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Saturday, October 31, 2015

How to keep the money in your bank account safe — online and offline


Scambusters.org





Is Your Bank Account Safe?

How to keep the money in your bank account safe — online and offline

Internet ScamBusters #92

Today’s issue was inspired by a very disturbing statistic we read last week. According to the research organization, Gartner Inc., illegal access to bank accounts is one of the fastest-growing financial crimes today.
Gartner estimates that during the past year, almost 2 million people in the US have had money stolen from their bank accounts! The average loss was $1200, with a total of more than $2 billion in losses for the year.
Today’s issue explores this problem — and shows you how to keep the money in your bank account safe — online and offline.
Before we get going though, we wanted to address a question by a subscriber about our recent issue on florist scams. The subscriber asked us if we include companies like FTD in florist scams.
Answer: No. There are a number of companies like FTD that are certainly not scams. These companies let customers know what the charges will be (so customers do not get bogus and unexpected charges).
If you missed that article on florist scams, check it out. We also include a new link to a site on roses that includes some interesting information on growing and enjoying roses that was recommended by our local florist.
OK. Let’s get going…

How Safe Is The Money in Your Bank Account?


Today’s article is not about what happens if your bank fails. Although this can be a real problem, most bank accounts in the US are insured by the FDIC to cover losses up to $100,000.
Action: We certainly recommend that you always make sure that your bank is financially sound and that your bank account deposits are fully covered by the FDIC.
However, today we focus on how to keep the money in your bank account safe from scammers and thieves. We’ll talk about keeping your money safe through both online and offline banking.

Online banking

Let’s start with online banking, since that’s where the problems are growing fastest.
Online banking certainly provides great convenience — and can save you a lot of time. Online banking lets you check your balances, transfer money between accounts, and pay bills.
However, you need to be vigilant and protect your online bank account. Here are some tips on how you can protect your bank account and keep it safe from theft:
1. PAY ATTENTION. Log in to your account on a regular basis, even if you don’t have any transactions to do. Simply take a look. It only takes a moment to review your information so that you know what’s going on — and to make sure nothing is wrong.
Action: If you do discover a problem or a discrepancy, contact your bank immediately.
2. KEEP IT PRIVATE. Don’t be tempted to do your online banking in the library or the local Internet cafe. You have no way of knowing who has access to that information — or how they’ll treat it.
Plus, there may be keystroke loggers on the computer, which make it very easy for a thief to steal your private information.
(A keystroke logger is a hardware device or software program that monitors each keystroke a user types on the keyboard. This information can then easily be transmitted to the scammer, who then can have access to user names, passwords, and other confidential information.)
Action: Never use public computers for transactions that involve private information.
3. INITIATE CONTACT YOURSELF. Don’t ever try to access your account through an emailed link — no matter how much that email looks like it came from your bank.
These kinds of emails that request you to log into your bank account are most likely ‘phishing’ scams. We’ve written quite a bit about these scams in past issues. For more info onphishing scams, click here.
Plus, don’t give out any personal information if someone who claims to be from your bank contacts you, by email or by phone.
Action: The best way to be reasonably sure that you really are dealing with your financial institute is to always initiate the contact yourself.
4. CHECK FOR SECURE CONNECTIONS. When you visit the bank’s site, make sure that the page where you type your info always starts with https: The ‘s’ means that the URL is on a secure server.
Action: Never type confidential information or passwords into a non-secure page.
5. CHANGE YOUR PASSWORD REGULARLY. And don’t tell anyone what it is, or allow anyone else to use it. Even people you trust should not have access to your online banking password.
Action: Change your password at least once a quarter. If you suspect there may be a problem, immediately change your password and call your bank.
6. INSTALL BARRIERS. If you are doing online banking, your computer should have the following software installed:
– A firewall. Firewalls ‘block the door’ to your computer so ‘hackers’ can’t access the information on your hard drive. To learn more about firewalls, click here.
– Spyware blockers. Spyware is any program that secretly downloads onto your system when you access the Internet, often through pop-up ads or attachments.
The software gathers information about you from your computer and sends it to ‘third parties’ — who could be scammers who will steal your money. You can learn more about spywarehere:
– Anti-Virus software. Scammers sometimes send virus ‘trojan horse’ programs by email, and anti-virus software installed on your system can stop these. To learn more about anti-virus software, click here.
Action: Install a good firewall, spyware blocking software, and updated anti-virus software program.
Action: Report all problems and suspicious activity immediately.

Offline Banking

There are lots of ways that thieves can gain access to your bank account info offline as well. Here are a few precautions for you to take:
– As with online banking, pay attention. Don’t just get your bank statement and toss it on the ‘to-do’ pile on your desk. Your to-do pile is probably way too big, and it might be days before you get around to opening that envelope. You can’t spot a problem if you’re not paying attention — and if you don’t spot an existing problem, it could cost you a great deal.
Action: Read your bank statements as soon as you get them.
– Be very careful with your ATM card. Don’t lend your ATM card to anyone or share your password. And never write your PIN number on your ATM card or have it anywhere near your ATM card (in the event that your wallet gets stolen).
– Shield your transactions when you use your ATM card so no one can see what you are keying in.
– Check to make sure that no hardware devices have been added to an ATM machine you’re using.
These devices, called ‘Skimmer’ devices, can record the info from the magnetic strip on your ATM card along with your PIN number. They take less than 15 seconds for the scammer to install and uninstall them.
Some Skimmer devices are installed over the keypad on an ATM machine — and may include warnings, supposedly from the bank, about how this equipment is being tested. If you see anything like this, do NOT use the ATM machine.
– Shred old and unused checks, as well as any unwanted paper that has your bank account number on it.
– Never give anyone a signed blank check.
Check out our article on credit card fraud: 21 tips to protect yourself. Much of this article is also useful to help you avoid bank fraud.
For more on the Gartner study, visit:
==> http://msnbc.msn.com/id/5184077/
If you do find a fraudulent transaction, report it to your bank immediately. Your bank is required to refund your money as long as you notify the bank within 60 days of receiving your statement. However, the sooner you begin the process, the faster action can be taken to stop the fraud.
If you follow these suggestions, there are no guarantees (since these folks are very, very clever), but you will have a very good chance of keeping your bank account safe from scammers and thieves.
Time to wrap up. We have a really important issue for you next week that’s a bit different, so be sure to watch for it.

5 Scams That Target Your Bank Account



US NEWS MONEY



A bank customer making a transaction with a bank teller in a retail bank.

5 Scams That Target Your Bank Account

Don't fall for these frauds that will wipe out your cash reserves.

A bank customer making a transaction with a bank teller in a retail bank.
It should go without saying, but never cash a check for a stranger "in need."
By + More
With numerous data breaches affecting millions of people, many Americans are on alert about credit cardfraud. But not as many are aware when it comes to bank account scams. Bank account scams target a victim’s cash, and the damage can be much more detrimental to one’s finances than other scams – including credit card fraud.
Under the Fair Credit Billing Act and the Electronic Fund Transfer Act, you can be held accountable for a maximum of $50 if unauthorized purchases were made on your credit card. In the case of bank account fraud, your liability will depend on when you report it. The bad news is, you are accountable for all fraudulent charges on the account if you report them more than 60 days after the statement is sent.
With the potential danger of getting your whole cash reserve wiped out, it’s crucial that you are aware of the most common scams that directly target the funds in your bank account and how to avoid them to keep your money safe.

10 Ways to Protect Yourself From Online Fraud

Check Overpayment Fraud
Check overpayment fraud is a popular sales scam that targets sellers from online auctions and classified advertisement websites. During a transaction, the fraudulent buyer will pay the seller with a non-cash payment for more than the amount of the item. In this case, scammers need to move quickly in order to prevent the seller from verifying the check. The seller will be asked to immediately deposit the full amount and wire the difference to the buyer.
The phony check will eventually bounce and be returned unpaid, which will cost the seller an average of $12.85 in a deposited item returned fee, according to a 2014 MyBankTracker analysis. This is in addition to an average of $27.40 the seller will be charged for the outgoing domestic wire transfer made to the criminal. The worst part? The seller will be fully accountable for the fraudulent check and the wired amount, which cannot be reversed.
How to avoid this scam: If you receive any non-cash payments, such as a check, money order, U.S. postal money order or other similar items, you should take appropriate steps to protect yourself. Even if you’re not an expert at spotting a counterfeit check, you can avoid becoming a victim by calling the bank where the check was issued or asking your own bank teller to verify its legitimacy.
Charity Fraud
Anyone who still uses a landline may have experienced this once or twice. You receive a call asking for donations to the local police department or to military families. After you’re hooked, the crooks elicit information about your bank account or debit card to make the donation over the phone – giving them full access to your checking account.
How to avoid this scam: To make sure your good intentions do not go to waste, the safest way to give to a charity is by choosing an organization you are familiar with. Be cautious about giving your information to individuals who reach out to you first by telephone or email.
Cashing a Check for a Stranger
No one wants to turn his or her back on someone who needs help. This scam involves strangers conveniently stopping you at the bank and asking if you can cash a check for them since the bank won’t allow them to because they do not have an account at that bank. In exchange, they’re willing to give you some cash for your time and trouble. Here's the catch: Although the check is deposited, it hasn’t actually cleared. So even if you think you pulled the money from their check, you actually pulled money from your funds and handed them over to the criminal.
How to avoid this scam: In general, it’s not a good idea to cash a check for anyone, much less a stranger. While it is possible to cash a check at a bank as a non-customer, there is still a fee. It is often less than $10 and therefore would not make sense for someone else to pay you such a high incentive to do this favor for them – unless they have ulterior motives.
Work-at-Home Job Scams
The economy is still recovering, and the recession resulted in a surplus of people looking for ways tomake quick cash. Some crooks take advantage of this situation by offering jobs that require people to transfer funds through their personal checking accounts. The scammers offer victims a “commission” in exchange for facilitating money transfers through their personal accounts.
How to avoid this scam: If you are asked to work at home for minimal work and high pay, it’s probably a scam. Do not accept any work-at-home opportunities that involve sending money in advance and sending a portion to a third party via wire transfer. Also, when receiving a check, make sure there aren’t discrepancies or typos that may cause the check to be flagged as being fraudulent.
Award Scams
Many situations that seem too good to be true usually are. That’s not to say these things don’t happen – but winning a lottery or sweepstakes without actually participating? It’s probably not very likely. In these scams, you are told that you’ve won a foreign lottery. Crooks will send you a very large check to deposit into your personal checking account. You will then be asked to immediately wire a portion of the funds to pay for government taxes and administrative fees.
How to avoid this scam: If you didn’t apply for it, you didn’t win it. Note that it is illegal to participate in a foreign lottery via mail or phone in the U.S. Additionally, when winning a lottery, you will not be responsible for paying taxes or fees directly to the government.
Protect Yourself 
Scammers will continue to come up with creative ways to get into people’s bank accounts, which often involves victims pulling cash out of their own accounts to hand over to the criminals.
Keep in mind that scammers often target people who are searching for jobs, dating, selling products and even do-gooders looking to help someone in need. Be sure to keep these common scams and tips in mind before you put your funds at risk.