We know, this sounded a little crazy to us at first but it is certainly true.

Apparently, Federal agents in New York (Queen’s) have been following a ring of credit card scammers for some time now. They recently received the appropriate subpoena that allowed them to bust in on the card forgers and search their property. It was at this time that a gentleman by the name of Florin Necula proceeded to  swallow a flash drive data storage device(no word on how many gigabytes it was).

Necula was immediately transported to a hospital where doctors were instructed to remove the flash drive for fear that Necula would be injured if it were to pass through his digestion system. This device is thought to house data that was skimmed from debit and credit cards at various ATM locations. This data was going to be used to recreate those cards for unlawful use.

The kicker to this story is that the defense attorney (Sanford Talkin) is filing a motion to suppress this evidence. He states, “They don’t have a right to take it from him”.

The Better Business Bureau (BBB) is advising people to be cooperative but cautious when participating in this year’s U.S. Census. Workers have begun verifying addresses for households across the country, and the following are guidelines you should be aware of when responding to the 2010 Census:

• All Census takers carry official government badges marked with just their name. You may also ask them for a picture ID from another source to confirm their identity. Some workers might carry a U.S. Census Bureau bag. The Census Bureau will never, under any circumstances, ask to enter your home.
• Do not give your Social Security number, credit card or banking information to anyone, even if they claim they need it for the U.S. Census. The Census Bureau will not ask for Social Security, credit union account,or credit card numbers, nor will employees solicit donations.
• Census workers may contact you by telephone, mail,or in person at home. The Census Bureau will not contact you by email, so be on the lookout for email scams impersonating the Census. Never click on a link or open any attachments in an email that are supposedly from the U.S. Census Bureau.

For more information and to view a sample Census form,visit www.2010.census.gov.

For a long time, scammers have been utilizing a number of different approaches to try and bilk unsuspecting individuals of their hard earned money. In the past, they have tried unsubstantiated Nigerian lotteries, secret shopper programs, and even crazy cash checking schemes. Now they are attempting to achieve the same success but through the use of consumer fear.

One of our readers recently sent us an email that they received from a “collection agency” stating that they were collecting an unpaid balance on behalf of their client. The subject line of the email was entitled PAST DUE NOTICE and a PDF version of the communication was attached. The content of the letter is below. As you can see, it uses all the proper phrases and buzz words that are included in any standard collection agency notice. With the exception of the account number being asterisked out and no mention of the actual client they are trying to collect for, this letter could be quickly construed as being an official document and warrant a quick reply or response.

Our assumption is that the scammers are relying upon the fact that the sense of urgency expressed in the letter would encourage recipients to hit reply and inquire for additional information. At that point, the scammer will probably have a second phase of their scheme set up to further entice the unsuspecting target to be relieved of any extra funds.

As always, we encourage our readers at SmartSecurityPeople.com to be vigilant in regard to emails, phone calls, and text messages that they receive from unknown sources. If you know of anyone that would benefit from this information, please be sure to use the Share Tab below to spread the wealth of this knowledge.

US NATIONAL DEBT COLLECTIONS INC.

801 S. 48TH STREET

PHILADELPHIA, PA 19143

ACCT #: ****************

AMOUNT: 0.00

FEES: 0.00

INTEREST: 0.00

TOTAL DUE: $873.13 (DEBT SETTLEMENT)

PLEASE BE ADVISED THAT WE HAVE BEEN RETAINED TO COLLECT THIS DEBT ON

BEHALF OF OUR CLIENT. WE HAVE ATTEMPTED TO NOTIFY YOU ON SEVERAL

OCCASIONS REGARDING YOUR DELINQUENT ACCOUNT. WE THOUGHT IT BEST TO STATE

OUR INTENTIONS AND MAKE IT CLEAR THAT WE INTEND TO COLLECT THIS DEBT

USING ALL AVAILABLE MEANS AT OUR DISPOSAL.

UNLESS WE RECEIVE PAYMENT FROM YOU SOON, WE WILL ASSUME THAT YOU HAVE NO

INTENTIONS OF LIQUIDATING YOUR DEBT VOLUNTARILY. WE WILL ADVISE OUR

CLIENT THAT THEY MAY WISH TO FILE SUIT AGAINST YOU TO RECOVER THIS DEBT.

PLEASE UNDERSTAND THAT IF LEGAL ACTION IS UNDERTAKEN, IT COULD BE COSTLY

AND TIME CONSUMING. IF YOU SHOULD LOSE IN SUCH AN ACTION, YOU COULD ALSO

BE SUBJECT TO COURT COSTS AND/OR ATTORNEY FEES, IF APPLICABLE. THERE ARE

VARIOUS AVENUES WHICH COULD BE USED TO SATISFY SUCH A JUDGEMENT. THIS

COULD INCLUDE GARNISHMENT OF WAGES, SEIZURE OF BANK ACCOUNTS OR OTHER

PERSONAL PROPERTY.

IT IS NOT OUR INTENTION TO THREATEN YOU BUT TO POINT OUT THE PROBLEMS AND

COSTS ASSOCIATED WITH REFUSING TO PAY YOUR DEBT. WE HOPE THAT NO FURTHER

ACTION WILL BE NECESSARY AND YOU WILL AGREE TO OUR AMICABLE PAYMENT

ARRANGEMENT.

PLEASE: TO ENSURE PROPER CREDIT, REMIT PAYMENT IMMEDIATELY. FOR YOUR

CONVENIENCE WE MAY BE ABLE TO ACCEPT PAYMENT ON YOUR ACCOUNT IN THE

FOLLOWING METHOD: WESTERN UNION.

HOW TO PAY:

Visit www.westernunion.com or your nearest Western Union agent location

and make your payment of $873.13 to:

Lisa Baker

Philadelphia, PA

After your payment has been sent, please email us the following

information:

The Money Transfer Control Number. (MTCN)

The exact dollar amount sent.

Your first and last name.

The city and state the money was sent from.

THIS COMMUNICATION IS FROM A DEBT COLLECTOR. THIS IS AN ATTEMPT TO

COLLECT A DEBT. ANY INFORMATION OBTAINED WILL BE USED SOLELY FOR THAT

PURPOSE

It’s important that you are armed with information about scams targeting unsuspecting individuals. There is a new mail scheme that uses insurance companies’ names in a ploy involving counterfeit checks, an example of which can be seen here:

This is how the scam works:

Consumers receive checks, like the one above, that appear to be from companies such as Nationwide Insurance, Infinity Insurance or Progressive Insurance. The checks range from $3,500 to $4,900 and come with a letter informing the recipient that they won a $150,000 “Consumer Promotion Draw” because they shopped at select retail establishments during a certain period of time. The letter goes on to explain that the check has been issued to cover a “Non-Resident Government Tax” or “Tax Clearance Fee” that the consumer will have to pay to a British Tax Officer.

Recipients are told that in order to receive the $150,000 prize, they must cash the check and then send between $2,800 and $3,750, by Moneygram International or Western Union Money Transfer, to an address in the United Kingdom. Consumers are given a toll-free number to call, but they are asked not to talk about their winnings until the claim has been processed.

If a consumer were to cash the phony check, they could find themselves owing the bank the entire amount of the check plus additional fees charged by the bank.

Remember, if an offer sounds too good to be true, it probably is. Please be sure to utilize the SHARE TAB at the bottom of this article to pass this information onto anyone that you feel would benefit from this information.

Ok.. we knew it would only be a matter of time before the scammers would be trying to profit from the government’s latest program rolled out to get our country moving away from our dependency on foreign oil. However, I must say that I can not believe at how quickly they jumped all over the Cash For Clunkers rebate program. Cash For Clunkers is the loose description of the program. It’s real moniker is Car Allowance Rebate System or CARS. The program is designed to provide consumers with a $3500-$4500 credit if they trade in less fuel-efficient cars on news ones that meet certain qualifications.

Scammers are always quick to try and piggyback new programs and trends. Apparently, impostors are telling consumers they need to pre-register or provide their Social Security numbers to be part of the program. Websites have been popping up all over the net that request people to register for the Cash-for-Clunkers program and they will put you in touch with authorized dealers in your area.

According to the National Highway Traffic Safety Administration (NHTSA), consumers don’t need to register or obtain a voucher to benefit from the program. Instead, dealers will apply a credit at the time of purchase. NHTSA also says the credit applies only to the purchase or lease of a new vehicle; all trade-in vehicles will be destroyed.

We know that most our readers at SmartSecurityPeople.com are already aware of these types of tactics and are quick to steer clear of giving anyone your private information. However, please be sure to pass this information onto others that are less knowing so that they don’t fall prey to the Cash For Clunkers scam.

For more information on CARS, visit www.cars.gov or call the CARS information hotline at (866) CAR-7891 (227-7891).

Ever since the Obama Administration took office and discussion began about an additional stimulus check, the internet has been heavy laden with “opportunities” for people to cash in early and take benefit of these additional funds. Most of the readers at SmartSecurityPeople.com are probably already vigilant about not being duped by these scam artists, especially if you have read our article on Protecting Your Identity. However, we feel it necessary to bring this latest scam to light for our new readers.

The process simply starts when you stumble upon an email, online ad, or website that says you are eligible for an economic stimulus payment. The message looks like it may be from a rebate company or possibly even straight from the Internal Revenue Service (I.R.S.). When you click through their provided information, they confirm your eligibility and guarantee you a payment but you first have to submit a small fee to them to cover the processing of your funds. The moment you send them the funds it will be the last you hear from them and you will never see your money again.

Another stimulus scam, very similar to the one above, involves them skipping the whole small fee request and going directly for the jugular by asking for your banking information. You know… to deposit all of your extra stimulus money electronically and efficiently into your checking account.  In reality, they will use this information to drain your bank account, open up other accounts in your name, and create a domino effect of problems for you try and sort through at a later date.

The last type of stimulus scam that we have come across at SmartSecurityPeople.com is not unlike the two we have already covered. The difference though, is that instead of going after your financial information directly, they will encourage you to click on certain links or download forms. In turn, this downloads spyware , viruses, and harmful software on your computer that can be utilized to capture your personal information and forward it onto an identity thief.

So.. you ask.. What can I do to not fall prey to this type of scam?  The answer is fairly simple. If you get an email that sounds like any of the scams above, you will want to delete it immediately. If you come across a website or online ad that is attempting to collect a fee or get your financial information, you will want to steer clear and quickly leave that area of the internet.  If you receive a phone call inquiring about similar information, you will want to hang-up …or… you can gather all their contact information and pass it onto the FTC at (877) 382-4357.  The key thing to remember as well is that the IRS will not send you emails, in most cases they will not call you directly, and they certainly will not be sponsoring stimulus check ads online. They still like to do business the old fashion way, which usually involves snail mail.

Hope this information helps our readers at SmartSecurityPeople.com. If you have additional comments or tips about economic stimulus check scams, please feel free to leave a comment. We always enjoying hearing from you!

Back in the day most (if not all) of your banking transactions were done face-to-face with a teller or some other banking representative. As time progressed and technology enhanced, the one-on-one time with your bank representative and that smiling teller is no longer convenient for the traditional bank customer. We, as bank customers, have come to expect more from our banks. We want online access 24/7 to our accounts, the ability to transfer funds at all hours of the day, and an ability to initiate any new banking feature quickly and efficiently with the click of a mouse. Some banks are now even offering the ability for their customer to receive mobile alerts directly to their cell phone if a balance falls below a certain level or a transaction of unusual size is being processed. With all of these conveniences, it is hard to imagine that there would be many problems. However, it is all of these fast tracks to service that open you and your bank accounts up to fraudulent activity and that is why you need to take measures to protect them.

“Firewalling” Your Bank Account

A firewall is a security measure that you put into place to keep two things apart. We mostly refer to firewalls in this day and age when we are talking about network and data protection. If you want to protect your computer from harmful viruses or your email from spammers , you create a firewall. Only those with the proper clearance are permitted to pass through the firewall. My guess is that the term “firewall” probably originated out of medieval times when it was common to pour vats of hot oil over a castle wall to keep attackers at bay but our current use of the term still seems very fitting.

Now that you know what a firewall is, how do you set one up for your bank account? The answer is easy. In most banking situations, you usually have a savings account and a checking account. In this simple scenario, the checking account would be the firewall for your savings account. Meaning… all of your transactions (online, via check, and debit card) are associated with your checking account and you transfer money internally(within the banks infrastructure) from your savings to your checking to cover bills. You never pay anyone directly using your savings account because you want to keep that account information private. With this scenario, if your checking account number becomes compromised, the would be violator would only have access to funds in your checking account and not your savings account. TA-DA you have put a firewall in place.

Now You Make Things More Complicated…

You decide that you are going to start investing online with a popular broker like E*Trade, purchasing things through eBay with PayPal, and basically go on a spending spree with internet retailers from around the world. It is ok though because firewalling can still work for you regardless of how complicated your make your finances.

The Solution…

• STEP 1: You will want to open a new checking account. You can do it at your current bank or you can you do it at another bank. The reason for this new checking account is because you do not want to open up your day-to-day checking account to all the unscrupulous characters out on the internet.
• STEP 2: When you want to fund your day trading account at E*Trade or boost up your PayPal account for a shopping spree, you will fund these accounts out of your new checking account. Why? you ask.. Because PayPal and other financial institutions are notorious for being targeted by look alike scammers wanting to prey upon your naivete and hopefully gain access to your funding account. Since you have set up a “firewall” they will not have access to your regular checking account that you pay your mortgage, car payment and groceries out of and they will have less of an impact on your day-to-day finances.
• STEP 3: Get a Credit Card! Did you know that every time you swipe your debit card, you are giving someone the opportunity to not only drain your checking account but also potentially overdraw it. Your bank has measures in place to protect you from these fraudulent transactions but it could take them up to 4 weeks to replace the stolen funds in your checking account as they verify the legitimacy of the fraudulent transaction . If you use a Credit Card for all your purchases that you would normally do with a debit card and pay that card off each month from your checking account, you will be protecting yourself from fraudulent transactions and maybe even earning some cash back of air miles at the same time. If someone compromises your credit card account, they are not impacting your checking account and you can dispute(and not pay) the transaction right away with MasterCard, Visa, etc…

Hope this information is helpful for our readers at SmartSecurityPeople.com. Should you have additional questions about the topic of “Firewalling Your Finances”, please be sure to drop us a line.

One of our readers at SmartSecurityPeople.com just recently informed us of a Mystery Shopper Scam that they received. Here is their message:

Just wanted you to be aware of mystery shopper check that come in the mail. I received one the other day and will tell you the check looks very real. The company was Manpower (Walmart, Bestbuy, etc).  I decided to call the number to see what they had to say. I was told to go to the bank and cash the check and call them back immediately, then I would be told where to wire the money gram. The check was for 2995.00, I was to get 200.00 for doing the mission after I sent 2285.00 to where ever. It is sad because many people need money and it (check) looks very real. What alerted me was a hand written envelope (any child could of done better) with a Canadian stamp, the letter was from Wisconsin, and the check was on an Arkansas bank. I gave it to the local bank to give to the Fraud Unit. So beware of easy money.

This type of scam has been around for a long while and is nothing new. However, this is the first time we have heard it being introduced under the disguise of a Mystery Shopper Program.

How Does It Work?

The scammer will send you a check that for all intents and purposes appears to be real. However, the check is usually a really good fake and the account numbers on it don’t match up to anything. Usually the 9 digit bank routing number and bank name will be valid but the checking account number will be bogus.

When you cash the check at your bank, they have no easy way of instantly verifying the availability of the funds and will process it like any other check. By the time the check is returned for “NO ACCOUNT FOUND”, which can sometimes take up to a week, you have already left with the cash, gave a portion of it to the scammer, and kept the “fee” for yourself. The bank now comes after you and holds you responsible for making good on the check since you got the cash.

How Do You Prevent It from Happening To You?

You do just as our reader stated. You inquire about the legitimacy of the transaction and you seek the help of those in the profession(a bank in this instance) to give you guidance.  Remember… if it seems to good to be true, then in most cases it is. You must be vigilant at all times and not let the stress of our depressed economy make you more susceptible to these types of scams.

We hope this information is helpful for our readers at SmartSecurityPeople.com.  If you ever encounter a scam or something that even remotely looks like a scam, please fee free to share your story with us and we will be more than glad to pass it on to our readers. Knowledge is power and the more we have the better off we all will be.

Those of you that have college age and college ready children will want to take note of this article. Those that do not, you will still want to read this article to make sure you can help counsel someone else that is just entering into the world of higher education and learning all the great facets of financial aid.

People claiming to be employed by the Department of Education are calling unsuspecting families and offering them a large scholarship and/or grant. The kicker though - they are asking the family for a credit card to cover a $249 processing fee. As if college was not expensive enough, now you have scam artists trying to profiteer off of people’s longing to cover the educational expense for their son or daughter.

If you are a seasoned professional when it comes to college expenses and financial aid, you can disregard the following information. If you are new to the process, please read the following tips:

• The Department of Education will never contact you directly. They will work with and through the college of your choice to see what kind of aid might be available for you.
• If someone is offering you a “free” scholarship make sure you get all the details and understand where the funds are coming from and why you are a recipient (especially if it is not one that you have applied for).
• Avoid any scholarship conversations that include the following: “The scholarship is guaranteed or your money back.”, “You can’t get this information anywhere else.”,”I just need your credit-card or bank-account number to hold this scholarship.”,”We’ll do all the work.”,”The scholarship will cost some money.”, “You’ve been selected by a ‘national foundation’ to receive a scholarship.”,”You’re a finalist.”
• Never give anyone your private bank or credit card information - especially when it is relating to a scholarship “opportunity”.

If you are unsure about the legitimacy of a particular scholarship offer, drop a call to your local financial aid office and run it by them. They are the professionals and work with this type of information every day and will be in the best position to give you clear and unbiased advice.

The Federal Trade Commission encourages families to notify them if you believe that you have been approached by a scholarship scam artist. You can contact them by sending an email to oig.hotline@ed.gov or by calling 1-800-MIS-USED.

Have any of our readers at SmartSecurityPeople.com ever encountered a scholarship scam artist? Any additional tips you would like to share for the good of the order?

A brother and sister duo (Melissa and Marvin Heggie) from Raleigh managed to defraud JPMorgan of $340,000 in student loans and never had to step foot on a campus or register for a course. You wonder how this can be done given the strict criteria that eduction lenders are adhering to when processing and approving student loans.

The student loan program provided by JPMorgan /Chase allows a student to apply for a private student loan and does not require certification from a school to prove that the student is actually in attendance. Once the loan is approved, the disbursement check goes directly to the student and the school is not involved. Sounds like a great unsecured loan option huh? The Heggie’s thought so. However, they never planned on paying it back.

The Heggies duped 14 other people to give them their social security numbers along with other private identifying information (They made promises of quick cash for the participants.) They then utilized the information to complete bogus student loan applications with a pre-established address set up by the Heggie’s. When the loan was approved and a check sent, the Heggie’s would meet up with the applicant and they would all cash the check together. Each person got their pre-determined amount and parted ways. Apparently the Heggie’s did this for almost a year before getting getting caught.

There are multiple learning points that can be had from this story:

1. Never ever give anyone your social security number or other personal identification information.
2. Always check your credit report to make sure no one is using your information inappropriately. (Check out our guide to protecting your identity)
3. If it sounds to good to be true, then it probably is.
4. If you need approved for a good education loan, it appears that JPMorgan/Chase could be the bank for you. Obviously, they do not overly screen/qualify their applicants.

Hope this story helps our readers at SmartSecurityPeople.com. Has anyone ever experienced a similar loan scam not in the educational sector? If so , please feel free to share below in comments. The more we know what to look out for, the better for all of us.