Identity Theft Insurance
One of the most misleading, overpriced services available to consumers is insurance for identity theft. Several companies offer them, and they are certainly not worth it. They do nothing to repair your credit, only provide financial insurance in case someone steals your financial information. You are generally covered by your credit card companies and bank accounts, so additional insurance is not needed.
In the case of identity theft, the problem is not so much financial loss as it time of recovery. It may take months to convince the banks and credit card companies to release your account back to you, and whether you are insured or not, your credit rating will suffer. Go to the web sites of these companies and you’ll see comparison charts. Like automotive commercials comparing one car to another, each insurance company only lists the features in which they will be superior. If they do not match up to other companies their chart will not include that item. Thus they look good, no matter what quality of service they provide.
Privacy Rights Clearinghouse, often quoted by not only these insurance companies but others in the field, states:
“Generally, credit monitoring services cannot protect against the five kinds of fraud which we will describe below. Some more comprehensive services may be able to provide limited protection against these other types of fraud. Generally, services that claim to provide more comprehensive protection monitor online chat rooms, blogs, and news sources to look for evidence of criminal activity. However, there is no assurance that a particular fraudulent activity will become the subject of an online discussion. The ability of such enhanced services to protect you from fraud is as yet unproven. Clearly there is a tremendous amount of fraudulent activity that does not get discussed online.
In our opinion, most identity theft monitoring services are unable to provide anything close to complete protection for the following kinds of unlawful activity:
a) Existing account fraud occurs when an imposter uses your current accounts to commit fraud. For example, an imposter could use your credit card account number to make a purchase from an online vendor, or your bank account number to make a withdrawal. This is also referred to as “account takeover” fraud. You generally learn of such fraud by carefully reviewing your monthly account statements.
b) Debit or check card fraud occurs when an imposter uses your debit card or check card (or the information from your card) to remove money from your bank account. The imposter does not need to know your PIN because he or she will be able to use the card for an “off-line transaction.”
c) Social Security number fraud occurs when an imposter uses your SSN to obtain employment, for tax reporting purposes, or for other illegal transactions. For example, an undocumented worker might use your Social Security number to obtain employment or an imposter might use your SSN to avoid paying taxes on their income.
d) Criminal identity theft occurs when an imposter gives another person's name and personal information (or counterfeit documents) to a law enforcement officer during an arrest. Frequently, the imposter fraudulently obtained a driver's license in the victim's name and provides that identification document to law enforcement. Or the imposter, without showing any photo identification, uses the name of a friend or relative.
In many cases, the imposter is cited for a traffic violation or for a misdemeanor violation and is immediately released from the arrest. If the imposter then does not appear in court at the appointed date, a warrant of arrest will be issued under the victim's name. If at a later date the victim is stopped for, say, a traffic violation, he or she may be arrested because of the outstanding bench warrant.
e) Identity theft involving one’s health information (medical identity theft) occurs when an imposter uses an individual’s name and/or other information (often insurance information) to obtain or make false claims for medical goods or services. Medical identity theft may result in erroneous entries being entered into an existing medical record, or the creation of fictitious medical records in the victim’s name.
This potentially can have fatal consequences for the victim. For example, in an emergency room setting, the victim may be unconscious at the time of treatment. If the victim’s medical record reflects the imposter’s blood type, allergies, medications, or other medical conditions, health care providers may make dangerous errors.
For detailed information about identity theft, how to minimize the likelihood of becoming a victim, and ways to fix such problems without paying for expensive insurance, visit the Privacy Rights Clearinghouse at http://www.privacyrights.org/fs/fs33-CreditMonitoring.htm
Monday, June 29, 2009
Tuesday, June 23, 2009
Consumer Safety & Awareness Part 24
Refusal to Pay
In a slightly less traditional sense, theft of services results when a customer refuses to pay for a service performed. This can happen in many instances from the use a professional such as a co-writer or lawyer to a medical situation. Although it would be unusual for someone to receive health services without first providing proof, at minimum, of identity, it does happen.
If you are a business owner, anyone who uses what you provide without paying is guilty of either theft of service or product thievery. Individuals can be victims as well if they ever provide assistance to someone with the expectation of receiving anything in return and are then not paid.
For example, the Texas District Attorney’s office reported the following incidents:
a) Lady takes her sick cat to the Vet but later never pays the vet bill.
b) Parent takes kid to day care but fails to pay bill for several months of day care services.
c) Man with no insurance goes to dentist for teeth cleaning, gets teeth cleaned, then fails to pay dentist bill.
d) Lady gets car repaired by mechanic at auto garage and fails to pay bill.
e) An attorney went to pickup a saddle he was having reworked. He took the saddle out to his truck to "get his checkbook". The lawyer then got in his truck and drove off without paying for the saddle. When the saddle maker called the police and they contacted the attorney, the attorney claimed the saddle maker owed him some legal fees for "advice given at the saddle shop". The lawyer even prepared a bill that same date for his services and put it under the saddle maker’s door. The sad thing is this lawyer does this to people all of the time.
While each situation has to be judged individually, after studying a number of such cases, these District Attorney’s came to a conclusion:
“The answer is always: what can you prove was the intent? If you can prove the drawer of the check did not intend to transfer the money by check (i.e., he knew he was going to put a stop payment regardless of the completion of the work), then you have a theft.
The stop payment is merely the camouflage. It may or may not be legitimate. You still have to prove what was in the mind of the drawer when the service was done. So, you obtain a statement explaining the stop payment. You look to see if the person has done this before (a history of 30 stop payments might be a clue).
You know that most of the elements are proven. The only element of them in doubt is the intent to deprive, which must be formed at or before the service was provided.”
A search on the Internet shows some examples of this problem:
a) A pilot was arraigned on three felony counts of theft of services after being accused of cheating an aviation company of more than $80,000 for chartering three private flights using a false credit card.
b) An investigation revealed a man illegally gained access to a local Internet service provider’s network and was selling that access to his customers. This illegal company has been in business for approximately two years.
c) In several cases in at least three states, after prostitutes charged men with rape when they did not pay for services given, the judges or prosecutors changed the charges to theft of services.
d) An actor was arrested after he refused to pay for an assessment on property he was interested in purchasing.
e) A municipal supervisor was convicted of having other county workers do repairs on his house while they were on county time.
f) Two men were prosecuted for arranging the phony rental of construction equipment. One was a worker at the rental company; the other was a contractor. Forging papers together, the contractor used rental equipment on his projects without paying for them.
g) A truck driver used inactive license plate on his trailers and went through the E-ZPass machines without paying for the tolls. His evasion on $4,748 in highway tolls in one state resulted in almost $30,000 in penalties. This included 633 violations in one year.
I once worked for an organization that promised me $500 a week for 20 hours of Internet development and organizational development. After ten weeks, having only received $100, I informed them that I expected to be paid what was owed. Eventually I took them to small claims court where I was granted what was owed, but since the organization dissolved was never able to collect, although the situation is still pending.
In a slightly less traditional sense, theft of services results when a customer refuses to pay for a service performed. This can happen in many instances from the use a professional such as a co-writer or lawyer to a medical situation. Although it would be unusual for someone to receive health services without first providing proof, at minimum, of identity, it does happen.
If you are a business owner, anyone who uses what you provide without paying is guilty of either theft of service or product thievery. Individuals can be victims as well if they ever provide assistance to someone with the expectation of receiving anything in return and are then not paid.
For example, the Texas District Attorney’s office reported the following incidents:
a) Lady takes her sick cat to the Vet but later never pays the vet bill.
b) Parent takes kid to day care but fails to pay bill for several months of day care services.
c) Man with no insurance goes to dentist for teeth cleaning, gets teeth cleaned, then fails to pay dentist bill.
d) Lady gets car repaired by mechanic at auto garage and fails to pay bill.
e) An attorney went to pickup a saddle he was having reworked. He took the saddle out to his truck to "get his checkbook". The lawyer then got in his truck and drove off without paying for the saddle. When the saddle maker called the police and they contacted the attorney, the attorney claimed the saddle maker owed him some legal fees for "advice given at the saddle shop". The lawyer even prepared a bill that same date for his services and put it under the saddle maker’s door. The sad thing is this lawyer does this to people all of the time.
While each situation has to be judged individually, after studying a number of such cases, these District Attorney’s came to a conclusion:
“The answer is always: what can you prove was the intent? If you can prove the drawer of the check did not intend to transfer the money by check (i.e., he knew he was going to put a stop payment regardless of the completion of the work), then you have a theft.
The stop payment is merely the camouflage. It may or may not be legitimate. You still have to prove what was in the mind of the drawer when the service was done. So, you obtain a statement explaining the stop payment. You look to see if the person has done this before (a history of 30 stop payments might be a clue).
You know that most of the elements are proven. The only element of them in doubt is the intent to deprive, which must be formed at or before the service was provided.”
A search on the Internet shows some examples of this problem:
a) A pilot was arraigned on three felony counts of theft of services after being accused of cheating an aviation company of more than $80,000 for chartering three private flights using a false credit card.
b) An investigation revealed a man illegally gained access to a local Internet service provider’s network and was selling that access to his customers. This illegal company has been in business for approximately two years.
c) In several cases in at least three states, after prostitutes charged men with rape when they did not pay for services given, the judges or prosecutors changed the charges to theft of services.
d) An actor was arrested after he refused to pay for an assessment on property he was interested in purchasing.
e) A municipal supervisor was convicted of having other county workers do repairs on his house while they were on county time.
f) Two men were prosecuted for arranging the phony rental of construction equipment. One was a worker at the rental company; the other was a contractor. Forging papers together, the contractor used rental equipment on his projects without paying for them.
g) A truck driver used inactive license plate on his trailers and went through the E-ZPass machines without paying for the tolls. His evasion on $4,748 in highway tolls in one state resulted in almost $30,000 in penalties. This included 633 violations in one year.
I once worked for an organization that promised me $500 a week for 20 hours of Internet development and organizational development. After ten weeks, having only received $100, I informed them that I expected to be paid what was owed. Eventually I took them to small claims court where I was granted what was owed, but since the organization dissolved was never able to collect, although the situation is still pending.
Monday, June 15, 2009
Consumer Safety & Awareness Part 23
Theft of Services -- Part 2
(Continued from last week)
To attack the growing problem of cable service theft, the District of Colombia enacted this law: “No person shall:
a) Obtain, intercept or receive, or attempt to obtain, intercept or receive cable television services from a cable television company by device, converter, decoder, trick, artifice, deception or other means with the intent or purpose to deprive such company of an or all lawful compensation for rendering each type of service obtained;
b) Assist or instruct any other person or persons in obtaining, intercepting or receiving, or attempting to obtain, intercept or receive any cable television service, by any means whatsoever, without payment of all lawful compensation to the cable television company for rendering each type of service obtained;
c) Make or maintain a connection or connections, whether physical, electrical, mechanical, acoustical or by other means, tamper with or otherwise interfere with any cables, wires, components, modems, lock boxes, pedestals, or other devices or equipment of the cable television company used for the distribution of cable television service, with the intent or purpose to deprive such company of any or all lawful compensation, and without express authority from the cable television company;
d) Make or maintain any modification or alteration to any device, equipment or apparatus or remove, disconnect or sell any device, equipment or apparatus installed by the cable television company without the authorization of a cable television company for the purpose of intercepting, descrambling, decoding or receiving any program or other service carried by such company which such person is not authorized by such company to receive, or for the purpose of selling any such device, equipment, or apparatus; or
e) Make, manufacture, import into the District of Columbia, assemble, transfer, distribute, promote, sell, lease, lend, offer, own, possess, or possess for sale, advertise or publish for sale or lease any device, equipment or apparatus, or any instructions, information, plan or kit for such device, equipment or apparatus, or for a printed circuit designed in whole or in part to intercept, decode, descramble or otherwise make intelligible any encoded, encrypted, scrambled or other nonstandard signal distributed by a cable television company.”
Other states have similar laws. Although they are hard to detect, service companies have been fighting back by installing devices that detect usage surges and that can monitor the number of televisions or computers attached through individual houses and apartments. The companies are keeping their detection methods confidential so that they can maintain an edge over those who wish to overcome such safeguards.
(Continued from last week)
To attack the growing problem of cable service theft, the District of Colombia enacted this law: “No person shall:
a) Obtain, intercept or receive, or attempt to obtain, intercept or receive cable television services from a cable television company by device, converter, decoder, trick, artifice, deception or other means with the intent or purpose to deprive such company of an or all lawful compensation for rendering each type of service obtained;
b) Assist or instruct any other person or persons in obtaining, intercepting or receiving, or attempting to obtain, intercept or receive any cable television service, by any means whatsoever, without payment of all lawful compensation to the cable television company for rendering each type of service obtained;
c) Make or maintain a connection or connections, whether physical, electrical, mechanical, acoustical or by other means, tamper with or otherwise interfere with any cables, wires, components, modems, lock boxes, pedestals, or other devices or equipment of the cable television company used for the distribution of cable television service, with the intent or purpose to deprive such company of any or all lawful compensation, and without express authority from the cable television company;
d) Make or maintain any modification or alteration to any device, equipment or apparatus or remove, disconnect or sell any device, equipment or apparatus installed by the cable television company without the authorization of a cable television company for the purpose of intercepting, descrambling, decoding or receiving any program or other service carried by such company which such person is not authorized by such company to receive, or for the purpose of selling any such device, equipment, or apparatus; or
e) Make, manufacture, import into the District of Columbia, assemble, transfer, distribute, promote, sell, lease, lend, offer, own, possess, or possess for sale, advertise or publish for sale or lease any device, equipment or apparatus, or any instructions, information, plan or kit for such device, equipment or apparatus, or for a printed circuit designed in whole or in part to intercept, decode, descramble or otherwise make intelligible any encoded, encrypted, scrambled or other nonstandard signal distributed by a cable television company.”
Other states have similar laws. Although they are hard to detect, service companies have been fighting back by installing devices that detect usage surges and that can monitor the number of televisions or computers attached through individual houses and apartments. The companies are keeping their detection methods confidential so that they can maintain an edge over those who wish to overcome such safeguards.
Monday, June 8, 2009
Consumer Safety & Awareness Part 22
Theft of Services -- Part 1
Traditional Service Theft
Traditionally, “theft of service” meant obtaining a utility without paying for it. Thus if you illegally wired your television into a cable company, tampered with your electric or gas meter, or used a slug in a pay phone, you were subject to both civil and criminal charges. Today, with the Internet and other technology, the term can be expanded.
ComCast, which provides television, telephone, and Internet services, warns users, “Any unauthorized person who intercepts or receives communications provided over a cable system may be penalized under the Cable Communication Policy Act of 1984 [47 C.F.R. 553(c)]. This includes the theft of audio, video, textual data, and any other service. The law applies to manufacturers and distributors of equipment as well as to individuals. Parties found guilty of cable theft are subject to both civil and criminal penalties, which may include substantial fines and/or time in prison.”
Time Warner Cable explains it this way, “Theft of cable services is the reception of any services offered over a cable system without paying for the system. Cable theft is a widespread problem that results in revenue losses to the cable industry totaling several billions of dollars per year. By depriving cable operators of substantial revenue, people who steal cable adversely affect cable companies' ability to provide their customers with high quality products and services.”
New York State Law, as an example, specifically says that, in cases of tampering with gas meters for the purpose of reducing or escaping charges the culprit’s liability, “shall include, but not be limited to, the cost of investigating, repairing and replacing meters and pipes, and the cost of moving a meter and installing it in a secure location.”
Central Hudson Gas & Electric reports, “Our field representatives undergo regular training to recognize and report theft of service, and are active in seeking suspected cases during their daily tasks. Lost or unrecovered revenue can raise the cost of service to the vast majority of honest customers who legally receive and pay for their service.” During 2006, Central Hudson has recovered $160,000 from individuals attempting to steal electricity and natural gas through overt or fraudulent means.”
During the last three years people have been arrested and prosecuted for many types of such actions. Here are a few examples:
a) In Texas, a man illegally connected his mobile home to municipal water. He was fined $10,000.
b) In Florida, a person sitting in a car outside a private house was arrested for tapping into and using the homeowner’s WiFi connection.
c) In the state of Washington, a man parked his van outside a coffee shop to use their WiFi. After several warnings he, too was arrested under the theft of service laws.
d) In October, 2007, the first federal case involving downloading music by Internet without paying for it resulted in a $222,000 fine for a woman in Minnesota. There have been hundreds of civil cases won against people who download music without paying for it.
e) In Europe, people who violate intellectual property laws by Internet downloading can be fined, jailed, or both. It is not unusual for the conviction to include forfeiture of the computer involved and all peripherals.
f) In Japan a man who ran an extension cord from a neighbor’s house to power a rice steamer was arrested
g) In Guyana, South America, over 100 people were arrested in one week for theft of electricity.
h) The Baltimore Sun reports a 32-year-old man was, “arrested and accused of using electricity from a neighbor's house to power his computer. He was powering his computer through an electrical cord plugged into his neighbor's exterior outlet, police said. He was charged with fourth-degree burglary, theft of electrical service and trespassing.”
i) In India, seven people were arrested for tapping into other people’s telephone lines to call friends and relatives living in the United States,
To attack the growing problem of cable service theft, the District of Colombia enacted this law: “No person shall:
a) Obtain, intercept or receive, or attempt to obtain, intercept or receive cable television services from a cable television company by device, converter, decoder, trick, artifice, deception or other means with the intent or purpose to deprive such company of an or all lawful compensation for rendering each type of service obtained;
b) Assist or instruct any other person or persons in obtaining, intercepting or receiving, or attempting to obtain, intercept or receive any cable television service, by any means whatsoever, without payment of all lawful compensation to the cable television company for rendering each type of service obtained;
c) Make or maintain a connection or connections, whether physical, electrical, mechanical, acoustical or by other means, tamper with or otherwise interfere with any cables, wires, components, modems, lock boxes, pedestals, or other devices or equipment of the cable television company used for the distribution of cable television service, with the intent or purpose to deprive such company of any or all lawful compensation, and without express authority from the cable television company;
d) Make or maintain any modification or alteration to any device, equipment or apparatus or remove, disconnect or sell any device, equipment or apparatus installed by the cable television company without the authorization of a cable television company for the purpose of intercepting, descrambling, decoding or receiving any program or other service carried by such company which such person is not authorized by such company to receive, or for the purpose of selling any such device, equipment, or apparatus; or
e) Make, manufacture, import into the District of Columbia, assemble, transfer, distribute, promote, sell, lease, lend, offer, own, possess, or possess for sale, advertise or publish for sale or lease any device, equipment or apparatus, or any instructions, information, plan or kit for such device, equipment or apparatus, or for a printed circuit designed in whole or in part to intercept, decode, descramble or otherwise make intelligible any encoded, encrypted, scrambled or other nonstandard signal distributed by a cable television company.”
Other states have similar laws. Although they are hard to detect, service companies have been fighting back by installing devices that detect usage surges and that can monitor the number of televisions or computers attached through individual houses and apartments. The companies are keeping their detection methods confidential so that they can maintain an edge over those who wish to overcome such safeguards.
Traditional Service Theft
Traditionally, “theft of service” meant obtaining a utility without paying for it. Thus if you illegally wired your television into a cable company, tampered with your electric or gas meter, or used a slug in a pay phone, you were subject to both civil and criminal charges. Today, with the Internet and other technology, the term can be expanded.
ComCast, which provides television, telephone, and Internet services, warns users, “Any unauthorized person who intercepts or receives communications provided over a cable system may be penalized under the Cable Communication Policy Act of 1984 [47 C.F.R. 553(c)]. This includes the theft of audio, video, textual data, and any other service. The law applies to manufacturers and distributors of equipment as well as to individuals. Parties found guilty of cable theft are subject to both civil and criminal penalties, which may include substantial fines and/or time in prison.”
Time Warner Cable explains it this way, “Theft of cable services is the reception of any services offered over a cable system without paying for the system. Cable theft is a widespread problem that results in revenue losses to the cable industry totaling several billions of dollars per year. By depriving cable operators of substantial revenue, people who steal cable adversely affect cable companies' ability to provide their customers with high quality products and services.”
New York State Law, as an example, specifically says that, in cases of tampering with gas meters for the purpose of reducing or escaping charges the culprit’s liability, “shall include, but not be limited to, the cost of investigating, repairing and replacing meters and pipes, and the cost of moving a meter and installing it in a secure location.”
Central Hudson Gas & Electric reports, “Our field representatives undergo regular training to recognize and report theft of service, and are active in seeking suspected cases during their daily tasks. Lost or unrecovered revenue can raise the cost of service to the vast majority of honest customers who legally receive and pay for their service.” During 2006, Central Hudson has recovered $160,000 from individuals attempting to steal electricity and natural gas through overt or fraudulent means.”
During the last three years people have been arrested and prosecuted for many types of such actions. Here are a few examples:
a) In Texas, a man illegally connected his mobile home to municipal water. He was fined $10,000.
b) In Florida, a person sitting in a car outside a private house was arrested for tapping into and using the homeowner’s WiFi connection.
c) In the state of Washington, a man parked his van outside a coffee shop to use their WiFi. After several warnings he, too was arrested under the theft of service laws.
d) In October, 2007, the first federal case involving downloading music by Internet without paying for it resulted in a $222,000 fine for a woman in Minnesota. There have been hundreds of civil cases won against people who download music without paying for it.
e) In Europe, people who violate intellectual property laws by Internet downloading can be fined, jailed, or both. It is not unusual for the conviction to include forfeiture of the computer involved and all peripherals.
f) In Japan a man who ran an extension cord from a neighbor’s house to power a rice steamer was arrested
g) In Guyana, South America, over 100 people were arrested in one week for theft of electricity.
h) The Baltimore Sun reports a 32-year-old man was, “arrested and accused of using electricity from a neighbor's house to power his computer. He was powering his computer through an electrical cord plugged into his neighbor's exterior outlet, police said. He was charged with fourth-degree burglary, theft of electrical service and trespassing.”
i) In India, seven people were arrested for tapping into other people’s telephone lines to call friends and relatives living in the United States,
To attack the growing problem of cable service theft, the District of Colombia enacted this law: “No person shall:
a) Obtain, intercept or receive, or attempt to obtain, intercept or receive cable television services from a cable television company by device, converter, decoder, trick, artifice, deception or other means with the intent or purpose to deprive such company of an or all lawful compensation for rendering each type of service obtained;
b) Assist or instruct any other person or persons in obtaining, intercepting or receiving, or attempting to obtain, intercept or receive any cable television service, by any means whatsoever, without payment of all lawful compensation to the cable television company for rendering each type of service obtained;
c) Make or maintain a connection or connections, whether physical, electrical, mechanical, acoustical or by other means, tamper with or otherwise interfere with any cables, wires, components, modems, lock boxes, pedestals, or other devices or equipment of the cable television company used for the distribution of cable television service, with the intent or purpose to deprive such company of any or all lawful compensation, and without express authority from the cable television company;
d) Make or maintain any modification or alteration to any device, equipment or apparatus or remove, disconnect or sell any device, equipment or apparatus installed by the cable television company without the authorization of a cable television company for the purpose of intercepting, descrambling, decoding or receiving any program or other service carried by such company which such person is not authorized by such company to receive, or for the purpose of selling any such device, equipment, or apparatus; or
e) Make, manufacture, import into the District of Columbia, assemble, transfer, distribute, promote, sell, lease, lend, offer, own, possess, or possess for sale, advertise or publish for sale or lease any device, equipment or apparatus, or any instructions, information, plan or kit for such device, equipment or apparatus, or for a printed circuit designed in whole or in part to intercept, decode, descramble or otherwise make intelligible any encoded, encrypted, scrambled or other nonstandard signal distributed by a cable television company.”
Other states have similar laws. Although they are hard to detect, service companies have been fighting back by installing devices that detect usage surges and that can monitor the number of televisions or computers attached through individual houses and apartments. The companies are keeping their detection methods confidential so that they can maintain an edge over those who wish to overcome such safeguards.
Thursday, June 4, 2009
Consumer Safety & Awareness Part 21
Advance Fee Check Scams
In an advance fee-checking scheme, you receive money that you either did not expect or more than you expected. In all cases it is something that has to be cashed such as a check, money order, or traveler’s check. Usually it is made out to you, but occasionally it is already signed and you have to cosign it before it can be cashed. The sender wants you to keep part, perhaps a substantial part, of the check and send the rest to him or someone else.
The item is either counterfeit, stolen, or otherwise not usable. It is good enough for the initial deposit, so that you can get the money, but eventually turns out to be bad. You are then out the money you sent, and have to reimburse the bank. In addition, there is almost always bounced check fees as well as paperwork to explain what happened. Usually the banks ask the police to get a statement. On occasion, the person who cashed the check is jailed. As this scam is getting wider recognition, though, that has become a less likely possibility.
Here are a few examples from Internet sources:
A fake check scam visited a woman in Greeneville, TN when she posted her resume at Craigslist. Soon after, a job offer came knocking on her doors. The offer was from a company that described itself as a ‘work at home’ firm. It said she was selected and also had her first assignment ready. It sent her a check for $3,800.35 together with some instructions.
She was asked to cash the check at her local bank; 10% of the money was hers to keep. She was asked to forward the rest to a woman in Knoxville. She was specifically instructed to use the Western Union wire transfer service to send the money.
The young lady became suspicious and decided to dig deeper. She contacted a branch of the bank that seemed to have issued the check. Officials at the bank told her the account against which the check was issued was a fake and did not exist. This meant she would have been scammed of any money she would have sent after cashing the check.
Another woman was contacted by fraudsters after finding her name at Michigan Talent Bank, an online job site. She was offered a job for performing online work. Since it was an Internet based work, the company said that she would require a computer and an Internet connection at home. However, the company was ready to pay for the computer. It sent her five money orders of $500 each and asked her to cash them at any local bank. Then she was directed to send $2000 from this amount to a vendor who would send the computer to her house after receiving it. She was told that she could keep the remaining $500.
The lady would have been scammed of $2000 if she had sent the money as directed. Some alert employees at her local bank were able to determine immediately that the checks were forged.
There were a couple of things that the lady probably missed and which would have alerted her to the scam early. Firstly, the exercise of asking her to cash company checks and then send some money out of it seems questionable. Why was the company asking her to do it, when it was simpler to do so, on its own? Then, the fact that it was appointing her without conducting an interview should also raise doubts.
If you sell items using online classifieds, beware, this could happen to you too. Two separate incidents from Craven County should alert you to a particular risk involved while selling online by this means.
A woman was trying to sell items on Craigslist for $200 that were sold to a buyer who sent a check for $3,250. This was followed by an e-mail explaining that the check was a mistake as it was posted to the wrong person by the buyer’s accountant. The scammer asked her to accept the check as payment and send back the balance as a return check. Furthermore, he apologized for the trouble and even urged her to help herself to a tip of $50 more for all the hardships.
She did not fall for the scam. In fact she did not even bother depositing the check. She believed the check was made on a common computer printer. She promptly reported the matter to the Sheriff.
The owner of a horse farm in Illinois, placed an ad to sell one of her mares. She then received this curious e-mail (spelling is as in original): “My name is Keth. My client is in terested in buying it. I would like to know the last cost price so that I can proceed further on this, meanwhile my client pay with cashier cheque. Best regards, Mark”
The woman, who’d seen scams before, thought she might play along for fun. Here was her reply. “I’m confused. Is your name Keth or Mark? Anyway, my price on the mare is $1,500. Please let me know if you are interested.”
In no time she received this response. “The price is okay by me, and I want you to know that I have a client who is owing me $6000. I will instruct him to issue you a cheque on my behalf. As soon as the cheque gets to you, I want you to go and cash it immediately and send down my balance through Western Union to my shipping agent. My name is Mark.”
In an attempt to see where Mark was going with his proposal, she wrote him that she would accept only a money order. Mark, who obviously was not a spelling-bee winner, replied. “Thanks for you have instrunct most of my associate about the money order, but they told me they can only pay buy caher chek so don’t worry I will instruct him to issue you 100 percent cather cheque.”
Sure enough, she eventually received a cashier’s check in the amount of $6,000. But she wasn’t naive enough to cash it and forward the proceeds to Mark. First, she called the bank and verified that the check was a counterfeit. Then she sent Mark an e-mail telling him that she’d cashed the check and forwarded the proceeds per his instructions, supplying him with phony Western Union wire transfer information. After Mark made several unsuccessful attempts at collecting his nonexistent funds, she burst his bubble.
“Mark, the check you sent me is no good. You need to get ahold of your client and tell them to have money in the bank next time. I have spent a lot of time with you in this transaction and I would appreciate your still buying the horse.”
It came as no surprise that she never heard from Mark again. In reality Mark wasn’t interested in the horse at all. He simply was trying to get her to cash a phony cashier’s check and send him money.
Microsoft has these seven telltale signs of a scam:
1. You don't know the person who has sent you the message.
2. You are promised untold sums of money for little or no effort on your part.
3. You are asked to provide money up front for questionable activities, a processing fee, or to pay the cost of expediting the process.
4. You are asked to provide your bank account number or other personal financial information, even if the sender offers to deposit money into it.
5. The request contains a sense of urgency.
6. The sender repeatedly requests confidentiality.
7. The sender offers to send you photocopies of government certificates, banking information, or other "evidence" that their activity is legitimate (these are fake).
In an advance fee-checking scheme, you receive money that you either did not expect or more than you expected. In all cases it is something that has to be cashed such as a check, money order, or traveler’s check. Usually it is made out to you, but occasionally it is already signed and you have to cosign it before it can be cashed. The sender wants you to keep part, perhaps a substantial part, of the check and send the rest to him or someone else.
The item is either counterfeit, stolen, or otherwise not usable. It is good enough for the initial deposit, so that you can get the money, but eventually turns out to be bad. You are then out the money you sent, and have to reimburse the bank. In addition, there is almost always bounced check fees as well as paperwork to explain what happened. Usually the banks ask the police to get a statement. On occasion, the person who cashed the check is jailed. As this scam is getting wider recognition, though, that has become a less likely possibility.
Here are a few examples from Internet sources:
A fake check scam visited a woman in Greeneville, TN when she posted her resume at Craigslist. Soon after, a job offer came knocking on her doors. The offer was from a company that described itself as a ‘work at home’ firm. It said she was selected and also had her first assignment ready. It sent her a check for $3,800.35 together with some instructions.
She was asked to cash the check at her local bank; 10% of the money was hers to keep. She was asked to forward the rest to a woman in Knoxville. She was specifically instructed to use the Western Union wire transfer service to send the money.
The young lady became suspicious and decided to dig deeper. She contacted a branch of the bank that seemed to have issued the check. Officials at the bank told her the account against which the check was issued was a fake and did not exist. This meant she would have been scammed of any money she would have sent after cashing the check.
Another woman was contacted by fraudsters after finding her name at Michigan Talent Bank, an online job site. She was offered a job for performing online work. Since it was an Internet based work, the company said that she would require a computer and an Internet connection at home. However, the company was ready to pay for the computer. It sent her five money orders of $500 each and asked her to cash them at any local bank. Then she was directed to send $2000 from this amount to a vendor who would send the computer to her house after receiving it. She was told that she could keep the remaining $500.
The lady would have been scammed of $2000 if she had sent the money as directed. Some alert employees at her local bank were able to determine immediately that the checks were forged.
There were a couple of things that the lady probably missed and which would have alerted her to the scam early. Firstly, the exercise of asking her to cash company checks and then send some money out of it seems questionable. Why was the company asking her to do it, when it was simpler to do so, on its own? Then, the fact that it was appointing her without conducting an interview should also raise doubts.
If you sell items using online classifieds, beware, this could happen to you too. Two separate incidents from Craven County should alert you to a particular risk involved while selling online by this means.
A woman was trying to sell items on Craigslist for $200 that were sold to a buyer who sent a check for $3,250. This was followed by an e-mail explaining that the check was a mistake as it was posted to the wrong person by the buyer’s accountant. The scammer asked her to accept the check as payment and send back the balance as a return check. Furthermore, he apologized for the trouble and even urged her to help herself to a tip of $50 more for all the hardships.
She did not fall for the scam. In fact she did not even bother depositing the check. She believed the check was made on a common computer printer. She promptly reported the matter to the Sheriff.
The owner of a horse farm in Illinois, placed an ad to sell one of her mares. She then received this curious e-mail (spelling is as in original): “My name is Keth. My client is in terested in buying it. I would like to know the last cost price so that I can proceed further on this, meanwhile my client pay with cashier cheque. Best regards, Mark”
The woman, who’d seen scams before, thought she might play along for fun. Here was her reply. “I’m confused. Is your name Keth or Mark? Anyway, my price on the mare is $1,500. Please let me know if you are interested.”
In no time she received this response. “The price is okay by me, and I want you to know that I have a client who is owing me $6000. I will instruct him to issue you a cheque on my behalf. As soon as the cheque gets to you, I want you to go and cash it immediately and send down my balance through Western Union to my shipping agent. My name is Mark.”
In an attempt to see where Mark was going with his proposal, she wrote him that she would accept only a money order. Mark, who obviously was not a spelling-bee winner, replied. “Thanks for you have instrunct most of my associate about the money order, but they told me they can only pay buy caher chek so don’t worry I will instruct him to issue you 100 percent cather cheque.”
Sure enough, she eventually received a cashier’s check in the amount of $6,000. But she wasn’t naive enough to cash it and forward the proceeds to Mark. First, she called the bank and verified that the check was a counterfeit. Then she sent Mark an e-mail telling him that she’d cashed the check and forwarded the proceeds per his instructions, supplying him with phony Western Union wire transfer information. After Mark made several unsuccessful attempts at collecting his nonexistent funds, she burst his bubble.
“Mark, the check you sent me is no good. You need to get ahold of your client and tell them to have money in the bank next time. I have spent a lot of time with you in this transaction and I would appreciate your still buying the horse.”
It came as no surprise that she never heard from Mark again. In reality Mark wasn’t interested in the horse at all. He simply was trying to get her to cash a phony cashier’s check and send him money.
Microsoft has these seven telltale signs of a scam:
1. You don't know the person who has sent you the message.
2. You are promised untold sums of money for little or no effort on your part.
3. You are asked to provide money up front for questionable activities, a processing fee, or to pay the cost of expediting the process.
4. You are asked to provide your bank account number or other personal financial information, even if the sender offers to deposit money into it.
5. The request contains a sense of urgency.
6. The sender repeatedly requests confidentiality.
7. The sender offers to send you photocopies of government certificates, banking information, or other "evidence" that their activity is legitimate (these are fake).
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