Bank Alerts Public to Identity Theft and Fraud

            Protection from financial fraud should be a high priority for everyone, knowing a little bit more about possible scams is a way to keep you from becoming a victim. The Stephenson National Bank & Trust seeks to educate consumers about identity theft and the most common kinds of fraud.

Awareness is the key to protecting yourself.

            Every year, both large and small communities are the targets of scam artists who know countless ways to rip people off. The Federal Trade Commission has reported that in the last five years one in eight American adults have experienced identity theft. Fraud prevention takes knowledge and self-awareness; therefore, consumers need to pay extra attention to their daily routines.

Scam Artists have Countless ways to Get your Money

Consumers should be aware of the signs and ask several questions of any individual who asks them to withdraw money from their bank account. When challenged, most con artists will move on to easier targets. In addition to identity theft, the following scams surface on a regular basis:

The Fake Check Scam The perpetrator purchases an item (usually via internet) from the victim, then overpays for it with a fake check & requests the overpayment be refunded in some manner, either by wire or cashier’s check. This has typically been in the thousands of dollars and there is usually some “story” as to why the check is payable for more than the purchase price such as to cover shipping or transportation fees. There are many variations of the fake check scam, but the common thread is that a stranger proposes to send the victim a check and have the victim wire money in return.  Stories may include: someone offering to buy something you advertised for sale, paying you to work at home, or giving you an advance on a sweepstakes you supposedly won. These checks are skillfully altered. Some may even say “Official Check” or “Cashier’s Check.” By the time the check bounces, the victim has already wired the money to the crook. Because bank customers are responsible for the checks they deposit or cash, the victims of these scams are left to repay the bank the money they withdrew against the bad check.

The Bank E-mail Scam Large name banks have been the focus of fraudulent e-mails being circulated nationwide. The e-mail is generically addressed and states that the recipient's account has been suspended because of an outside party that has been involved "with money laundering, illegal drugs and terrorism" or that their account has been frozen until they provide the proper information. The e-mail asks recipients to visit a specific web site or provide personal information, which is then used to access their accounts. Be aware that you should never provide valuable personal information through e-mail and your bank will never request it through e-mail.

Finally, other schemes to look out for are home repair scams, mail order schemes and phony charities. Swindlers deliberately target the older generation because they think many retired persons are lonely, affluent and willing to listen. If you find yourself in a situation with a con artist immediately call the police. Also, inform your bank about the scam, so they can alert others.

Your financial information is private and it is your responsibility to protect it. The Stephenson National Bank & Trust would like consumers to be aware that:

·    Banks will never request confidential information through an unsolicited e-mail.

·    Legitimate financial institutions and service companies never call customers asking for personal information.

·    Bank regulatory agencies, financial institutions and police agencies will never request you to withdraw personal funds as part of an investigation.

·    Anyone that asks for "good faith" money is not trustable. If a deal sounds too good to be true, it usually is.

·    There is no legitimate reason for someone who is giving you money to ask you to wire money back.

·    Just because you can withdraw the money doesn’t mean the check is good, even if it is a cashier’s check.

·    If a stranger wants to pay you for something, insist on cash, a wire transfer or a cashier’s check for the exact amount, preferably from your bank or one with a branch in your area.  If paid by check, do not release the merchandise until you know the check has cleared.

·    If you receive a check from an unknown party, request that your bank call to verify funds with the bank it is drawn off of before it is deposited or cashed.