The following tips were developed by the North American Securities Administrators Association, Inc. to educate investors and to help them think carefully about online investing.
Before beginning an online investment program, be sure to:
Understand that most likely you are not linked directly to the market through your home computer, and that the click of your mouse does not instantly execute trades or cancel orders.
Determine if the stock quotes and account updates you receive are real-time or delayed.
Check the on-line broker’s ability to get the best price for investors. Most brokerage firms provide this information on their website.
Receive information from the firm to substantiate any advertised claims concerning the ease and speed of online trading.
Obtain information about entering and canceling orders (market, limit, and stop loss), and the details and risks of margin accounts (borrowing to buy stocks).
Get information from the firm about significant website outages, delays, and other interruptions that may affect your ability to execute trades. Make sure that the firm has an alternative way to execute trades.
Review the firm’s privacy and security policies. Determine if your name will be used for mailing lists or other promotional activities by the firm or any other party.
Receive clear information about sales commissions, transaction fees, and conditions that apply to any advertised discount on commissions.
Know how to contact a customer service representative if problems occur. Request prompt attention and fair consideration. Be sure to keep good records to substantiate any problems that may occur.
Contact your local securities division to verify the registration status and disciplinary history (if any) of the online brokerage firm, or to file a complaint, if appropriate.
Saturday, February 9, 2008
What is Phishing?
Phishing is a scam where Internet fraudsters send spam or pop-up messages to lure personal and financial information from unsuspecting victims. To avoid getting hooked:
Don't reply to email or pop-up messages that ask for personal or financial information, and don't click on links in the message. Don't cut and paste a link from the message into your Web browser — phishers can make links look like they go one place, but that actually send you to a different site.
Some scammers send an email that appears to be from a legitimate business and ask you to call a phone number to update your account or access a "refund." Because they use Voice over Internet Protocol technology, the area code you call does not reflect where the scammers really are. If you need to reach an organization you do business with, call the number on your financial statements or on the back of your credit card, or type in the web address yourself.
Use anti-virus and anti-spyware software, as well as a firewall, and update them all regularly.
Don't email personal or financial information.
Review credit card and bank account statements as soon as you receive them to check for unauthorized charges.
Be cautious about opening any attachment or downloading any files from emails you receive, regardless of who sent them.
Forward spam that is phishing for information to spam@uce.gov and to the company, bank, or organization impersonated in the phishing email. You also may report phishing email to reportphishing@antiphishing.org. The Anti-Phishing Working Group, a consortium of ISPs, security vendors, financial institutions and law enforcement agencies, uses these reports to fight phishing.
Don't reply to email or pop-up messages that ask for personal or financial information, and don't click on links in the message. Don't cut and paste a link from the message into your Web browser — phishers can make links look like they go one place, but that actually send you to a different site.
Some scammers send an email that appears to be from a legitimate business and ask you to call a phone number to update your account or access a "refund." Because they use Voice over Internet Protocol technology, the area code you call does not reflect where the scammers really are. If you need to reach an organization you do business with, call the number on your financial statements or on the back of your credit card, or type in the web address yourself.
Use anti-virus and anti-spyware software, as well as a firewall, and update them all regularly.
Don't email personal or financial information.
Review credit card and bank account statements as soon as you receive them to check for unauthorized charges.
Be cautious about opening any attachment or downloading any files from emails you receive, regardless of who sent them.
Forward spam that is phishing for information to spam@uce.gov and to the company, bank, or organization impersonated in the phishing email. You also may report phishing email to reportphishing@antiphishing.org. The Anti-Phishing Working Group, a consortium of ISPs, security vendors, financial institutions and law enforcement agencies, uses these reports to fight phishing.
ID Theft & Mortgage Fraud
The American dream of owning a home is being turned into a nightmare by criminals who are stealing ID's to buy houses and fleece taxpayers out of millions of dollars. Attorney General Mark Shurtleff announced today that 21 people have been charged so far in a scheme that combines mortgage fraud and identity theft to produce what could become the costliest scam in state history.
A Salt Lake grandmother found out someone used her social security number to buy a $143,000 home in Layton. Marla Vandermyde says she has spent her entire life protecting her good name and good credit. "I felt sick and violated. It's devastating that someone can destroy your credit and everything you've worked hard for."
She's not alone. Here are some other examples:
A four-year-old New York girl's social security number was used to purchase a home in Ogden and the defendant received a $3000 check from Ogden for the down payment.
A 17-year-old Tremonton girl fears she will have trouble getting into college after her identity was used to purchase a house.
A Weber County woman's social security number was used to finance six homes, six cars and set up a credit account at R.C. Willey.
"You are at risk if you have a social security number or own a home," says Shurtleff. "We will do everything in our power to protect Utahns and bring the perpetrators to justice."
A joint investigation by the Utah Attorney General's Office, Office of Inspector General for Social Security Administration (SSA) and Office of Inspector General for the U.S. Department of Housing and Urban Development (HUD) has found 87 homes purchased by people using stolen social security numbers. The investigation is continuing and more charges are forthcoming.
"The Social Security Inspector General investigated these cases to protect the identities and social security numbers of U.S. citizens. These cases represent the worst instances of identity theft encountered in Utah," says Agent in Charge Ron Ingleby, Office of Inspector General for the SSA.
Here's how the scheme works: Promoters target illegal aliens to purchase homes with another person's social security number. The buyer pays as much as twice what the property is worth and inevitably loses the home in foreclosure. Since the home is federally insured, taxpayers end up paying for the fraud and the cost of mortgage insurance goes up. Meanwhile, the legitimate holder of the social security number has to spend an enormous amount of time and money to repair their damaged credit.
Victims will likely need to remove $100,000 to $400,000 from their credit reports before they will be able to complete a major transaction like refinancing a home or buying a car. The government has already lost $2.5 million on just a handful of the properties.
"Property flippers and profiteers strike at the very heart of the economic vitality of this country. The recent initiative here in Salt Lake City is an example of HUD's nationwide efforts to combat mortgage fraud and protect America's home buyers and the housing industry," says Special Agent in Charge Rebecca J. Kiser, Office of Inspector General for HUD.
The Federal Trade Commission estimates that one in eight adults-about 175,000 Utahns---have had their identities stolen during the past five years.
Here are some tips that can help you from becoming the next victim:
Do not disclose personal information unless you know how it will be used.
Check your credit report and request a report involving all transactions with your social security number rather than your name.
Ask your bank or credit union to require a photo ID and a password for all transactions from your account.
Here are some ways lenders can prevent problems:
Ask more questions about a customer's background before granting credit.
Check to see that the name, social security number and address are consistent on all reports and applications.
Make sure third-party service providers and their partners have adequate security to protect access to personal data.
A Salt Lake grandmother found out someone used her social security number to buy a $143,000 home in Layton. Marla Vandermyde says she has spent her entire life protecting her good name and good credit. "I felt sick and violated. It's devastating that someone can destroy your credit and everything you've worked hard for."
She's not alone. Here are some other examples:
A four-year-old New York girl's social security number was used to purchase a home in Ogden and the defendant received a $3000 check from Ogden for the down payment.
A 17-year-old Tremonton girl fears she will have trouble getting into college after her identity was used to purchase a house.
A Weber County woman's social security number was used to finance six homes, six cars and set up a credit account at R.C. Willey.
"You are at risk if you have a social security number or own a home," says Shurtleff. "We will do everything in our power to protect Utahns and bring the perpetrators to justice."
A joint investigation by the Utah Attorney General's Office, Office of Inspector General for Social Security Administration (SSA) and Office of Inspector General for the U.S. Department of Housing and Urban Development (HUD) has found 87 homes purchased by people using stolen social security numbers. The investigation is continuing and more charges are forthcoming.
"The Social Security Inspector General investigated these cases to protect the identities and social security numbers of U.S. citizens. These cases represent the worst instances of identity theft encountered in Utah," says Agent in Charge Ron Ingleby, Office of Inspector General for the SSA.
Here's how the scheme works: Promoters target illegal aliens to purchase homes with another person's social security number. The buyer pays as much as twice what the property is worth and inevitably loses the home in foreclosure. Since the home is federally insured, taxpayers end up paying for the fraud and the cost of mortgage insurance goes up. Meanwhile, the legitimate holder of the social security number has to spend an enormous amount of time and money to repair their damaged credit.
Victims will likely need to remove $100,000 to $400,000 from their credit reports before they will be able to complete a major transaction like refinancing a home or buying a car. The government has already lost $2.5 million on just a handful of the properties.
"Property flippers and profiteers strike at the very heart of the economic vitality of this country. The recent initiative here in Salt Lake City is an example of HUD's nationwide efforts to combat mortgage fraud and protect America's home buyers and the housing industry," says Special Agent in Charge Rebecca J. Kiser, Office of Inspector General for HUD.
The Federal Trade Commission estimates that one in eight adults-about 175,000 Utahns---have had their identities stolen during the past five years.
Here are some tips that can help you from becoming the next victim:
Do not disclose personal information unless you know how it will be used.
Check your credit report and request a report involving all transactions with your social security number rather than your name.
Ask your bank or credit union to require a photo ID and a password for all transactions from your account.
Here are some ways lenders can prevent problems:
Ask more questions about a customer's background before granting credit.
Check to see that the name, social security number and address are consistent on all reports and applications.
Make sure third-party service providers and their partners have adequate security to protect access to personal data.
Utah is Number One in Check Scams
Which state leads the nation in consumer complaints over fraud and scams? According to the Federal Trade Commission (FTC), it's Utah, where approximately 35,000 bogus checks are presented at the state's banks and credit unions every month. Of those, approximately half are deposited by Utahns who have been scammed by the bad checks. Not all of the scams originate within the state. Numerous Utahns, for instance, have fallen victim to infamous and ongoing frauds, such as the so-called Nigerian 419 scam, named after the country's phone code.
Tips On Avoiding Motor Vehicle Fraud
Visually inspect the car to see if its condition matches the miles shown on the odometer. Check to see which parts have been replaced. Unscrupulous individuals sometimes use paint to make old parts look newer.
Check the inspection certificate. It will have the date of inspection, mileage at the time of inspection, place of inspection and the inspector's name recorded on it.
Look for lube or maintenance stickers on the left doorframe, in the glove compartment, under the hood, in the trunk, etc. These often contain mileage information.
Check with the manufacturer to see what work was done under the warranty and what the mileage was at the time the work was done.
Check to see if the numbers on the odometer gauge are aligned straight across. If they are crooked, the odometer may have been tampered with.
If the car has a General Motors mechanical odometer, the spaces between the numbers should be black. If they are silver or white, the odometer has been tampered with.
If the car has an electronic odometer, it has been designed to show an asterisk or some other sign if it has been tampered with. Information regarding this will be contained in the owner's manual.
Research the vehicle's title history through the Utah Division of Motor Vehicles, or through a commercial title checking company.
Be suspicious if the vehicle was sold several times in a few months.
Be skeptical of former fleet vehicles with low mileage. These vehicles are driven an average of 32,000 miles per year and are almost never taken out of service early.
Check the inspection certificate. It will have the date of inspection, mileage at the time of inspection, place of inspection and the inspector's name recorded on it.
Look for lube or maintenance stickers on the left doorframe, in the glove compartment, under the hood, in the trunk, etc. These often contain mileage information.
Check with the manufacturer to see what work was done under the warranty and what the mileage was at the time the work was done.
Check to see if the numbers on the odometer gauge are aligned straight across. If they are crooked, the odometer may have been tampered with.
If the car has a General Motors mechanical odometer, the spaces between the numbers should be black. If they are silver or white, the odometer has been tampered with.
If the car has an electronic odometer, it has been designed to show an asterisk or some other sign if it has been tampered with. Information regarding this will be contained in the owner's manual.
Research the vehicle's title history through the Utah Division of Motor Vehicles, or through a commercial title checking company.
Be suspicious if the vehicle was sold several times in a few months.
Be skeptical of former fleet vehicles with low mileage. These vehicles are driven an average of 32,000 miles per year and are almost never taken out of service early.
VIN Number and Car Thieves
The car thieves peer through the windshield of your car or truck, write down the VIN # from the label on the dash, go to the local car dealership and request a duplicate key based on the VIN #. We called Chrysler-Dodge and pretended we had lost my keys they told me to just bring in the VIN #, and they would cut us one on the spot, and we could order the keyless device if I wanted. The Car Dealer's Parts Department will make a duplicate key from the VIN #, and collect payment from the thief who will return to your car. He doesn't have to break in, do any damage to the vehicle, or draw attention to himself. All he has to do is walk up to your car insert the key and off he goes to a local Chop Shop with your vehicle. It IS that easy. To avoid this from happening to you, simply put some tape (electrical tape, duct tape or medical tape) across the VIN Metal Label located on the dash board. By law, you cannot remove the VIN, but you CAN cover it so it can't be viewed through the windshield by a car thief.
Friday, February 8, 2008
Tips to Avoid ID Theft
Report lost or stolen credit cards immediately.
If you applied for a credit card and didn't receive it when expected, call the financial institution.
Sign new credit cards immediately--before someone else does.
Memorize your Social Security number and passwords. Don't use your date of birth as your password and don't record passwords on papers you carry with you.
Never leave transaction receipts at ATM machines, on counters at financial institutions, or at gasoline pumps.
Don't carry your Social Security card or birth certificate--leave them in a secure location.
Don't disclose credit card or other financial account numbers on a Web site unless the site offers a secure transaction. Before you input personal or financial information on a Web page, first make sure the site offers a secure--that is, encrypted--data transaction. There are two ways you can check whether a Web page provides a secure data transaction:
An icon of a lock will appear in the bottom strip of the Web browser page.
The URL for the Web page will change from "http" to "https" for the page at which you input the personal data.
Closely monitor the expiration dates on your credit cards and contact the issuer if you don't receive a replacement prior to the expiration date.
Beware of mail or telephone solicitations that offer prizes or awards--especially if the offeror asks you for personal information or financial account numbers.
Match your credit card receipts against your monthly bills and check your monthly financial statements for accuracy.
Watch for your monthly financial statements and bills. If you don't get them when expected, contact the sender.
If you applied for a credit card and didn't receive it when expected, call the financial institution.
Sign new credit cards immediately--before someone else does.
Memorize your Social Security number and passwords. Don't use your date of birth as your password and don't record passwords on papers you carry with you.
Never leave transaction receipts at ATM machines, on counters at financial institutions, or at gasoline pumps.
Don't carry your Social Security card or birth certificate--leave them in a secure location.
Don't disclose credit card or other financial account numbers on a Web site unless the site offers a secure transaction. Before you input personal or financial information on a Web page, first make sure the site offers a secure--that is, encrypted--data transaction. There are two ways you can check whether a Web page provides a secure data transaction:
An icon of a lock will appear in the bottom strip of the Web browser page.
The URL for the Web page will change from "http" to "https" for the page at which you input the personal data.
Closely monitor the expiration dates on your credit cards and contact the issuer if you don't receive a replacement prior to the expiration date.
Beware of mail or telephone solicitations that offer prizes or awards--especially if the offeror asks you for personal information or financial account numbers.
Match your credit card receipts against your monthly bills and check your monthly financial statements for accuracy.
Watch for your monthly financial statements and bills. If you don't get them when expected, contact the sender.
Wednesday, February 6, 2008
UTAH DIVISION OF REAL ESTATE - FRAUD ALERT
UTAH DIVISION OF REAL ESTATE - FRAUD ALERT
Protect Your License and Career by Avoiding “Investment” Scams
Please be aware and make your employees aware of a dramatic increase in illegal property flipping throughout our state. The scam involves individuals posing as “real estate investors” – offering to purchase single-family homes at inflated prices, promising “guaranteed high rates of return”, falsifying or obtaining fraudulent appraisals to substantiate the artificial values, and reselling or refinancing the homes several times for 150 to 200 percent of the actual value. The scam is most prevalent in areas of new construction and high-end homes, particularly Utah County (Provo/Alpine), Washington County (St. George), and Salt Lake County (Draper).
Identifying and Avoiding Real Estate Fraud
• Properties reported as “sold” or offers to buy at values significantly higher than asking price.
• Property sales history shows many sales with rapid and significant increases in value.
• Buyer purchasing multiple properties in a short period of time (often as owner occupied).
• Appraisal is dated prior to the loan application.
• “Investor” using someone else’s identity and/or credit score to purchase a home.
• Buyers providing false information on employment, credit score, income, or the occupancy of the home.
• REPC does not reflect the “true terms” of the agreement, such as undisclosed addendums.
• Unlicensed persons receiving “consulting fees” for helping “clients” purchase investment properties.
• Buyers and sellers conspiring to artificially inflate the property value and sharing the “profit”.
• Excessive payments to third parties such as unsubstantiated notices of interest or unrecorded second-mortgages.
• Using HUD-1 statements as sales verification for appraisal “comparables”.
State and Federal penalties for fraud include administrative (fines and loss of professional license), civil (liability to private parties), and criminal (up to 30 years in federal prison or $1,000,000 or both).
Complaints may be submitted through the Division’s website at www.realestate.utah.gov.
Protect Your License and Career by Avoiding “Investment” Scams
Please be aware and make your employees aware of a dramatic increase in illegal property flipping throughout our state. The scam involves individuals posing as “real estate investors” – offering to purchase single-family homes at inflated prices, promising “guaranteed high rates of return”, falsifying or obtaining fraudulent appraisals to substantiate the artificial values, and reselling or refinancing the homes several times for 150 to 200 percent of the actual value. The scam is most prevalent in areas of new construction and high-end homes, particularly Utah County (Provo/Alpine), Washington County (St. George), and Salt Lake County (Draper).
Identifying and Avoiding Real Estate Fraud
• Properties reported as “sold” or offers to buy at values significantly higher than asking price.
• Property sales history shows many sales with rapid and significant increases in value.
• Buyer purchasing multiple properties in a short period of time (often as owner occupied).
• Appraisal is dated prior to the loan application.
• “Investor” using someone else’s identity and/or credit score to purchase a home.
• Buyers providing false information on employment, credit score, income, or the occupancy of the home.
• REPC does not reflect the “true terms” of the agreement, such as undisclosed addendums.
• Unlicensed persons receiving “consulting fees” for helping “clients” purchase investment properties.
• Buyers and sellers conspiring to artificially inflate the property value and sharing the “profit”.
• Excessive payments to third parties such as unsubstantiated notices of interest or unrecorded second-mortgages.
• Using HUD-1 statements as sales verification for appraisal “comparables”.
State and Federal penalties for fraud include administrative (fines and loss of professional license), civil (liability to private parties), and criminal (up to 30 years in federal prison or $1,000,000 or both).
Complaints may be submitted through the Division’s website at www.realestate.utah.gov.
IRS Warns of Rebate Scams to Steal Personal Information
By Jim Abrams, Associated Press Writer
WASHINGTON (AP) -- Even before Congress passes an economic stimulus package, identity thieves are using promises of tax rebates to trick people into revealing financial and personal data, the Internal Revenue Service warned Wednesday.
Under one scheme, the IRS said, people are receiving phone calls telling them they can only receive a rebate if they provide bank account information for a direct deposit.
The tax agency stressed that it does not collect information by telephone and that no legislation has been enacted that would allow it to provide advance payments to taxpayers or that specifies the details of those payments.
The House last week, as part of an economic stimulus package, approved tax rebates of $600 and $1,200 respectively for most individuals and couples, with another $300 per child. The Senate is now considering a slightly different version.
The IRS also repeated past warnings of e-mails, supposedly coming from the agency, where people are asked to enter personal information on a form needed to obtain a tax refund.
A new scam, it said, involves an e-mail notification that a person's tax return will be audited with instructions to click on links to complete forms with personal and account information.
Businesses and accountants are also getting e-mails with instructions to download information on tax law changes. Clicking on these links could download "malware" onto the recipient's computer that gives the scammer remote access to the computer hard drive.
In another telephone scam, a caller claims to be an IRS employee who says the taxpayer has not cashed a refund check and asks the person to verify his or her bank account number.
On Tuesday, at a Senate Finance Committee confirmation hearing for Douglas Shulman, the nominee to be IRS commissioner, Sen. Charles Schumer, D-N.Y., expressed concern that taxpayers would be victimized by tax preparers and lenders who charge high interest rates for short-term advances on their stimulus rebates.
The IRS advised people not to click on any link from an e-mail purporting to come from the tax agency. People receiving questionable e-mails can contact the IRS through phishing@irs.gov.
WASHINGTON (AP) -- Even before Congress passes an economic stimulus package, identity thieves are using promises of tax rebates to trick people into revealing financial and personal data, the Internal Revenue Service warned Wednesday.
Under one scheme, the IRS said, people are receiving phone calls telling them they can only receive a rebate if they provide bank account information for a direct deposit.
The tax agency stressed that it does not collect information by telephone and that no legislation has been enacted that would allow it to provide advance payments to taxpayers or that specifies the details of those payments.
The House last week, as part of an economic stimulus package, approved tax rebates of $600 and $1,200 respectively for most individuals and couples, with another $300 per child. The Senate is now considering a slightly different version.
The IRS also repeated past warnings of e-mails, supposedly coming from the agency, where people are asked to enter personal information on a form needed to obtain a tax refund.
A new scam, it said, involves an e-mail notification that a person's tax return will be audited with instructions to click on links to complete forms with personal and account information.
Businesses and accountants are also getting e-mails with instructions to download information on tax law changes. Clicking on these links could download "malware" onto the recipient's computer that gives the scammer remote access to the computer hard drive.
In another telephone scam, a caller claims to be an IRS employee who says the taxpayer has not cashed a refund check and asks the person to verify his or her bank account number.
On Tuesday, at a Senate Finance Committee confirmation hearing for Douglas Shulman, the nominee to be IRS commissioner, Sen. Charles Schumer, D-N.Y., expressed concern that taxpayers would be victimized by tax preparers and lenders who charge high interest rates for short-term advances on their stimulus rebates.
The IRS advised people not to click on any link from an e-mail purporting to come from the tax agency. People receiving questionable e-mails can contact the IRS through phishing@irs.gov.
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