Thinking Money: Save, Invest and Protect Yourself from Fraud Seminar

Financial Capability Month is upon us! Join the experts from AARP, FINRA, the SEC, the Offices of the Insurance Commissioner, Secretary of State, and the Washington State Department of Financial institutions on April 26^th from 9:00 AM-2:15 PM for a free consumer education seminar.  

The seminar will cover:

• How behavioral biases and emotions impact your financial decisions
• Ways to make your money last
• How to spot the red flags in financial scams
• Steps you can take to achieve greater financial security

Space is limited so register early!

Call toll-free (877) 926-8300 or register online at

http://aarp.cvent.com/ThinkingMoneyWA

Money Smart Week April 18-25, 2015

Money Smart Week is here and underway! Money Smart Week was created in 2002 by the Federal Reserve Bank of Chicago. It is a public awareness campaign full of events that teach people how to handle their personal finances in a way that benefits them most. There are Money Smart Week events happening in counties all over Washington State. Here are just a few of the educational events that will be put on during the rest of the week:

• April 21st:
• "Kids & Cash" is a program that gives tips and advice to parents on how to talk to their kids about money and forming responsible money habits
• April 22nd:
• "Navigating Your Credit World" will teach you how to build, repair, and access your credit score                                                                                                     
• "We’re Talking Money!" is an opportunity to get one-on-one assistance with your librarian and explore all the financial resources your library has to offer 
• April 23rd:
• The "Online Banking" class will teach people how to safely and securely pay their bills online 
• "Establishing, Improving and Maintaining Credit" shows people how credit companies calculate credit scores and how consumers can use this knowledge to improve their credit score
• April 24th:
• "Be Money Smart!" is happening in libraries all over the state. This is a display with take-home financial information for consumers, small business owners, and entrepreneurs with information on loans, financial management, investing and job training
• April 25th: 
• "Cyber Theft-How to Protect Yourself" will be giving tips on how to keep yourself safe from identity theft and internet scams
• "Shred Day" is a great opportunity to get all your personal and financial documents shredded on the spot and keep yourself safe from identity theft
• "The Financial Family Fun Fest" is an event for the whole family with crafts for kids and free financial one-on-one signups for the adults.

These are only a few of the great events offered during the rest of Money Smart Week. To see the entire list of events, visit https://chicagofed.org/applications/msw_calendar/public.htm?campaign=14.

DFI Releases Annual Top Threats Facing Investors List

The Washington State Department of Financial Institutions (DFI) and the North American Securities Administrators Association (NASAA) released their annual list of scams likely to trap investors.

Regulators are seeing classic threats to investors morph into new or altered dangers, many fueled by the Internet. Overarching all of these threats are unlicensed agents selling unregistered products to unsuspecting investors.

View the Investment Threats List

Heartbleed Bug - Steps to Take

As you are well aware of by now, an OpenSSL vulnerability called "Heartbleed" was recently discovered that can potentially impact internet communications and transmissions that were otherwise intended to be encrypted.

Many websites have already begun issuing patches and have information posted on their websites addressing the vulnerability and a plan of action. For example,  Google, Facebook, and Yahoo implemented patches to fix the vulnerability.

Even though websites are addressing the problem, consumers should still use caution until the vulnerability has been fully addressed.

Steps to Take:

• Change Passwords after the Vulnerability Has Been Fixed
  Changing passwords is strongly recommended, but only after the vulnerability has been fully addressed. Changing passwords before the vulnerability is fixed could still leave consumers vulnerable. If you have questions whether or not the vulnerability has been addressed for a specific website, check the website for an update or contact the company directly.
• Stay Tuned for Updates
  Closely monitor your email for updates from websites you frequently login to. Many websites are emailing their customers regarding their breach and/or posting information to their website. If you need to change your password, they should inform you.

DFI is working with the financial institutions that we regulate to assist them in implementing patches for the bug.

What To Do If Your Credit Card Has Been Stolen or Hacked

With the recent news of the Target security breach, you may be wondering what steps you should take if your credit card information has been stolen.  Here’s a step by step guide on what to do.

1. Contact your credit card issuer immediately
   Find the contact information for your credit card issuer, whether it’s a bank, credit union or other financial institution, and call them to inform them you’re credit card information has been stolen. Your financial institution has procedures in place on how to handle incidents like this, and they’ll be able to assist you.
    
2. Ask that your card number and PIN be replaced
   Chances are your financial institution will do this anyways, but if they don’t, request that a new card and PIN number be issued.
    
3. Monitor your accounts
   Monitor your financial accounts for any fraudulent behavior. If you notice a charge that should not be there, dispute it right away with your financial institution.
    
4. Monitor your credit reports
   It’s also a good idea to monitor your credit reports to make sure no one is opening new lines of credit in your name. You can request a free copy of your credit report at www.annualcreditreport.com
    
5. Consider credit freezes and fraud alerts
   Depending on the severity of the fraud, you may want to request a credit freeze or fraud alert from the three major credit bureaus. The Washington State Office of the Attorney General has more information about these options at http://www.atg.wa.gov/freeze.aspx

Additional Resources

• Recovering From Identity Theft or Fraud
  Information from the Washington State Office of the Attorney General.
• Credit Card Loss Protection
  Information from the Federal Trade Commission on protection services offered by credit card companies and your $50 liability.
• Target Security Breach Information
  Information for Target customers regarding the breach.

 

 

Scammers Asking You to Pay False Debts via Prepaid Debit Cards

In a new twist on an old scam, fraudsters are calling Washington residents threatening to sue if they don’t pay off a loan debt. The only problem is the person receiving the call never took out a loan.

Here’s how the scam works:

• Scam artists call claiming that you owe money for a debt that you have no recollection of
• They threaten to sue you if you don't pay the debt immediately
• They ask you to pay the debt via a prepaid debit card (such as a Walmart, or Visa card)

Report Fraud
If you receive a call like this, hang up and report it to the Washington State Department of Financial Institutions by filing a complaint at www.dfi.wa.gov or with the Washington State Office of the Attorney General at www.atg.wa.gov

How You Can Give Safely to Typhoon Haiyan Charities

Warnings of charity scams related to Typhoon Haiyan are already making the rounds. That’s because scam artists are notorious for using the latest headlines to try and steal your money. Here are tips on how can give wisely to charities and help prevent fraud.

Before You Give:

• Verify Unsolicited Donation Requests
  You are likely to receive donation requests through Facebook, Twitter, email, and even phone calls. Some of these are legit, some are not. Before giving, do your research. Make sure the charity is registered with the Washington State Secretary of State by visiting www.sos.wa.gov/charities or calling (800) 332-GIVE.
• Be Cautious When Clicking Links in Email, Facebook, and Twitter
  If you receive a link in an email, Facebook post, or Twitter post asking you to donate, be careful when clicking the link. Fraudulent links can be designed to install viruses or take you to an official looking website designed to steal your money.
  
  Make sure the message and link is authentic before clicking on it. Better yet, visit the organization’s website or Facebook page directly instead of clicking the link contained in an email, Facebook, or Twitter post.
• Donate Only to the Official Website
  If you decide to donate to a charity, make sure that you are donating to the official website. A little research can protect you from a scam, as fraudsters have been known to set up fake websites. Again, instead of clicking links, visit the official website directly.
• Give Over the Phone with Caution
  You should also be on guard when receiving requests via the phone. Again, scammers can spoof the phone number that comes in via caller id to look official. If you are interested in donating via phone, say you will call the official organization phone number listed on the organizations website and then hang up.

Ways to Help
If you are looking for ways to help visit the White House’s website at www.whitehouse.gov/typhoon.

File a Complaint
If you have a complaint against a charity or would like to report fraud, contact the Washington State Office of the Attorney General at www.atg.wa.gov.

Advice from Local Fraud Experts on How to Protect Your Money and Information

This past Wednesday, AARP held its annual Scam Jam to a sold out crowd at the Museum of Flight in Seattle.

Scam Jam is an educational event that invites local fraud experts to report on the latest scams they are seeing and offer tips for preventing fraud.

Below are some of the best tips offered this year:

Treat Your Personal Information like Cash – Don’t Give It to Everyone That Asks
If someone is asking for your Social Security Number or other identifying information, think carefully before handing it over.

Unsolicited Free Gifts and Offers Are Almost Always Not Free
Promises of free airline tickets or gift cards almost always come with a catch. If it’s not just an outright scam, companies use promises of free gifts to entice people into high pressure sales seminars.

Watch for Investment Pitches that Target Your Emotions
Scam artists go after your emotions when making their pitch. They will try to get you excited about a product or pull your emotional strings to get you to believe in what they are selling. Think about how you feel when you first fall in love, scam artists are targeting that some emotional feeling.

Develop a Refusal Script Ready for Unwanted Telephone Calls
Stop telemarketers right in the tracks by developing a refusal script for when they call. It could be something is simple as: “Now is not a good time” [click].

What to Do With Text Message Spam

We’ve all received those annoying spam text messages claiming “your account has been compromised” or that “you have won a $100 gift card”, but what should you do with these messages?

Here are the do’s and don’ts of dealing with text message spam.

Do’s

• Do forward the text message to 7726 (SPAM on most keypads). This alerts your cell phone carrier to the spam.  This option works for most cell carriers, including: Verizon, AT&T, Sprint, and T-Mobile.
• Do delete the text message once you have forwarded it to your cell phone carrier’s spam department.
• Do review your cell phone providers spam controls and options.
• Do limit where you post your phone number on the internet. Spammers have been known to use software to troll the internet for phone numbers.

Don'ts

• Don’t reply to the message. Don’t respond to instructions to text “stop” or “no”. Doing so lets the scammers know they have a live, active person.
• Don’t click on links in the text message. They are probably fraudulent.
• Don’t call phone numbers contained in the text message.

In closing, remember most legitimate companies will never ask for your personal information via text message. If you ever question the legitimacy of the text message, just contact the company directly via the contact information you have for them.

Asked To Make A Down Payment For A Loan Using A Prepaid Debit Card? Beware

If you receive a loan offer but are asked first to put money on a prepaid debit card for a down payment, your caution flags should be flying at attention – be careful.

DFI recently issued a consumer alert regarding Cash Advance USA, an unlicensed online lender, who asked a Washington resident to put $250 on a prepaid debit card and then give them the debit card number.

Unfortunately, the consumer did so. Another individual claiming to work for the company then contacted the consumer and requested another $200. The consumer refused.

Ultimately $250 was withdrawn from the prepaid card and no loan was ever obtained.

This is simply a new variation of the old advance-fee loan scam.

Beware of anyone asking you to load money on a prepaid debit card for a loan.

If you are contacted regarding a loan, or are seeking a loan, first make sure they are licensed to do business in Washington by verifying their license with DFI at www.dfi.wa.gov or calling 1-877 RING DFI (746-4334).

Text Message Claiming Your Email Has Been Hacked? Don't Text Back

Blog courtesy of the Federal Trade Commission.

You get a text message claiming your email account has been hacked. The message asks you to text back in order to reactivate your account. Has your account really been hacked, or is this a scam? 

Here’s an example of a spam text making the rounds:

User #25384: Your Gmail profile has been compromised. Text back SENDNOW in order to reactivate your account. 

The scammers who sent that message want to take advantage of your computer security concerns in order to get your personal information. If you’ve received a text message like it, here’s what to do:

• Don’t text back.
Legitimate companies won’t ask you to verify your identity through unsecure channels, like text or email.

• Don’t click on any links within the message.
Links can install malware on your device, and take you to spoof sites to try to get your information.

• Report the message to your cell phone carrier’s spam text reporting number.
If you’re an AT&T, T-Mobile, Verizon, Sprint or Bell customer, you can forward the text to 7726 (SPAM) free of charge.

• File a complaint
with the Federal Trade Commission. Your complaint can help the FTC detect patterns of wrong-doing.

Traveling This Summer? Protect Your Financial Accounts While You Are Away

Hitting the road for a summer vacation? Before you head out the door, here a few things you should do to protect your financial accounts while out of town.

Only Carry the Cards You Will Be Using on Your Trip

Lighten your wallet and carry only the debit/credit cards you plan to use on the trip. That way if you lose your wallet, you reduce your exposure risk.

Be Wary of Fraudulent ATMs

When traveling out of town, be wary of using ATMs that look a little sketchy. If something doesn’t look right, use another ATM. There have been recent incidents where thieves have installed skimming devices on public ATM machines. It’s also a good idea to shield your PIN code when using a public ATM.

Let Your Credit Card Companies Know If You’re Traveling Overseas

If you are traveling abroad let your bank and credit card companies know. They’ll put a note on your account that you’re traveling abroad. Failing to notify your bank or credit card company may result in your card being declined while attempting to make a purchase overseas.

Review Your Purchases When You Get Back

When you get back from your trip, check your account statements to verify that the purchases are correct. If you suspect a fraudulent charge, contact your bank or credit card company right away.

Beware of Stock Email Scams

The Securities and Exchange Commission and the Financial Industry Regulatory Authority (FINRA) recently issued a warning to investors about a sharp increase in emails linked to "pump-and-dump" stock schemes. These scams are also showing up on Facebook, Twitter, and chat rooms.

A pump-and-dump scheme is a scam that attempts to boost the price of a stock through recommendations based on false or greatly exaggerated statements

Pump-and-dump promoters frequently claim to have "inside" information about an impending development. Others may say they use an "infallible" system that uses a combination of economic and stock market data to pick stocks. 

These scams are the inbox equivalent of a boiler room sales operation, hounding investors with potentially false information about a company.

The investor alert covers how these scams and work and what you can do to protect yourself.

Investor Alert: Don’t Trade on Pump-And-Dump Stock Emails

Protecting Yourself from a Loan Modification Scam

The Washington State Department of Financial Institutions (DFI) has recently issued several consumer alerts regarding unlicensed companies advertising loan modification services to Washington residents.

Homeowners seeking a loan modification should always check the licensing status of companies with DFI before doing business with them.

Tips for Protecting Yourself from a Loan Modification Scam

• Work Only with Licensed Individuals and Companies
  Make sure you’re dealing with a licensed individual. Companies and individuals must be licensed under Washington’s Mortgage Broker Practices Act, or Consumer Loan Act, before offering to modifying your loan, or taking money from you. Verify a license with DFI at www.dfi.wa.gov or by calling 1.877.RING DFI (746-4334).
  
  Some companies claim they do not need to be licensed in Washington because they are licensed in another state. This is not true.
• Work Only with Licensed Attorneys
  Some companies also claim they don’t need a license because there is an attorney involved in the process. That alone is not an exemption from licensing. Attorneys from other states must be licensed to practice law in Washington if they are providing you with legal advice. Verify their law license with the Washington State Bar Association at www.wsba.org.  
• Read and Understand All Documents
  Be sure to carefully read and understand any documents you are asked to sign. Do not sign anything you do not understand.
• Refuse to Allow Direct Access to Checking Accounts or Credit Cards
  Protect your money and refuse to allow direct access to your accounts.
• Consider Your Options
  You can contact your lender yourself to seek a loan modification.
  
  Also, consider taking advantage of free homeownership counseling to see if you qualify for other types of mortgage assistance. Visit www.homeownership.wa.gov for more information.

Investor Alert on Pension or Settlement Income Streams

The Securities and Exchange Commission and the Financial Industry Regulatory Authority (FINRA) have issued an alert regarding pension or settlement income streams.

The alert warns investors about the risks involved when selling their rights to an income stream or investing in someone else’s income stream.

About Income Streams
Anyone receiving a monthly pension or regular distributions from a settlement following a personal injury lawsuit may be targeted by salespeople offering an immediate lump sum in exchange for the rights to some or all of the payments the person would otherwise receive in future.

Typically, recipients of a pension or structured settlement will sign over the rights to some or all of their monthly payments to a factoring company in return for a lump-sum amount, which will almost always be significantly lower than the present value of that future income stream.

The alert includes more information about pension or structured settlement income streams and contains a checklist of questions to ask before selling away an income stream.

View Investor Alert (pdf)

Free Financial Fraud Webinar from AARP - April 23

Join AARP and the North American Securities Administrations (NASAA) association for a free, online interactive financial fraud discussion on Tuesday, April 23, 2013, at 11 am PST.

Financial experts will be on hand to answer your questions about ensuring the security of your nest egg.

Topics to be covered include:

• Spotting common warning signs of a scam
• How to make sure investment products are right for you
• How to perform background checks on your financial professional

You can submit a question in advance by emailing moneywebinars@aarp.org or ask your questions during this live conversation.

Beware Of Debt Collection Scams

Since the beginning of last year, the Washington State Department of Financial Institutions (DFI) has received more than 100 complaints from consumers reporting being contacted by a purported collection company or debt collector attempting to collect on a non-existent debt.

In some cases, the caller has had personal information about the consumer such as name, address, date of birth, and even social security number.

Consumers should be on high alert when receiving a collection call about a debt if the consumer has any question about the validity of the debt.

Beware of Companies Asking You to Pay for Government Mortgage Assistance

If you’re contacted by a company or individual who claims that, for a fee, they can help you receive government-sponsored homeownership relief – beware!

The fact is you don’t have to pay anything to get the benefits of these programs. 

To receive assistance from the nationwide mortgage servicing settlement, Independent Foreclosure Review Program, or the Making Home Affordable Program, you just need to qualify.

Beware of Your Card Has Been Deactivated Text Messages

Chances are that by now you can spot a phishing scam from a mile way. That’s why criminals are taking a new approach to trick you into revealing your bank account information.

Sample SMiShing Attempt

Thieves are targeting you now through a method called SMiShing, similar to phishing but instead of sending emails they send text messages.

How SMiShing Works

You receive a text message that appears to come from your bank. The text message claims that your account has been compromised or that your card has been deactivated. The text message then instructs you to call a phone number, visit a fraudulent website, or respond via text message with personal information. Don’t do it.

Mobile Banking Safety Tips

According to the Federal Reserve, one in five American's used their mobile phone to access their bank account at least once in the past year.

While convenient, there are several safety precautions you should take when banking via mobile.

Password Protect Your Phone/Tablet
Password protect your mobile device when it's not in use to prevent unauthorized access and to protect yourself in case your phone is lost or stolen. Consult the documentation of your device for information on how to set up password protection.