You receive an e-mail from a gentleman in Nigeria who knows someone
who just died with a large sum of >money in the bank and no legal heirs to
claim the funds. For a small fee, and much
financial information, the person on the
other side will split the money if you help
him get the money out of Nigeria. You
probably know by now that this “Nigerian
Fraud” is an attempt at identification theft.
“The definition of identity theft is to knowingly use or transfer the identification of
another person with the intent to commit
fraud,” says Jennifer Kent, vice president of
account services at ViewPoint Bank in
Plano. “The Identity Theft and Assumption
Deference Act of 1998 brought about and
defined the actual act of identity theft.”
Smart Business talked to Kent about
what consumers can do to reduce the
chances of becoming a victim of identity
theft, as well what steps to take if it does
happen.
What are some of the techniques thieves use
to get your information?
Phishing is one of the most common
forms. Consumers will get an e-mail that
appears to be from their bank requesting
that they log on to the bank’s Web site and
provide personal information. A legitimate
bank would never ask for that information
over the computer.
Often that information is used to obtain
credit card numbers and passwords to
commit fraud. The e-mail will have an
urgent tone too, and consumers think that
their bank is updating its information and
they need to provide it before the bank
closes the account. Many times the e-mail
will have numerous misspellings or awkward wording. The consumer doesn’t
know what to look for and doesn’t know
anything is wrong until a fraudulent charge
shows up on the bill.
The Nigerian fraud runs along the same
lines, as do counterfeit check fraud scams.
Perhaps someone is applying for a job or
selling something on the Internet. The
thieves will offer to send a check for a greater value than the asking price, frequently from a third party, and the seller is
asked to wire the funds back. Of course the
check is worthless.
What steps can consumers and businesses
take to guard against identity theft?
Education is very important. The Federal
Trade Commission and the media often
issue alerts on the latest or most common
fraud schemes. Also, businesses can offer
education on common scams through their
Web sites or in pamphlets made available to
the public. For example, at ViewPoint Bank
we have a page on our Web site devoted to
online fraud and security information.
Next, keep track of checks. Many times
the victim of identity theft starts as a victim
of check fraud. The thief steals information
and that leads to counterfeit checks. If you
have a business — large or small — don’t
have the same person who cuts the checks
also balance the books. It’s very important
to segregate these duties and retain internal
control so that one person is not in total
control and able to pay out on bogus
checks.
How can consumers and businesses protect
their checks?
It’s important to use check stock with
security features such as microprinting,
watermarks and other technologically
enhanced safety features built in so that
when a legitimate check is deposited, the
payee and the receiver know there are
security features that need to be verified.
Another important tip — Do NOT put a
check in your mailbox for the mailman to
pick up. That little red flag tells potential
check-washers that a check may be inside.
They can open the check, chemically wash
the payee’s name and keep the amount the
same so no one knows anything is wrong
until the real payee calls looking for the
payment.
With technology today, we don’t look for
the actual washed check but for the circumstances that surround a washed check.
Does the check smell funny or are there a
bunch of tiny dots on it?
So what should someone do if they fall victim
to identity theft?
First, alert the credit bureau. When you
alert one, all three get the information,
including Equifax, Experian and
TransUnion. Also, alert your local law
enforcement agency and tell them there
may have been a breech of information.
There are tools and resources available
through the FTC and your bank to help prevent identity theft. Working with a fraud
specialist in your bank can teach you what
red flags to look for, and many banks offer
credit report monitoring to help you keep
an eye on your transactions. For those who
think that the resources cost too much
money, keep in mind that the financial and
emotional cost of being a victim just one
time is astronomical.
JENNIFER KENT is vice president of account services at
ViewPoint Bank in Plano. Reach her at (972) 509-2003 or
[email protected].