Security and Member Alerts

IRS Warns Taxpayers to Guard Against New Tricks by Scam Artists; Losses Top $20 Million

WASHINGTON – Following the emergence of new variations of widespread tax scams, the Internal Revenue Service today issued another warning to taxpayers to remain on high alert and protect themselves against the ever-evolving array of deceitful tactics scammers use to trick people.

These schemes – which can occur over the phone, in e-mails or through letters with authentic looking letterhead – try to trick taxpayers into providing personal financial information or scare people into making a false tax payment that ends up with the criminal.

The Treasury Inspector General for Tax Administration (TIGTA) has received reports of roughly 600,000 contacts since October 2013. TIGTA is also aware of more than 4,000 victims who have collectively reported over $20 million in financial losses as a result of tax scams.

“We continue to see these aggressive tax scams across the country,” IRS Commissioner John Koskinen said. “Scam artists specialize in being deceptive and fooling people. The IRS urges taxpayers to be extra cautious and think twice before answering suspicious phone calls, emails or letters.”

Scammers posing as IRS agents first targeted those they viewed as most vulnerable, such as older Americans, newly arrived immigrants and those whose first language is not English. These criminals have expanded their net and are now targeting virtually anyone.

In a new variation, scammers alter what appears on your telephone caller ID to make it seem like they are with the IRS or another agency such as the Department of Motor Vehicles. They use fake names, titles and badge numbers. They use online resources to get your name, address and other details about your life to make the call sound official. They even go as far as copying official IRS letterhead for use in email or regular mail.

Brazen scammers will even provide their victims with directions to the nearest bank or business where the victim can obtain a means of payment such as a debit card. And in another new variation of these scams, con artists may then provide an actual IRS address where the victim can mail a receipt for the payment – all in an attempt to make the scheme look official.

The most common theme with these tricks seems to be fear. Scammers try to scare people into reacting immediately without taking a moment to think through what is actually happening.

These scam artists often angrily threaten police arrest, deportation, license revocation or other similarly unpleasant things. They may also leave “urgent” callback requests, sometimes through “robo-calls,” via phone or email. The emails will often contain a fake IRS document with a telephone number or email address for your reply.

It is important to remember the official IRS website is IRS.gov. Taxpayers are urged not to be confused or misled by sites claiming to be the IRS but ending in .com, .net, .org or other designations instead of .gov. Taxpayers should never provide personal information, financial or otherwise, to suspicious websites or strangers calling out of the blue.

Below are five things scammers often do that the real IRS would never do:
The IRS will never:

• Angrily demand immediate payment over the phone, nor will the agency call about taxes owed without first having mailed you a bill.
• Threaten to bring in local police or other law-enforcement groups to have you arrested for not paying.
• Demand that you pay taxes without giving you the opportunity to question or appeal the amount they say you owe.
• Require you to use a specific payment method for your taxes, such as a prepaid debit card.
• Ask for credit or debit card numbers over the phone.

Here’s what you should do if you think you’re the target of an IRS impersonation scam:

• If you actually do owe taxes, call the IRS at 1-800-829-1040. IRS workers can help you with a payment issue.
• If you know you don’t owe taxes or do not immediately believe that you do, you can report the incident to the Treasury Inspector General for Tax Administration (TIGTA) at 1-800-366-4484.
• If you’ve been targeted by any scam, be sure to contact the Federal Trade Commission and use their

To learn more about these simple safety tips, download the fact sheet or visit fico.com

Credit Reporting 101

When was the last time you checked your credit report for accuracy? How do you obtain your credit score? What does your credit report mean to those who lend you money and credit? Not only does your credit report affect your financial life, but it can also affect your career, education, and the interest rates that lenders offer you. Your credit report should make you look as financially attractive as possible. By periodically reviewing your credit report, you can see your payment history, understand how your credit is rated, prevent errors from going undetected, and save delay when you need an accurate credit report the most.

Download the full brochure to learn more! (INFORMATION CONTAINED IN A BROCHURE MAY CHANGE WITHOUT NOTICE. CONTACT US TO OBTAIN THE MOST RECENT VERSION)

Consumer fraud…by phone or mail!

When phone calls and postcards are bringing you marvelous offers to buy…

• “Shares” or “interests” in foreign lotteries
• Low-cost vacations
• Magazine subscriptions
• Office supplies or promotional items
• Club memberships
• Sure-fire investments
• Vitamins

Do they say…
“You’ve just won a contest, and if you pay ‘shipping and handling’ or a ‘small gift tax,’ it’s all yours”?

Do they want…
Your credit card number?

If so, you may be the victim of a boiler room fraud.

Direct marketing vs. boiler room fraud

Direct marketing is the sale of goods and services by direct contact with the consumer, by phone or mail. Boiler room fraud is the use of the phone or the mail by unethical companies that only want to take your money. It is a growing problem for both individuals and businesses, costing consumers billions of dollars a year. The best way to protect yourself is to learn to recognize a fraudulent offer.

What are boiler room companies?

• Their calls are usually from firms located out of state. The firms work out of large rooms with rows of phones, staffed by solicitors trained to repeat a deceptive sales pitch.
• Sometimes they send you an enticing or officiallooking letter or postcard in the mail urging you to call them.
• Often “900” numbers are used, so you’ll be billed just for calling them, even if you decide not to purchase anything.

What do the salespeople say?

• “You’ve been specially selected to hear this offer.”
• “You’ll get a wonderful free bonus if you buy our product.”
• “You’ve won a valuable free prize.”
• “You’ve won big money in a foreign lottery.”
• “This investment is low-risk and provides a higher return than you can get anywhere else.”
• “You have to make up your mind right away.”
• “You can put the shipping and handling charges on your credit card.”

Callers may use well-rehearsed sales pitches designed to sound believable. You may be transferred from person to person, so it sounds like a genuine business setting. A “vice president” may even call you back to try to convince you to buy. Beware of high-pressure pitches that require immediate decisions! Legitimate firms will always give you time to think an offer over.

What if you fall for the boiler room sales pitch?
If you are a victim of a boiler room fraud, you may find: You never receive any “winnings” from the foreign lottery you entered.

• The merchandise you bought is overpriced and of poor quality.
• The “free gift” never arrives, or it’s worth just a fraction of the “shipping and handling” or “gift tax” you paid.
• The investment turns out to be nonexistent or a loser.
• The donation you thought was going to charity goes instead into the fundraiser’s pocket.
• Unauthorized charges start appearing on your credit card bills.
• Con artists call and offer to help you get your money back- for a fee, of course.

How can you protect yourself?

• Hang up!
• Take your time – don’t rush into accepting an offer.
• Don’t buy something merely because you’ll get a “free gift.”
• Get all information in writing before you agree to buy.
• Check out the caller’s record with your state’s Attorney General’s office and the Better Business Bureau.
• Don’t give your credit card or checking account number to anyone who calls on the phone or sends you a postcard.
• Check out a charity before you give them any money. Ask the charity how much of your donation actually goes to the needy party.
• Be extremely cautious about investing with an unknown caller who insists you make up your mind immediately.
• If the investment is a security, check with state officials to see if it is properly registered. If large amounts of money are involved, check with your legal or financial advisor.
• Don’t send money by messenger or overnight mail If you use money rather than a credit card in the transaction, you may lose your right to dispute fraudulent charges.
• Hang up the phone rather than allow yourself to be pressured to buy.
• Make sure you know the per-minute charge for any “900” call you make.
• If it sounds too good to be true, it probably is.

Ask yourself:

• Do I have adequate time to think this over, or am I being pressured for a decision right now?
• Will they send me additional information through the mail, putting their statements and promises in writing, or do they refuse to do so?
• Are they insisting on my credit card or checking account number right now?
• Why do they want to send a private courier tonight for my check?
• Is the free gift or prize they’re promising really free, or do I have to pay a registration fee or shipping and handling charge before receiving anything?

If the answer to any of these questions is yes – BEWARE!

Take time to consider the offer, get additional information and advice, and resist the “take it or leave it” high-pressure tactics so often used in boiler room pitches.

For more information about the firm and the offer you are considering, contact any of the following groups, preferably in the city or state where the firm is located:

• State Consumer Protection Agencies
• Better Business Bureau
• State Attorney General
• Chamber of Commerce
• State Securities Regulator
• Federal Trade Commission
• Federal Bureau of Investigation
• U.S. Postal Inspection Service

If you think you are the victim of a boiler room fraud, save all documentation of the transaction, including postcards, canceled checks, phone bills, credit card statements, and even mailing envelopes. Make detailed notes of your telephone conversations by date and time and write down any important statements made by each person who spoke with you.

If any part of the transaction took place through the U.S. Mail, such as the receipt of promotional literature or a mailed payment, we urge you to contact your nearest Postal Inspector. The Inspection Service ensures the safety, security, and integrity of the U.S. Mail — key elements of the Postal Service’s Transformation Plan. If necessary, your local postmaster can provide the Inspector’s address, or you may write directly to:

Attn Mail Fraud
Criminal Investigati ons Service Center
222 S Riverside Plaza Ste 1250
Chicago IL 60606-6100

Or, you can report fraud online at:
www.usps.com/postalinspectors.

REMEMBER To Monitor Your Credit Report Once A Year!

One of the best ways our members can prevent fraud is to monitor their credit report. Members can get copies of their own credit reports once a year completely free at www.annualcreditreport.com or by calling 1-877-322-8228.

CAUTION: www.freecreditreport.com advertises heavily, but is actually a PAY FOR service.

Additionally, Indiana’s Credit Freeze Law took effect on September 1, 2007. Residents of Indiana can put a freeze on their credit to prevent identity theft. The member has to make a written request mailed to each credit bureau.

Equifax Security Freeze
PO Box 105788
Atlanta, GA 30348

Experian Security Freeze
PO Box 9554
Allen, TX 75013

Trans Union Security Freeze
PO Box 6790
Fullerton, CA 92834-6790

The written request must contain the following information:

• Full name (and former names if applicable)
• Current Address and former address(s) if it has changed in the last 5 years
• Social Security Number
• Date of Birth
• Photocopy of driver’s license, state ID card, or other government issued id
• Proof of current residence such as a phone bill or utility bill

Within 5 days the credit bureau has to have the freeze on your social security number.

Within 10 days of receiving the freeze request, they will supply you with a PIN number and instructions for temporarily or permanently removing a freeze, in case you need to apply for a loan. The credit freeze service is completely free also.

There are government resources and materials to inform the public about identity theft, as well as resources for people who find they are the victim of identity theft at http://www.ftc.gov/bcp/edu/microsites/idtheft/

If you have questions, or need additional information, please feel free to contact your financial partners at First Trust Credit Union during regular business hours at 800-276-6161.

Personal Internet Branch

At First Trust we take security very seriously, employing state of the art measures on multiple levels to protect members who use our electronic services. We now offer an entire set of tools that you control, making yourself even more secure.

PIB, or Personal Internet Branch, is available to all members using our It’s Me 247 Online Banking. The best thing about PIB is that you turn on the features you want, and off the ones you don’t. You have the ability to lock down your account as you see fit.

New features you can utilize and control include:

• Create a username for logging in, instead of your account number
• Set days of the week and times of the day that your account is accessible or inaccessible
• Control the features available, like funds transfers, check requests, loan application, opening new account, viewing cancelled checks, on-line bill pay, and more
• Set maximum dollar amounts of funds transfers allowed
• Set a second password for funds transfers

PIB also comes with Geographic Controls. These allow you to make your account accessible only within the US, only within your state, only within your city, or even only accessible by your own home PC. (This feature is built using IP Lookup and DNS information, and may not work properly for all members, especially those using dial up Internet connections or those accessing their accounts from work or schools)

So look for the new button “Manage My Security” when you log into It’s Me 247 Online Banking.

The IN’s and OUT’s of STRONG Passwords

If you use a computer for anything, you know about passwords. Annoying at best and often frustrating, passwords have become part of our everyday life. The more you do, the more passwords you get.

Passwords serve a very important function. They are the first line of defense for the things we do. But a password is only good and only does its job if it is strong. The best way to define a strong password is to define a weak password. If any of these characteristics apply to your password(s), it is weak:

• Less than eight characters
• Is a word found in a dictionary (English or foreign)
• Common usage words like names of family, pets, friends, co-workers, celebrities, fictional characters, computer terms, web site names, companies, birthdays, phone numbers, etc.
• A pattern of words or numbers like aaabbb, qwerty, zyxwvuts, 123321
• Any of the above spelled backwards
• Any of the above preceded or followed by a number (ex secret1 or 1secret)

So what makes a password strong? It should have the following characteristics:

• Contain both upper and lower case characters (a-z, A-Z)
• Have digits and punctuation characters also (0-9, !, @, $, %, &, etc)
• Not any word in any language, slang, or jargon
• Not based on any personal information

So how do you make a password strong and still be able to remember it? One way is to base it on a song title, book title, or phrase. For example from the phrase “This May Be One Way to Remember” the password “TmB1w2R!” or “tMb1W>r~” could be made. The phrase “Jack and Jill went up the hill” could be the password j&JwuTh!

With so many passwords to remember, you may be tempted to write them down, or use the same password for everything, or avoid changing your password. Passwords should be changed at least every 90 days. And you should never:

• Write down your password
• Reveal a password over the phone to anyone
• Reveal a password in an email message
• Talk about your password in front of others
• Hint at the format you make your passwords to others
• Reveal passwords on security forms, questionnaires, or web sites
• Share passwords with family or co-workers
• Store your passwords in an unencrypted electronic format.

If you can’t remember your passwords store them in a strongly encrypted database. There are applications for PCs as well as mobile phones that will let you store your list of usernames and passwords using strong encryptions. But remember to use a strong password on those as well.

Further Reading

Stop into your local First Trust Credit Union Branch TODAY to pick up a copy of the following brochures:

• ID Safe Choice
• 10 Things YOU Can Do To Avoid Fraud
• Credit, ATM and Debit Cards; What to do if they’re lost or stolen
• Deter, Detect, Defend: HOW TO AVOID ID Theft
• Your Access To Free Credit Reports

Consumer Financial Protection Bureau

Learn more about how Consumer Financial Protection Bureau helps to educate consumeers, enforce financial laws and study consumer financial markets to help protect you.

Visit Consumer Financial Protection Bureau.