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Mid-year Fraud Stats Reveal Alarming Trends
in Telemarketing, Internet Scams
WASHINGTON, DC—According to a statistics released today
by the National Consumers League (NCL), during the first six
months of 2005 consumer losses to telemarketing and Internet
scams more than doubled from the average losses reported last
year. From January through June 2005, consumer reports to NCL’s
National Fraud Information Center/Internet Fraud Watch program
indicated that telemarketing fraud victims lost an average of
$4,107, compared to $1,974 in 2004. In Internet fraud, the
increase was even higher: the average loss rose from $895 in
2004 to $2,579 in the first six months of this year.
According to the program’s director, NCL’s Susan Grant, some of
the most costly scams are perpetrated both by telephone and the
Internet: bogus sweepstakes and prizes; phony lotteries and
lottery clubs; and fake check scams. Some scams are starting to
operate together; for example, fraudulent sweepstakes operators
are starting to send the “winners” fake checks for sizeable
amounts as “advances” on their winnings. Victims are instructed
to wire some of the money back to pay “taxes,” “customs fees,”
or other trumped-up charges. When the checks bounce, the victims
owe the money that they wired back to their banks.
According to the new statistics, average losses per victim isn’t
the only thing on the rise; in the first half of 2005, the
number of crooks from outside the United States targeting
American consumers has also climbed. Within Internet fraud, 35
percent of reports emanated from foreign countries, up from 30
percent in 2004; and one-quarter of fraudulent telemarketers
were offshore. Furthermore, the number of foreign crooks is
probably understated, since in 31 percent of the telemarketing
scams and 26 percent of the Internet scams reported, victims had
no idea where the perpetrators were located.
“Unfortunately, more consumers are falling for classic scams
such as the Nigerian money offers and losing thousands of
dollars,” said Grant. “It’s important for consumers to know that
it’s in their power to avoid becoming fraud statistics. Use
caution and common sense, and educate yourself about these
scams.”
Click Here to view the Telemarketing Fraud Report
Click Here to view the Internet Fraud Report
For more
information about the top ten scams and tips to help you avoid
common telemarketing and Internet frauds, visit
www.fraud.org.
Source:
http://nclnet.org/news/2005/fraud_trends_june2005.htm
ID Thieves Preying on Consumers with New Phishing Scam Called
Pharming
During National Cyber Security Awareness Month,
Groups Helping
Consumers Protect Themselves
Washington, DC—In observance of
National Cyber Security Awareness Month in October, the National
Consumers League (NCL) and the National Cyber Security Alliance
(NCSA) have partnered to warn consumers about new computer-based
scams threatening their bank accounts and other sensitive personal
information. The Washington-based advocates are focusing their
efforts on how consumers can protect themselves from the evolving
tactics that are used for online “phishing” scams. Phishing is when
ID thieves trick people into providing their social security
numbers, financial account numbers, PIN numbers, mothers’ maiden
names, and other personal information.
In the newest form of phishing, called
“pharming,” a virus or malicious program secretly planted in a
consumer’s computer hijacks the computer’s Web browser. When a
consumer unknowingly types in the address of a legitimate Web site,
they’re taken to a fake version of the site without realizing it.
Any personal information provided at the phony site, such as
passwords or account numbers, can be stolen and fraudulently used. |
TRAINING
Association of Certified Fraud Examiners
Advanced Computer Aided Fraud Prevention & Detection
.PDF
Brochure
CPE Credits: 16
12/12/2005 - 12/13/2005
Clarion Hotel Tampa Westshore
5303 W. Kennedy Blvd.
Tampa, FL 33609
+1 (813) 289-1950
Room Rate: $79.00 - subject to availability
Hotel Cut-off Date: 11/11/2005
Early Registration Deadline: * 11/14/2005
Tampa Bay Chapter
Dinner
Meetings
January 10, 2006
"T.B.A."
February 7, 2006
"Forensic Science & the Fraud Investigator"
March 14, 2006
"T.B.A."
April 11, 2006
"T.B.A."
7th Annual Fraud & Computer
Crimes Seminar
May 9 - 10, 2006
Ruth Eckerd Hall
1111 McMullen Booth Road
Clearwater, FL 33759
2005 - 2006
OFFICERS &
DIRECTORS
PRESIDENT
Steve
Hooper, CIA, CFE, CCSA
Clerk of the Circuit Court
Hillsborough County, FL
(813) 276-2029 x3703
VICE PRESIDENT
Christine Dever, CPA, CFE
SECRETARY
Kara Preston, CFE
Polk County Sheriff's Office
(863) 499-2400
TREASURER
Laura Krueger Brock, CFE, CPA
Cherry, Bekaert, Holland, LLP
(727) 822-8811
DIRECTOR
Mark Dubina,
CFE
Florida Department of
Law Enforcement
(813) 878-7366
DIRECTOR
Ellen Wilcox, CFE
Florida Department of
Law Enforcement
(727) 298-2482
DIRECTOR
Penny Borjas, CFE, CIA
CHAPTER TRAINING
Wayne Boytim, CFE
City of Tampa,
Internal Audit
(813) 274-7167 |
|
“People want to be able to use their
computers and go online with confidence,” says Susan Grant, Director
of the National Consumers League’s National Fraud Information Center
and Internet Fraud Watch programs. “Phishing, pharming, and other
sneak attacks erode that confidence and need to be combated with all
the tools at our disposal, including educational information about
how people can keep better control of their computers and their
privacy.”
To arm consumers with the information
they need to recognize online phishing and prevent it, NCL is
partnering with the National Cyber Security Alliance to release new
tips that include advice about keeping computers secure from
phishing attacks. The tips are on both the
www.fraud.org and www.staysafeonline.org
Web sites.
“We are happy to partner with the
National Consumers League to work towards our goal to raise
awareness of online scams, such as phishing, and provide consumers
with the tools necessary to protect against emerging attacks,” said
Ron Teixeira, executive director, National Cyber Security Alliance.
“Cyber security is shared a responsibility that requires consumer
and businesses to work together to make the Internet safe for
everyone.”
NCL has released new advice for
consumers about avoiding becoming a phishing victim. Sample tips
from the site include:
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Don’t click on
links within emails that ask for your personal information.
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Never enter
your personal information in a pop-up screen.
-
Protect your
computer with spam filters, anti-virus and anti-spyware software,
and a firewall, and keep them up to date.
In addition to the new phishing tips,
NCL offers a wealth of information about other forms of online and
telemarketing scams at
www.fraud.org.
Source:
http://www.nclnet.org/news/2005/phishing_10132005.htm |
News from the ACFE
Who to
Contact at the ACFE
Each month I will highlight a
different ACFE staff member or department that can help you solve
any issues that may arise. This month we feature the Member Services
Department.
Whether you need to order a product,
change your mailing address, check on a registration to an event or
learn about becoming a CFE, a member service representative (MSR)
can assist you. MSRs are trained to answer almost any question you
may have and to help you in a timely manner.
MSRs are a valuable resource to chapters
because they are readily accessible. If a chapter member asks you a
question you are unsure of a MSR is available to help.
The Member Services Department can be
reached at
memberservices@ACFE.com or +1 (512) 478-9000.
CPE Compliance Deadline November 1
As a reminder, the deadline for
compliance for 2004 CPE requirements was December 31, 2004. The
deadline for CFEs to certify meeting the 2004 CPE requirements was
June 30, 2005. Although there are less than 2000, the remaining CFEs
who have not certified compliance will be suspended on November 1,
2005. To double check your record for 2004 CPE compliance, simply
log on to the Members Only section of ACFE.com. At the top of the My
Account page a message displays your CPE certification status.
If you have any questions, please
contact Devon Silverman Ryan by
email or 1-800-245-3321/+1 (512)478-9000.
Featured ACFE Product
Vertical Computer Case
This product has become one of the
ACFE's hottest selling items. This functional business bag is
perfect for professionals on the go. With a padded computer
compartment, this versatile PolyCanvas briefcase has hideaway
backpack straps, a detachable adjustable shoulder strap and an
organizer for business accessories. Embroidered with the ACFE seal,
this computer case is perfect for today’s fast-paced business
environment. Fits up to a 15" standard laptop.
Many of you may remember this bag
from the Annual Fraud Conference in Las Vegas. You can see this item
at the
ACFE Bookstore on the web. |
Chapter News
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Providing Service to our Community |
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Lillian Conrad spoke to
U.S.F. students last month about her career in fraud
investigation. The student enjoyed the great stories, asked
lots of questions and learned a lot about the real world. |
Tampa Bay Chapter
representatives Gary Chapman and Wayne Boytim present a
donation of $500 to the Tampa Police Explorers (Captain Joe
Nemeth, Lt. Daniel Dillard and Corporal Korin Walker) at their
weekly meeting. The Tampa Police Explorers is a group of young
people ages 14-21, who have an interest in learning about law
enforcement as a possible career. Explorers learn about the
law, court procedures, police patrol techniques and
organizational skills.
|
 The Tampa
Bay Chapter congratulates local chapter member Sherrie Slom for recently passing
the CFE exam. Sherrie joined the chapter two years ago. |
Dinner Meeting News
(NOTE: Our next Dinner Meeting is scheduled for January 10,
2005.)
October 18th Dinner Meeting
 Patricia (Patte)
Plount, President, Positive Reflections, has been fighting credit error for more than
10 years. A victim of mistaken identity in
1993, Patte soon discovered there was no help
available to resolve credit error. No one believed the credit
bureaus could make a mistake. A need developed for a company to
work with consumer rights regarding the proper reporting of
credit....and so began Positive Reflections.
Patte was working on Identity
Theft Resolutions, before it had a name. We called it
"fraud". Again no one believed this could happen,
until it happened to some high profile people. Now Patte resolves
credit problems associated with identity theft and provides
information to law enforcement that can and has assisted the
police in the apprehension of the criminal.
Patte’s presentation on the battle on Identity Theft and credit
restoration clearly demonstrated her knowledge about the subject.
She announced that she would not be providing too many tips on
fraud prevention; however, she gave us much needed information on
Identity Theft for both individuals and businesses. Everyone in
attendance was given an ID Theft booklet from which Patte said
would start everyone with their own ID Theft resolutions should
they become victims. Patte made it clear that the first and most
common misconception about ID Theft is that it is easy to fix.
However most people do not know that they are a victim until they
are notified months or even years later due to a credit error. Not
all credit errors are the result of an unlawful act but sometimes
an honest mistake by a person or the computer. For example, your
credit could be affected if you have the same first and last name
as your mother or father, or if your social security number is
similar to another person. Although this isn’t fraud, it is
extremely difficult to remedy.
The new trend now is ID Theft insurance or fraud guard. A
multitude of companies, such as Prepaid Legal Services and
Citibank, offer this protection. Patte said that receiving
compensation from these offers can prove to be difficult unless
the crime is specifically documented, to include your time and
money loss. In other words, they’ll give you the money if you
incurred a loss to fix the problem. For example, copious
documentation of your time off from work to drive to and from the
police department and documentation from your supervisor that you
were unable to work certain hours because of your time on the
telephone with creditors could be considered a monetary loss.
Patte advised that she begins her investigations from the credit
standpoint which allows her to find the exact date the credit was
compromised. She mentioned that at most police departments,
victims may get hesitation from officers because of a
jurisdictional issues and lack of documentation. Policies at many
departments require some form of records to begin an
investigation. In some cases, the only way a victim knows that
they have been a victim is when they are declined credit, however
they have no credit report in hand to confirm this.
Patte takes care of the necessary steps for any victim to include
but not limited to: filing fraud alerts on the person’s credit,
calling creditors on the victim’s behalf via a Power of Attorney,
and acting as a liaison between the victim and law enforcement.
Her interaction is helpful because ironically in many cases, the
creditors who have advised victims that they are in fact victims
refuse to release any information to the victim because the
purchaser is not them.
75% of Identity Theft starts where we willingly give our
information to banks, medical facilities, creditors, utility
companies, telephone companies, and a host of others. This is
because of two reasons: companies have not been held accountable
for the way the information is handled and disposed of and because
employees are not screened properly or trained on what to do with
the information. If you own a company, it is your responsibility
to see that personal information is properly contained and
disposed of, especially around accountants and bookkeepers. The
bottom line is protect yourself and be stingy with who you give
your information to. However if you do become a victim, call your
local law enforcement and Patte.
For more information visit
www.ftc.gov.
Special Guests: Rich Brody (U.S.F., St. Petersburg) brought his
graduate students to the October meeting.
From left to right: Tara Hetzel, Mark Owen, Karen Osbourne, Hiroko
Jewell, Melissa Gulley (behind Hiroko),
Joe Woss (behind Melissa), Ann Fruchtman (front row), Tiffany
Gorman (behind Ann), Val Kimball,
Ed Christy, Rich Brody and Marc Fraietta
Submitted by: Kara Preston, Chapter Secretary |
President's Message
I am sorry I missed the last meeting but according to Christine
Dever (who admirably stood in for me) the meeting was fantastic. A
special thanks to our speaker Patte Plount, President, Positive
Reflections, who gave an interesting insight into Identity Theft
Resolutions.
We again showed our appreciation to our first time attendees,
Mary Hinkle, Gary Hinkle, Michael Capozzi, Susan O'Day, Marc
Fraietta, Steve Nagy, Jacqueline Biro and Terri McGinnis and our newest CFE, Sherrie Slom. We
recognize them to say thanks for taking their first step
into this dynamic profession.
Here is a note of interest from the Association. They have just
release that the association has now reached 35,000 members
worldwide. This is an accomplishment that each of you can take pride
in because you help contribute to the growth of our chapter and the
association. While you may not help someone fill out an application
form, you contribute in so many different ways. Seeing your
participation in the chapter’s monthly meetings may have inspired
someone to join. Every time you make a presentation to other
organizations or higher education institutions, it may turn people
towards the ACFE and ultimately, to our chapter. Would being the
first CFE in your office be the catalyst needed for your coworkers
to join us?
Our next dinner meeting will not be until January 10th, 2006. Until
then, on behalf of the officers and directors of your chapter, let
me wish each of you a very happy and safe holiday season.
Steve Hooper |
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