Beware of $12,000 Stimulus Check & Other Scams, Says Kiplinger's

This item from the folks at Kiplinger's caught my attention:

"Will the Treasury Department really issue stimulus checks of $12,000? No—but some con artists would like you to believe so. Crooks miss no opportunity to take your money—and began plotting stimulus-related schemes as soon as the law was passed in February. In “Watch Out for Stimulus Scams,” Kiplinger’s Personal Finance contributing editor Kim Lankford uncovers the most common cons and offers tips to avoid them:

· $12,000 Government Grant. This ad says you can order a CD or access a special Web site that will show you how to get a $12,000 government grant—if you make a small credit-card payment. But the fine print shows that you’re also signing up for recurring credit-card charges that can be tough to get out of. The Better Business Bureau found that people who signed up for this advice were charged as much as $69.95 every month on their credit or debit cards.

· Warning of Stimulus Forfeit. The crook sends an e-mail claiming to be from the IRS, warning that if you don’t respond promptly (often with your bank-account information), you’ll forfeit your stimulus money. The IRS does not contact taxpayers by e-mail and never asks for PINs, passwords, or secret access information for credit cards or bank accounts. If you click on a link in the message, you could be directed to a phishing Web site, which the crook created to collect personal information.

So, how can you protect yourself?
1) File a Complaint. If you’ve received a fraudulent email, file a complaint with the FBI's Internet Crime Complaint Center and the Federal Trade Commission.
2) Do A Company Background Check. Check out companies and learn about recent scams at the Better Business Bureau's Web site.
3) Visit the FBI. Read warnings about e-mail hoaxes and phishing scams on the FBI’s Cyber Investigations Web site." --source Kiplinger's Personal Finance

Here's a link to full article about stimulus scams.

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($)1,000 Reasons for Guarding Your Cell Phone

My father asked me to write this post with 1,000 reasons why we should act promptly after noticing that a cell phone is missing and 1,000 reasons why we should all be careful with our cell phones in public places.

The Scenario: Over the past weekend, my Dad lost his cell phone in a South Beach restaurant. My folks -- who were in town to celebrate my son's Bar Mitzvah -- noticed that one of their cell phones was missing after 10 minutes.

The Action: Immediately, my Dad hit the spin control cycle. He tried to call the phone. But the "new owners" had already turned off the ringer and the calls were going straight to voice mail. My Dad immediately reported the phone missing and had the service terminated.

The Need for Speed Dialing: "The last time we lost a phone, we didn't miss it right away. And in a day and a half, the thieves charged up over $1,000 by calling overseas," my Dad says. Apparently, the number and the phone were quickly peddled to a variety of users. As such, my Dad's cell phone became a traveling pay phone for some dubious entrepreneur. That cell phone hustle gave my father 1,000 reasons for speed dialing when faced with a similar scenario. This time, my parents did not take any chances or waste time hoping that the phone would show up quickly.

The Bottom Line: If you misplace a cell phone in your home, you may have the luxury of playing Hide-and-Seek. In such a private and contained setting, perhaps only the dust mites will eat into your phone bill. But if your cell phone goes MIA in a public setting, take immediate action or else you'll face an expensive game of Tag-You're-It. Here's a great article about lost cell phones from PCWorld: If You Lose Your Cell Phone

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Be Careful on Hotel & Public Computers: Criminal Busted for Major Fraud

If you've ever felt paranoid about checking your personal accounts on a public computer, including a hotel room, your paranoia is well placed. Read this story about a man who lived in luxury by stealing credit card, payroll and banking account info from public computers. Here's the story, which ran earlier this month on PRNewswire-USNewswire.

"Man Pleads Guilty in Complex Computer Fraud Scheme Victimizing Hundreds of Individuals

A Colombian citizen guilty today to a 16-count indictment involving a complex computer fraud scheme victimizing over 600 people, Assistant Attorney General Alice S. Fisher of the Criminal Division and U.S. Attorney Alex Acosta for the Southern District of Florida and U.S. Department of Defense, Defense Criminal Investigative Service and the United States Postal Inspection Service announced today.

R. Alexander Acosta, U.S. Attorney for the SDFL, stated, "Unfortunately, this is not an isolated case. The Internet is an outstanding tool, but it is vulnerable. Criminals like Bonilla use the Internet to steal our banking and personal data, and then our money. When you travel, please think twice before entering personal or financial data on a public computer."

According to the indictment, Mario Simbaqueba Bonilla, 40, alone and in concert with a co-conspirator, engaged in a complex series of computer intrusions, aggravated identity thefts and credit card frauds designed to steal money from payroll, bank and other accounts of their victims. Much of the identity theft activity - initiated by Simbaqueba Bonilla from computers in Colombia - targeted individuals residing in the U.S., including Department of Defense personnel.

Simbaqueba Bonilla used the money to buy expensive electronics and luxury travel and accommodations in various countries, including Hong Kong, Turks and Caicos, France, Jamaica, Italy, Chile, and the United States.

Simbaqueba Bonilla, as outlined in the indictment and the proffer of facts offered at his guilty plea hearing, engaged in a conspiracy that began with illegally installing keystroke logging software on computers located in hotel business centers and internet lounges around the world.

This software would collect the personal information of those who used the computers, including passwords and other personal identifying information the victims used to access their bank, payroll, brokerage and other accounts online. Simbaqueba Bonilla used the data he intercepted from his victims, who were typically guests at hotels throughout the country, to steal or divert money from their accounts into other accounts he had created in the names of other people he had victimized in the same way.

Then, through a complex series of electronic transactions designed to cover his trail, Simbaqueba Bonilla would transfer the stolen money to credit, cash or debit cards and have the cards mailed to himself and others at Pak Mail and other commercial mailing addresses he opened across the country.

Federal agents arrested Simbaqueba Bonilla when he flew into the United States last August. At the time of his arrest, Simbaqueba Bonilla was flying on an airline ticket purchased with stolen funds, and had in his possession a laptop also purchased with stolen funds. That laptop contained the names, passwords, and other personal and financial information of more than 600 people."

Source: Deparment of Justice

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Britney Steals Lighter: Other Items the Rest of Us "Borrow"

Britney Spears has allegedly stolen a lighter from a Chevron gas station store, according to People magazine. She's not alone: Many of us, aware or not aware, have tapped into the five-finger discount. Here's how:



1. Borrowed, but did not return a pen or pencil at a bank, customer service desk or grocery store. For me, this little theft works like this: "May I borrow that for a minute?" I sign the card, check or document and then mindlessly slip the pen or pencil into my pocket. Oooops. I am now making a big effort to return a pen right after I've used it.



2. Buffet extras: Sure it's all you can eat, but not all you can take away. Taking a to-go platter from a buffet is stealing unless you've asked the manager for permission or have paid for take-out. Amy Dacyczyn addresses this issue in the Tightwad Gazette.



3. Condiments and sugar to go. A few restaurants in Florida have a lock-down on their Splenda. When the yellow packets are out on the table, people swipe Splenda by the fistfuls. Putting lots of sugar/sweetener in your coffee is fine, but preparing a sweet take-out package may also qualify as a five-finger discount.



4. Unfair use of children's discounts: It's so expensive to go to out. For example, at Disney, adult prices kick in at age 10 or 11, which means that I pay adult fares for my sons, including my 12-year-old, who still looks very young. But it's wrong to pass kids, teens and tweens off as younger in order to qualify for cheaper tickets for theme parks, movies or other events.



5. Under the radar cable hook-ups or electric connections. A few families were busted in South Florida a few years ago for using a bypass connection for their electricity. Somehow, they were able to rig-up some connection or fix the meter so that they could light up their homes without paying for the juice. Ditto with cable connections. Personally, I prefer to watch tv on the Internet. (How I Get Cable Shows For Free)



6. Jumping the line: When we cut into any line: at a theme park, bank or movie, we are actually stealing time from the people behind us.



7. Goldbricking. Okay, most of us have done this. But if you're shopping on company time or writing the Great American Novel when you should be proofreading a company report, you are stealing time from the company.

Here is another version, with photos, of the alleged lighter theft:
Britney Spears Steals A Lighter From The Gas Station

Here are links to my other Britney stories:



Britney & Celebrity Economics: The Perfume & Cents of Fame

Britney's DIY Haircut & $500 Emergency Funds: My Weird & Frugal News Wrap

Advice for Britney Spears: Go Frugal; Cover Your Assets & Learn from JLo

Off Topic Rant: Leave Britney Alone



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Festive Frauds & Seasonal Scams: A Rundown of Holiday Crimes

From fake e-cards to bogus charitable pitches, there are many of seasonal scams. This list --from the Consumer Credit Counseling Service -- is excellent. The tip about getting anti-hacking firewall software info from Consumer Reports is also excellent. (see below) Feel free to chime in with scams that you have seen.

"Holiday scams are often delivered by bogus e-mails, direct mail or phone calls in order to gain access to personal financial and account information. Consumers can help safeguard their finances with the following tips:

Discard fake e-cards – These e-mails look like a holiday greeting from a family member, friend or well-known company, but these fake messages are simply "phishing" for information by posing as a legitimate communication and then querying the recipient for personal information, which can be used to access financial accounts.

Beware of charity pleas – Scammers capitalize on consumers’ generosity during the holiday season by sending out mass e-mails or placing professional-sounding telephone solicitations, disguised as well-known charities. Don’t be fooled into giving any personal information, such as making a gift via credit card that requires disclosure of card numbers, expiration dates and/or security codes. The best bet: initiate direct contact oneself to make a donation to a trusted charity.

Ensure retail Web sites are secure – When shopping online this holiday season, type in the Web site address rather than following links from an e-mail, which may lead to a bogus site built by a hacker trying to access personal information. Before providing a credit card or other account information to an online retailer, look for a small lock in the lower right-hand corner of the computer screen or an address that starts with https:// instead of http://.

Research before buying — When in doubt, investigate a retailer’s profile through the Better Business Bureau or other credible organization, and do not ever purchase anything from a company unless it has a physical address and phone number.

Watch for false credit card offers – Scammers often try to lure consumers into fake credit card applications – requiring the disclosure of personal data – when they think consumers need it most, such as the holiday buying season.

Seek product guarantees — Purchasing from reputable companies that provide written guarantees and/or warranties helps ensure more worry-free holiday shopping.

Keep good records — Always print receipts for items or services purchased online, including the price, date, time and purchase confirmation number, in case this information is needed later.
Install a firewall — Sensitive information like tax records, bank account information or credit card numbers are often available on one’s personal computer, and online hackers can be quick to access them if an Internet firewall is not installed on the computer.

Visit http://www.consumerreports.org/ for free guidance on firewall hardware and/or software options.
If needed, file a complaint – According to the Federal Trade Commission (FTC) Web site, consumers who suspect a business may have broken the law can file a complaint by calling the FTC toll-free at 1-877-FTC-HELP (1-877-382-4357) or file a complaint online at www.ftc.gov ."


Source: Consumer Credit Counseling Service
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Get a Dog & Other Tips for Making Your Home Unattractive to Criminals

Reduce the curb-side appeal of your home and make it less of a magnet for burglars. That's one of several tips that I received via email from my neighborhood association. The tips were offered by the local police, who interviewed a thief. I featured the suggestions in a recent post.

Bottom Line: A home that is unattractive or unappealing to a robber is important because thieves prefer easy targets.

"Once a burglar has selected a home to burglarize, most will spend no more than a minute trying to break in and less than five minutes inside. " --Kevin Coffey, Author- Active Police Detective - Professional Speaker/President/CEO of Corporate Travel Safety

But in a recent comment, Dawn of Frugal for Life asked: How do you make your home unattractive?

Here are a few answers that I've rounded up.

1. Get a Dog....That's the advice my sister-in-law received from the police after her neighborhood was struck by a series of thefts. The officer told her that a barking dog is actually more protective than an alarm system.

2. Lock all ground-floor doors and windows. Most of the thieves in my neighborhood have entered through unlocked windows and doors.

3. Get an alarm system and post visible stickers announcing the installation of an alarm.

4. Trim or cut back your hedges: A friend of mine loved the look of a lawn lined with tall hedges, but worried that criminals could hide in the bushes. Such fears are justified, according to safety experts.

"Make sure all shrubs and trees are trimmed back so they do not allow a burglar to conceal himself while attempting to open a window or door. If possible, plant bushes with prickly thorns around these locations. They are a cheap deterrent."
--Kevin Coffey, Author- Active Police Detective - Professional Speaker President/CEO of Corporate Travel Safety

Here is an excellent list of tips.
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Captured Thief Provides Anti-Theft Tips to My Neighborhood Association

Several major thefts and home break-ins have kept my neighborhood on edge. The police recently caught the thief. Based on the interrogation of the alleged criminal, the police passed on these tips to our neighborhood association.

I've edited the suggestions for space and format, but the quotes are exact:

• "Anyone can be the victim of a break in to their home by a burglar.


• The general rule: make your home less attractive to the thief.


• Be sure to lock all doors and windows prior to leaving your home.


• If you have an alarm system, make sure you turn it on and use it.


• Remember if you will be away on vacation: Stop mail delivery or have someone pick up the mail for you. Stop the delivery of the daily newspaper. Have an
  automatic timer for a light to go on in the house to give it the look of an
  occupied home.


• If you will be gone for several days or longer, call the Police Department
  and ask for a watch order to be placed on your home, so officers will check the
  perimeter while you are gone."

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Woman Fights Hospital over Missing Foot: Medical Identity Theft Strikes Again!

Medical identity theft is one of the latest scams in the ID crime theft business. BusinessWeek reports that criminals are stealing IDs in order to get expensive medical care. The scenario forces innocent consumers to fight unreal hospital bills.

One woman, for example, had to argue about a missing foot. She flashed her own feet (still attached) to prove that she was not the amputee, who had undergone expensive surgery.

Here's the snippet:

When Lind Weaver opened her mailbox one day in early 2004, she was surprised to find a bill from a local hospital for the amputation of her right foot. Surprised because the 57-year-old owner of a horse farm in Palm Coast, Fla., had never had worse than an ingrown toenail.

After weeks of wrangling with the hospital's billing representatives, Weaver stormed into the medical center and kicked her heels up on the desk of the chief administrator. "Obviously, I have both of my feet," she told him. source: BusinesWeek

Earlier, I wrote this piece about medical fraud.
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Attn Shoppers: Credit Card Security Breach at T.J. Maxx & Marshalls

If you have shopped at Marshalls or T.J. Maxx since 2003, check your credit card and bank statements. The Wall Street Journal reports that credit-card information was stolen from the parent company of those two stores and the theft could hit the security of 40 million credit cards.

You should be concerned about this info theft if --since May of 2003-- you have:


1. Shopped with a credit card at T.J. Maxx, Marshalls and their affiliated stores.

2. Ditto for debit cards

3. Provided those stores with your license number (for a check)

4. Returned merchandise to those stores over that time period.


Here's a link to a preview of the story.

TJX said customer information was stolen from a computer network that handles a wide range of financial information, including credit cards, debit cards linked to checking accounts and transactions for returned merchandise. It didn't provide details of the breach, saying only that it discovered in December that an "unauthorized intruder" accessed its computer systems. Some drivers' license numbers also were stolen. --WSJ

I have shopped at Marshalls during that period. Therefore, I am going to take the steps recommended by the company:

The company urged customers to review their account statements for potential fraud and set up a toll-free number (866-484-6978) for those with questions about the situation. TJX also said it would provide tips on preventing credit- and debit-card fraud and steps customers can take to protect their personal information at www.tjx.com. --WSJ

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