In the hope of preventing our Members from becoming victims of monetary scams, we will continually update this section with recent examples of attempted fraud that have involved IBM Southeast EFCU or our Members.

Look out for new Grant Scams...

IRS 2008 Dirty Dozen Tax Scams...

Help us combat Check Fraud and Identity Theft...

Don't get caught by a phishing scam...

Know who you're dealing with before giving out personal info...

Be cautious if you receive a check for more than the purchase price...

Beware of official-looking lotteries and sweepstakes...

Look out for this email scam where someone needs your help...

WHAT SHOULD I DO IF I RECEIVE A SCAM LETTER?



The Better Business Bureau urges consumers to look out for new Grant scams:

1. Phishing
Phishing is a tactic used by Internet-based thieves to trick unsuspecting victims into revealing personal information they can then use to access the victims’ financial accounts.   These criminals use the information obtained to empty the victims’ bank accounts, run up credit card charges and apply for loans or credit in the victims’ names. Phishing scams often take the form of an e-mail that appears to come from a legitimate source. Some scam e-mails falsely claim to come from the IRS.   To date, taxpayers have forwarded more than 33,000 of these scam e-mails, reflecting more than 1,500 different schemes, to the IRS.   The IRS never uses e-mail to contact taxpayers about their tax issues.   Taxpayers who receive unsolicited e-mail that claims to be from the IRS can forward the message to a special electronic mailbox, phishing@irs.gov, using instructions contained in an article titled “How to Protect Yourself from Suspicious E-Mails or Phishing Schemes.”  Remember: the only official IRS Web site is located at www.irs.gov.  To view the article, visit www.irs.gov/individuals/article/0,,id=155344,00.html.

2.  Scams Related to the Economic Stimulus Payment
Some scam artists are trying to trick individuals into revealing personal financial information that can be used to access their financial accounts by making promises relating to the economic stimulus payment, often called a “rebate.”  To obtain the payment, eligible individuals in most cases will not have to do anything more than file a 2007 federal tax return.   But some criminals posing as IRS representatives are trying to trick taxpayers into revealing their personal financial information by falsely telling them they must provide information to get a payment.  For instance, a potential victim is told by phone or e-mail that he or she is eligible for a rebate but must provide a bank account number, or similar information, to get the payment.   If the target is unwilling, the victim is then told that he cannot receive the rebate unless the information is provided.   Individuals should remember that the only way to get a stimulus payment is to file a 2007 tax return.  The IRS urges taxpayers to be extra-vigilant.   The IRS will not contact taxpayers by phone or e-mail about their stimulus payment.

3.  Frivolous Arguments
Promoters of frivolous schemes encourage people to make unreasonable and unfounded claims to avoid paying the taxes they owe.   Most recently, the IRS expanded its list of frivolous legal positions that taxpayers should stay away from.   Taxpayers who file a tax return or make a submission based on one of these positions on the list are subject to a $5,000 penalty.   The most recent update of the list of frivolous positions includes: misinterpretation of the 9th Amendment to the U.S. Constitution regarding objections to military spending, erroneous claims that taxes are owed only by persons with a fiduciary relationship to the United States, a nonexistent “Mariner’s Tax Deduction” related to invalid deductions for meals and the misuse of the fuel tax credit.   The complete list  of frivolous arguments is on the IRS Web site at www.irs.gov/taxpros/article/0,,id=159853,00.html.

4.  Fuel Tax Credit Scams
The IRS is receiving claims for the fuel tax credit that are unreasonable.   Some taxpayers, such as farmers who use fuel for off-highway business purposes, may be eligible for the fuel tax credit.  But some individuals are claiming the tax credit for nontaxable uses of fuel when their occupation or income level makes the claim unreasonable.   Fraud involving the fuel tax credit was recently added to the list of frivolous tax claims, potentially subjecting those who improperly claim the credit to a $5,000 penalty.

5.  Hiding Income Offshore
Individuals continue to try to avoid paying U.S.taxes by illegally hiding income in offshore bank and brokerage accounts or using offshore debit cards, credit cards, wire transfers, foreign trusts, employee leasing schemes, private annuities or life insurance plans.   The IRS and the tax agencies of U.S. states and possessions continue to aggressively pursue taxpayers and promoters involved in such abusive transactions.

6.  Abusive Retirement Plans
The IRS continues to uncover abuses in retirement plan arrangements, including Roth Individual Retirement Arrangements (IRAs).  The IRS is looking for transactions that taxpayers are using to avoid the limitations on contributions to Roth IRAs. Taxpayers should be wary of advisers who encourage them to shift appreciated assets into Roth IRAs or companies owned by their Roth IRAs at less than fair market value.   In one variation of the scheme, a promoter has the taxpayer move a highly appreciated asset into a Roth IRA at cost value, which is below annual contribution limits even though the fair market value far exceeds the amount allowed.

7.  Zero Wages
Filing a phony wage- or income-related information return to replace a legitimate information return has been used as an illegal method to lower the amount of taxes owed.   Typically, a Form 4852 (Substitute Form W-2) or a “corrected” Form 1099 is used as a way to improperly reduce taxable income to zero.   The taxpayer also may submit a statement rebutting wages and taxes reported by a payer to the IRS. Sometimes fraudsters even include an explanation on their Form 4852 that cites statutory language on the definition of wages or may include some reference to a paying company that refuses to issue a corrected Form W-2 for fear of IRS retaliation. Taxpayers should resist any temptation to participate in any of the variations of this scheme.

8.  False Claims for Refund and Requests for Abatement
This scam involves a request for abatement of previously assessed tax using Form 843, “Claim for Refund and Request for Abatement.”  Many individuals who try this have not previously filed tax returns.   The tax they are trying to have abated has been assessed by the IRS through the Substitute for Return Program.   The filer uses Form 843 to list reasons for the request. Often, one of the reasons given is “Failed to properly compute and/or calculate Section 83-Property Transferred in Connection with Performance of Service.”

9.  Return Preparer Fraud
Dishonest tax return preparers can cause many problems for taxpayers who fall victim to their schemes.   These scam artists make their money by skimming a portion of their clients’ refunds and charging inflated fees for return preparation services. They attract new clients by promising large refunds.   Some preparers promote the filing of fraudulent claims for refunds on items such as fuel tax credits to recover taxes paid in prior years. Taxpayers should choose carefully when hiring a tax preparer, especially one who promises something that seems too good to be true.

10.  Diguised Corporate Ownership
Some people are going as far as forming domestic shell corporations in certain states for the purpose of disguising the ownership of a business or financial activity.   Once formed, these anonymous entities can be used to facilitate underreporting of income, non-filing of tax returns, engaging in listed transactions, money laundering, financial crimes and even terrorist financing.   The IRS is working with state authorities to identify these entities and to bring the owners of these entities into compliance.

11.  Misuse of Trusts
For years, unscrupulous promoters have urged taxpayers to transfer assets into trusts. They promise reduction of income subject to tax, deductions for personal expenses and reduced estate or gift taxes.   However, some trusts do not deliver the promised tax benefits.   As with other arrangements, taxpayers should seek the advice of a trusted professional before entering into a trust.

12.  Abuse of Charitable Organizations and Deductions
The IRS continues to observe the misuse of tax-exempt organizations. Misuse includes arrangements to improperly shield income or assets from taxation, attempts by donors to maintain control over donated assets or income from donated property and overvaluation of contributed property.   In addition, IRS examiners are seeing an upturn in instances where taxpayers try to disguise private tuition payments as contributions to charitable or religious organizations.

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Please help us combat Check Fraud and Identity Theft and protect you from suffering a financial loss:

If you can answer Yes to any of the following questions regarding a Cashier's or Official Check you intend to deposit, please notify your Teller or Member Service Representative immediately.

• Do you have any reason to suspect that this check is not valid?
• Have you recently advertised something for sale or purchased something over the Internet? If so, is this check payment for that item?
• Have you been asked to wire, or otherwise return, a portion of the funds back to the sender or some other third party?
• Have you recently received an e-mail or letter stating you have won a sweepstakes or lottery? Are they claiming that all you need to do to collect your prize is provide them with your account number and other personal information so they can wire the funds into your account?
• Have you recently accepted a job offer over the internet and received a payroll advance by check, or were asked for your personal information in order to process a wire into your account? Were you asked to return a portion of the payment for tax purposes?

Please be advised: If a Cashier’s or Official Check is returned as a counterfeit or forgery, the Credit Union will have no choice but to hold you liable for the loss. Your assistance in the prevention of Check Fraud and Identity Theft is greatly appreciated. Please let us know if you have any questions or need more detailed information.

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Don't get caught by a phishing scam:

Phishing, also called carding, is an Internet scam that uses fraudulent e-mails to deceive consumers into disclosing their credit card numbers, bank account information, and other sensitive information.

Internet scammers send deceptive e-mails pretending to be from a company the victim has a relationship with. The e-mail requests that the recipient update or validate his billing information in order to keep his account active. The e-mail directs the victim to a look-alike Web site of the business, tricking him into responding to what looks like a legitimate request. The victim unknowingly submits his financial information to the scammers, who use it to make purchases and obtain credit.

Click here for examples of recent phishing scams targeting Credit Union Members.

If you get an e-mail warning you that an account of yours will be shut down unless you confirm your billing information, do not reply or click on the link in the e-mail. Instead, contact the company named in the e-mail using a telephone number or Web site address you know to be genuine. IBM Southeast EFCU would never initiate an e-mail asking for your personal information. However, for identification purposes we may request information in response to an inquiry from you. Please call us at (800) 873-5100 or (561) 982-4700 if you feel uncertain about the validity of an e-mail you have received from us.

If you receive a fraudulent e-mail, report the suspicious activity to the FTC by forwarding the e-mail to spam@uce.gov. If you believe you've been scammed, file your complaint at www.ftc.gov, and then visit the FTC's Identity Theft Web site (www.ftc.gov/idtheft) to learn how to minimize your risk of damage from identity theft.

Visit www.ftc.gov/spam to learn other ways to avoid e-mail scams and deal with deceptive spam.

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Know who you're dealing with before giving out your personal information:

On October 16,2003 a Canadian check of $4840.20 (U.S. value $3669.84) was deposited by one of our Members. IBM Southeast EFCU later received notification that the item was being returned as COUNTERFEIT.

IBM Southeast EFCU contacted our member who stated that she was having a financial hardship and had applied for a Home Equity Loan from an 888 number that she found in a magazine or newspaper. She provided them all her personal information over the phone to obtain a $10,000 loan. When she was informed that she had been approved they told her that she would need to pay the closing costs and she explained that she did not have the funds to do so. They then kindly sent her said check by mail with instructions to cash it at a check-cashing store. When they contacted the Member again to give her instructions on where to send the funds, she told them that she had deposited the check into her Credit Union account. They made a comment to her that she did not follow instructions and she has not heard from that company again.

IBM Southeast EFCU suggested that the Member file with local law enforcement, the U.S. Postal Inspector, the Federal Trade Commission and to contact Equifax to put an alert on her Social Security Number. The Member did not use the funds, so there was no loss to the Credit Union or to our Member!

For more information on reporting a financial crime, please see our Fraud Prevention brochure, Security Tips You Can Identify With.

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Be cautious if a buyer gives you a check for more than the purchase price and requests money back:

With the help of two members of IBM Southeast EFCU's staff, a Member was protected from becoming another scam victim.

The Call Center received a call from the Member inquiring if we could verify a check that he had deposited at the Boca Raton Product Center. The Call Center representative inquired as to why the Member was requesting verification. He responded that he felt uncomfortable about the situation. He had sold something and had been sent a check for $6,000.00. From that money, the purchaser was requesting $3,900.00 back.

The Call Center representative inquired where he was to send the funds and was told Saudi Arabia. The representative immediately informed him that this was most likely a scam and contacted a teller. The Member had already deposited the check and had withdrawn the cash to take to another bank. The teller took over from there and the check, in fact, turned out to be fraudulent. The Member wins and the Credit Union wins!!!!!!

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Beware of official-looking lotteries and sweepstakes asking for personal information:

A fraudulent scam letter from Spain was received in the mail by both a staff member of IBM Southeast EFCU and one of our Members. The letter claimed that the recipient was one of 31 international winners to receive a $615,000 prize. According to the letter, the funds were already deposited with a security company in the recipient's name. To claim the prize, the winner needed only to contact the claims agent from this security company and fill out a form with detailed banking and personal information. These details would give the perpetrators all the information they would need to commit identity theft or account takeover fraud!

This is only one example of the schemes currently being used to swindle unsuspecting individuals. When checking your mailbox and email, keep in mind that if it sounds too good to be true, it usually is!

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Look out for the many versions of this type of email scam where someone needs your help to transfer funds:

BOARD OF TRUSTEES, NIGERIAN NATIONAL PETROLEUM CORPORATION [NNPC] Victoria-Island,Lagos.

FROM THE OFFICE OF: DR. JOHN ABULU (MNIM)

Attn: President/CEO.

BUSINESS PROPOSAL: TRANSFER OF US$25.6 M (TWENTY-FIVE MILLION SIX HUNDRED THOUSAND UNITED STATES DOLLARS) & BUSINESS INVESTMENTS PARTNERSHIP

First, I must solicit your strictest confidence in this transaction, this is by virtue of its nature as being utterly confidential and top secret as you were introduced to us in confidence through the Nigerian Chamber of Commerce, Foreign Trade Division.

I am Dr. John Abulu, the Secretary of the Federal Government of Nigeria Contract Award and Monitoring Committee (CAMC) of the Nigerian National Petroleum Corporation [NNPC]. Sometime ago, a contract was awarded to a conglomerate of Foreign Companies by my committee on behalf of NNPC, the contract was over-invoiced to the tune of US $25.6 Million. This was done deliberately, the over-invoicing was a deal by members of my committee to benefit from the project, we now desire to transfer the money, which is presently in a suspense account of NNPC in the Central Bank of Nigeria (CBN) into an overseas account which we expect you to provide.

We have agreed that the following funds will be shared thus after it has been paid into your account;

    a) 30% of the money will go to you for acting as the beneficiary of the fund.
    b) 10% has been set aside as an abstract projection for reimbursement to both parties for incidental expenses that may be incurred in the course of the transaction.
    c) 60% to us the government officials (which we wish to commence an important business in conjunction with you).

I Would Require

    a) Name and address of Company/Beneficiary
    b) Proforma Invoice/Letter-Head Paper

The above information would be used to make formal applications as a matter of procedure for the release of the money and onward transfer to your nominated account.

It does not matter whether or not your company or you does contract projects of the nature described here, the assumption is that you won a major contract and subcontracted it out to other companies, more often than not, big trading companies or individuals of unrelated field win major contracts and subcontracts to more specialized firms for execution of such contracts.

We have strong and reliable connections and contacts at the Central Bank of Nigeria (CBN) and The Federal Ministry of Finance and we have no doubts at all that this money will be released and transferred if we get the necessary foreign partners to assist us in this deal. Therefore, when the business is successfully concluded we shall through the same connections withdraw all documents used from all the concerned government ministries for 100% security.

We want this money to be transferred to the foreign account which you are going to provide bearing in mind that our civil service code of conduct forbids us from owning foreign company or running foreign account, all expenses regarding the account opening if not already in existence shall be borne by you, all expenses are however reimbursable as already stated above on conclusion of business.

Please acknowledge the receipt of this letter if you are interested.

I wait in anticipation of your co-operation.

Yours Faithfully,
Dr.John Abulu (MNIM)

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WHAT SHOULD I DO IF I RECEIVE A SCAM LETTER?

First, it is important that you do not correspond AT ALL with the persons named in the scam letters. Any contact with the perpetrators puts you at risk of being scammed. Do not reply to their letters, emails, or call them by telephone. If the correspondence is electronic, you can forward the email to the Financial Crimes Division of the U.S. Secret Service at 419.fcd@usss.treas.gov or fax a copy of that letter to (202) 406-5031. If you have been victimized and lost money due to such scams, you should contact your local Secret Service office. Contact information can be found under the U.S. Government section of your local white pages or on the Secret Service's Web site

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