Alerts

Card Deactivation Scams
Mortgage Foreclosure Rescue Scams
Commercial Account Scams
Whaling Scams
Phishing Scams
Vishing Scams
Smishing Scams

Card Deactivation Scam

Many people are receiving a variation of the following message:

• Irregular activity has been detected on your ATM/Check Card.
• For your protection, future authorizations have been suspended, and your card has been deactivated.
• To re-activate your ATM/Check Card, call the (24 hour) Activation Center: (xxx) xxx-xxxx  

This is a scam. You should delete and ignore the message.
Do not respond to the message or call the number.

Note: This Card Deactivation Scam is different from the First American Bank practice of protecting you from unauthorized use of your ATM/debit card. When we authorize you to be contacted by a fraud specialist after a possibly suspicious transaction, they will simply ask you to verify a specific recent purchase. Click here to read more. They will never ask for your PIN number or any other account information. You will not be told your card has been deactivated. As in all financial situations, should you have any concerns or questions, please contact First American Bank.

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Mortgage Foreclosure Rescue Scam

According to the Federal Trade Commission, firms engaged in foreclosure rescue scams promise consumers a way out, typically for a few thousand dollars. Although there are many varieties of mortgage foreclosure rescue fraud, the common theme is a promise that the consumers’ homes will be permanently saved from the pending foreclosure. Most victims not only end up still losing their home, but also the money they paid to the scammers.

Current prominent frauds:

• Title Transfer: fraudulent operators take title to the homeowner’s property
  1. Even though the homeowner believes he is only signing documents to refinance, in reality, the fraudster ends up with a deed granting ownership of the house. The thief may forge the deed or simply insert the deed into the large stack of documents as part of a purported loan closing.
  2. The fraudster informs the homeowner of the need to temporarily sell the home to the rescue company. The former owner can remain in the home as a renter, and repurchase the house over the next few years. Instead, the fraudster asserts ownership and evicts the former owner. Alternately, the terms of repurchase are so burdensome the scammer knows the former owner will never be able to repurchase.
•  Mortgage Negotiation: fraudulent firms promise homeowners they will save their home from foreclosure by negotiating with the loan servicer

  For a fee, the firm promises to obtain either a temporary decrease in the payment amount or a permanent loan modification. Sometimes they offer a full range of options, including credit counseling, debt negotiation and emergency lending. The homeowner pays for each service. All too often mortgage rescue consultants either do nothing or minimal work—such as calling the bank or mailing a list of refinancing sources they found on the Internet. Ultimately, the fraudster charges thousands of dollars and rarely stops foreclosure. Most victims are not only unable to get their money back, they also lost their homes.

In many cases, the fraudster directs the homeowner to have no further contact with the loan servicer—even though in some instances the servicers will agree to modifications to avoid foreclosure.

In addition, most consumers report they are unable to reach anyone at the fraudulent company to ascertain how the process is going or to complain.

The Mortgage Rescue Fraud Act, which went into effect in 2007, provides homeowners with the following protection:

1. A mortgage rescuer must provide the homeowner with a written contract clearly stating the home is being sold.
2. Prior to the sale, the mortgage rescuer must determine the homeowner has reasonable ability to make rental payments and buy the home back.
3. A homeowner who remains in the home under a rental agreement has the right to cancel the rental agreement at any time.
4. A mortgage rescuer must pay the homeowner at least 82% of the home’s fair market value if the rescue ultimately fails.
5. Mortgage rescue consultants must give homeowners a written contract listing all services the consultant promises to perform.
6. Homeowners’ have the right to cancel a consultant contract at any time.
7. A mortgage rescue consultant cannot accept any payment from the homeowner until all services have been performed.

The Better Business Bureau (BBB) has issued a warning to homeowners that it has received complaints from victims of foreclosure rescue schemes from almost all 50 states. According to BBB reports, individuals whose homes are listed for foreclosure are increasingly being contacted directly. Fraudsters also advertise on the Internet, in local newspapers, with posters on telephone poles, bus stops and flyers distributed door to door.

Beware of anyone who calls or shows up at your door promising to save your home.

If you, or someone you know, are in foreclosure, or behind in mortgage payments and facing possible foreclosure, the attorney general recommends:

• Don’t wait. The longer you wait the harder it can be to find good solutions.
• Call a reputable mortgage foreclosure counselor. There are many non-profit and government agencies who offer advice at no cost or at a nominal fee.
• Be careful. Ask for everything in writing. Take it to an attorney, loan counselor or someone you trust to look it over and make sure the deal is what you were promised.

The Better Business Bureau adds these tips: If you are having trouble paying your mortgage, contact your lender or an attorney for assistance. Before hiring any mortgage foreclosure rescue company, check with your attorney general, real estate commission or better business bureau. You may request a free reliability report by going to www.bbb.org.

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Commercial Account Scam

One of the greatest risks to our customers in today’s banking environment is a fraud loss connected with accepting a counterfeit check in a scam. These scams originated years ago, many in Nigeria, and were directed primarily to individuals. They have evolved considerably and are on the increase.

Recently, businesses being targeted are those attempting to sell something over the Internet. We’ve seen a surge in fraud aimed at businesses which have large dollar equipment for sale over the Internet.

Businesses will typically be dealing with a client they have not met personally. Those conducting dealings outside the United States are more susceptible.

When selling over the Internet exercise caution:

• Scammers ask for wire instructions so they can wire the money to your bank. This means providing your bank account number.

  Do not give out your bank account number and routing number until you are certain that this sale is legitimate.

  If you want to give wire instructions, contact your banker.
  He/she will give you a wire holding number to which the wire can be sent.

• If the person sends you a check, look carefully at the physical check. Is it coming from the company or person that you were corresponding with in your emails? If not, determine on what bank the check is drawn and research a phone number for that bank using a standard or online telephone directory.

  Do not rely on the telephone number listed on the check.
  Call the number listed in the telephone directory and ask to verify the check.

If you are concerned and unable to verify the check, First American Bank’s security department may be able to help determine if this is a legitimate check.

• Much of the time, instead of the promised wire you will receive a check. It may be mailed to the bank for deposit into your account or it may be sent to you directly. This check will typically be for a greater amount than you were expecting.

If your “potential client” makes the request to have the excess amount wired to them, stop! This is where the monetary loss to the customer typically happens.

Always check with First American Bank to see if the check deposited has cleared and if the funds are available.

• The scammer will show interest in your item, indicating they want to buy it with some investigation. This may be a scam.

  If they offer to wire you the funds so you can pay for their inspector to conduct the inspection, be alert.
  
  If they arrange for the inspector, they should pay for the inspection directly; there is no need to wire you the funds.

As always, First American Bank is always there to help their clients with any security questions or issues.

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Whaling Scams

We’ve posted warnings about Phishing. Now there’s a more refined phishing scam to be aware of: Whaling — aimed at the rich and powerful.

In this scam, criminals research the names and e-mail addresses of top executives—often freely available on the Internet. The subsequent e-mails distributed lure these executives into clicking on a link to a Website where malware* is immediately downloaded onto the executive’s computer. *Malware (a blending of the words malicious and software) is software designed to infiltrate or damage a computer system without the owner's informed consent.

One such e-mail sent to thousands of high-ranking executives claims the recipient has been subpoenaed by the United States District Court in San Diego to appear in a grand jury civil case. When the executive clicks on a link purporting to be a copy of the entire subpoena, he/she unwittingly downloads software that sends data to a remote computer.

Another version claims to be from the Better Business Bureau alerting the executives to a complaint filed against their company and posted on a website. Yet another scam claims to have information about an invoice.

One of the tip offs: while the sender’s address may look legitimate, the post office they are sending from often is not disguised. This can be seen if you look at the header information.

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Phishing Scams

Phishing occurs when fraudulent e-mails, appearing to come from a well-known company, ask the recipient to provide, update or confirm confidential information.

Business alert:

First American Bank has received a warning from Equifax regarding current email phishing attempts aimed at businesses.

Equifax is a credit reporting agency utilized by First American Bank to obtain credit reports for loan applicants and to report loan payment history. Phishing attempts have been made on companies that utilize the online delivery channel with Equifax. The companies have reported receiving emails, that appear to be from Equifax, requesting their Company ID, User ID and Password.  Equifax would never ask for this information.  This is a scam. These emails have not been sent from Equifax.  If you receive a similar email, disregard it and do not respond.

Change to tax law e-mail scam: People who operate businesses and accountants are the primary targets here. Individuals are told they can download information regarding changes to the tax law by clicking on links leading to publications. When the individuals click on these links, software is installed on their computer leading to their information being compromised.

We ask all our clients to be alert for these current scams:

• Rebate Phone Call: An individual receives a call from someone indicating they are with the IRS. The caller says the recipient may be eligible for a large rebate. All the individual needs to do is supply the caller with their bank routing number and account number for direct deposit. The caller will warn that if the person does not supply this information there will be no rebate! This is a major feature of scams: the sense of urgency or threats.
• Refund E-mail: An individual receives an e-mail from someone claiming to represent the IRS indicating they are eligible for a tax refund—just click on the link in the e-mail to obtain a refund claim form. This form then requests personal information regarding banking account numbers or credit card information.
• Audit E-mail: Someone claiming to be from the IRS informs an individual they are being audited. This e-mail directs the person to click on links to a form—which requests personal banking information.
• Paper Check: An individual receives a call from someone claiming to be from the IRS. The caller says the individual will be receiving a check, but they need to verify their bank account number first.

Remember: Be very cautious about providing your personal or financial information to anyone you do not know.

Note: First American Bank will never ask for private information by email or unsecured Website.

How to spot Phishing:

• The email and linking website may appear authentic
• You are asked to "update" or "validate" your information
• Often it will threaten some consequence if you don't respond

Steps to avoid being Phished:

• Do not reply to the email, even if it appears urgent
• Do not use the links from the email to open any web page
• Do not call any phone numbers appearing on the email

If you think you've been Phished:

1. Contact First American Bank immediately at your local branch
2. Place a fraud alert on your credit report with the three major credit bureaus. Also request to review your credit reports for suspicious activity at that time

• Equifax: 1-888-766-0008
• Experian: 1-888-397-3742
• Trans Union: 1-800-680-7289

3. Close accounts you believe have been tampered with or opened fraudulently
4. File a complaint with the Federal Trade Commission
5. File a report with local police

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Vishing Scams

Vishing, a term coined from combining “voice” and “phishing”, exploits the public’s trust in landline telephone services. Similar to phishing, the fraudster sends an e-mail indicating the recipient’s bank needs to update certain information. The e-mail cunningly references phishing and identity theft. The twist comes when “for security purposes” the individual is directed to call “one of our personal bankers” at a provided toll free number.  When the individual calls, thinking they are updating the information on their accounts, they actually provide their private information directly to the fraudster.

Vishing is typically used to steal credit card numbers or other information used in identity theft schemes. It is very hard for legal authorities to monitor or trace Vishing.

Be highly suspicious when receiving messages directing you to call and provide credit card or bank numbers. Contact your bank or credit card company directly to verify the validity of the message. Note: do not use telephone numbers provided to you via the e-mail or phone call. Look up the number yourself via online directory or telephone book.

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Smishing Scams

Smishing is derived from combining SMS (protocol used to transmit text messages via cell phones) and the more familiar “phishing”. Almost identical to the phishing scam which uses e-mail, this new tactic exploits mobile banking. The fraudster, disguised as a financial institution, sends a text message requesting personal information such as account numbers or passwords.

Alternately, some messages warn the consumer will be charged unless they take action to cancel
a supposed order by going to a web site. When visited, the site downloads a “Trojan horse” that then steals credit card numbers and other private information.

Some of the new smishing techniques include mobile spyware that once downloaded to a phone can eavesdrop on conversations.

Treat your cell phone with the same level of concern you apply to your website.

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