In the emails from Balboa, the Anonymous poster claimed over Twitter that fraud is alleged due to the bank hiding foreclosure information from federal auditors. There were also other allegations of wrongdoing by the bank made but no specifics were provided.

A former Balboa employee has stated that certain documents were approved to be removed from the internal system because of errors pertaining to flood insurance. The employee stated the bank had approved the file removal so that the mistakes would not be detected by federal auditors. In the emails, employees were apparently discussing the reasoning behind the documentation deletion.

Bank of America did not deny the emails existed but they did take issue with wrongdoing implications. They claim the former employee of Balboa stole the documents and was essentially trying to get press over allegations that were not true. The employee contests he did not steal the documents.

The bank also said they did not send out the letters with the errors. However, another employee of Balboa insists they were sent out with the erroneous information and a subsequent letter was sent to clear up the mistakes.

Bank of America is still waiting for the damaging documents said to be coming from WikiLeaks. Founder Julian Assange has promised these would be available early in the year and would cause much damage to the bank.

Bank of America (NYSE: BAC) Leaks Suggest Fraud and More was created by and is property of American Consumer News.

The tax credits were meant for first-time, legitimate homebuyers. The purpose of the $8000 credit was to stimulate the housing market after the recession. But many who filed were prisoners that had filed a claim or multiple fraudulent claims. Some of the claims were not filed in the correct time period and were not paid out. Overall, the amount of credits sent out incorrectly to individuals totaled more than $28 million. The report stated that a total of 4,608 state and federal prison inmates filed credits and more than 1,200 actually received the tax credit.

According to the report, 174 of the filed claims were completed by paid tax preparers. The state of Florida had a high percentage of fraudulent prison claims with 61% of life sentence prisons receiving the tax credit. Florida Department of Corrections spokesman stated that people in prison can still buy a home and many have families outside of prison. Also, the Florida Department of Corrections provides the IRS with inmate information quarterly. When a prisoner receives a check through institution mail, the prison will contact the IRS to ensure the check is legitimate.

“Additional controls are necessary to address erroneous claims for the credit,” the Treasury’s report stated. “Further, fraudulent and questionable claims processed prior to implementation of controls will need follow-up action by the IRS.”

In addition to the fraudulent prison claims, the report also found the IRS paid out $17.6 million to individuals who purchased their home before the tax incentive program even began. Some 2,555 individuals received the credit despite the supposed strict deadlines. The IRS has stated they have been working on improving their efforts to cut down on fraudulent activities. They plan to review filed claims and ‘recapture’ the fraudulent claims already paid out

Prison Inmates Claimed Homebuyer Tax Credit, $28 Million in Fraud was created by and is property of American Consumer News.

The reason for that these schemes work for the criminals is that there is a lag between the time in which the check is deposited and when it clears the system all the way back to the originating bank. In this manner the bank into which the check is deposited “loans” the money on the genuine-looking check to the one who is cashing or depositing it.

Then the victims do what they are told and forward on the lion’s share of the check to third-party perpetrators. Once the original check bounces and comes back through the system, those who deposited the check are liable for the full amount.

The checks look real. Banks often cannot tell if the checks are real or not. This compounds the problem. Added to this is the fact that banks are required to make the money available to you in 5 to 7 business days. This means that you can take the money out or move it even though the original check is still working its way through the system.

What to watch out for. If you are ever approached by someone who wants to give you a check to deposit from which you pay them a lesser amount and allow you to keep the rest for your trouble, then you should be instantly suspicious. Anyone who does business in this manner has something to hide.

Other tactics include an announcement that you have won a lottery and a check is being sent to you but you need to pay out taxes on the amount. Cash grants are issued via check but there is a processing fee. You have a buyer of something that you are selling and they ask you to take a check for payment and return the overage to them.

Who to contact. Contact your local police agency in order to alert them to what you have witnessed – especially if you have become a victim. You will want to file an official police report that can be used in your defense. This will also alert authorities that the scheme is occurring in the area so that others can be warned about its existence. Then, contact your bank and let them know about the situation, too.

Unfortunately, these fake check schemes are operated for either Canada or other countries around the world, so it is almost impossible to pursue and prosecute those responsible. The best method in protecting yourself is to heed the tips above and question the motives and intentions of those who make these kinds of offers to you. You can also visit www.fakechecks.org to give you additional advice on this topic.

Watch for Fake Check Schemes that Cost You Money was created by and is property of American Consumer News.

These sales people are often recruited by companies looking to hire college or even high school-aged kids whom they send in groups to different neighborhoods around the country. The premise of the causes ranges from supporting charities, paying for a school trip, helping the soldiers fighting overseas, or even just a story about how they are rebuilding their personal lives. The sales people are often known for employing hard-edged sales tactics to sell you magazines. Consumers who feel obligated to purchase these magazines find out a few weeks later that their magazines will never be delivered.

The misleading sales people are usually not properly licensed and can be quite believable, especially by the elderly who want to be helpful. There have even been reported incidents where consumers felt threatened by sales people who became angry and violent, leading to police intervention. Sadly, in many cases, the sales people themselves will find that their employers have taken them advantage them too by requiring long working hours, poor living and traveling conditions, and lowered or withheld wages.

Consumers who encounter such sales representatives can do some things to protect themselves from potential harm and loss of their money.

If someone comes to your home to sell something :

• Make sure you ask for identification. Perhaps once you ask for a sales license and picture identification, the sales person will leave willing. If they can not provide proof of who they are, do not continue the conversation.

• Never let intimidation tactics talk you out of your money. You are not required to make any purchase or donation that you don’t want to make.

• If a sales person does make a visit to your home and you do not feel comfortable or are even threatened by them in any way, contact your local authorities and report the incident. Your information could prevent other people from having to endure the same situation.

• If you have made a purchase and later feel duped by the sales person, you have the right under the laws of the Federal Trade Commission’s Three -Day Cooling Off Rule, to cancel any order that totals over $25 if the purchase was made in their home or outside the seller’s place of business. Sales people should be giving receipts as well as a cancellation option to contact the company. Law requires that a company receiving a cancellation notice has 10 days to refund the money upon receiving the cancellation notice.

Consumers are working harder than ever to get out and stay out of debt. Losing money in a fraudulent sales scheme is not going to help anyone’s finances. Keep an eye out for such scams and if worse comes to worse, don’t answer the door for people you do not know.

Don’t Believe the Door-To-Door Salespeople was created by and is property of American Consumer News.

Protect Yourself From Online Job Scams

If you have lost your job or are simply looking to supplement your income there are steps you can take to protect yourself from falling for a scam.

• Do your homework- Before you even contemplate contacting the company or responding to an ad, take a few moments to see if the company has a rating on the Better Business Bureau. If there is a report on the BBB take note to the number and nature of complaints lodged against them (if any) to get a better feel for the type of business you are dealing with. In addition you can also do an internet search on the company looking specifically both a physical address or business listing to ensure they are a “real” business.  Last but not least see if you can find any reviews or comments on forums from other people who may have worked for or with the company.
• Don’t pay upfront- Many of these fraudulent businesses make their money by requiring you to purchase a product that will “teach” you how to make money. Before you can move on to making thousands of dollars per week you will have to pay for their “secret” tips or strategies to increase your income. It is no secret that 9/10 of these programs are scams.
• Why isn’t everyone doing this- If the job entails doing something so simple that anyone can do it, while earning huge amounts of cash ask yourself, “why isn’t everyone doing it?”. If everyone could make hundreds of dollars taking surveys or stuffing envelopes we would not have to worry about a recession.
• What are the job requirements- While there are companies that do in-house training specific to their job most postings that require no experience or worse -no resume are likely a fraud. Who would hire you to work for them and pay you large amounts of money without knowing your background or work experience? The answer: a company that doesn’t intend to pay you at all.
• Use Common Sense- When it comes right down to it, if a job sounds to go to be true-it probably is, avoid wasting your time on get rich quick schemes and invest that time researching legitimate companies that can offer you “real” employment opportunities.

Too Good To Be True- Beware Of Online Job Scams was created by and is property of American Consumer News.

The latest scam surrounding the recession involves con men sending mail, email, or placing phone calls to alert people of their “services” to get cut in on the piece of the actual stimulus money. Unfortunately, as with many current scams, the websites and marketing materials of the companies look pretty legitimate. Many even feature the image of President Obama  or Vice President Biden on the site. People will see such images and assume that the service and the company is on the up and up.

What Happens in the Scam?
Since many people are desperate for financial help, they will be likely willing to divulge personal information in an effort to get a bit of that stimulus money. The scammers will send out materials that request personal information, including name, address, social security number and banking information. With just a few bits of your your vital information, these con artists can clean out your bank account, open new lines of credit in your name and virtually destroy your present credit rating in a very short period of time. Often this can occur before you even know what happened to you. Also, because some of these scams involve a “service”, many companies will also require some payment of sorts for the help. If you give out your credit card number, you can be charged for way more than a fake service.

How To Protect Yourself
You should never give out your personal information or financial details to any other individual unless you are absolutely sure of the identity of the receivers. It can be very easy for scammers to create very legitimate-looking websites and emails that will lead you to believe they are trust worthy. If you feel unsure about a company’s authenticity, check with the Better Business Bureau for information.

If you think you have already been scammed out of your money or personal information, contact the FTC’s Bureau of Consumer Protection to report the scam.

Be sure to check out your credit card statements carefully each month and make sure there are no fraudulent charges. If you find something that doesn’t make sense, contact your credit card company immediately and report your findings.

Never consider yourself untouchable. Scammers will not discriminate and will be happy to take money from people of all financial status.

Beware of Stimulus Scams was created by and is property of American Consumer News.

With medical advances and ever increasing technology Americans are living longer lives and while the additional years of productivity can improve our quality of life there is also an increase in fraudulent activities targeted at the elderly of our nation. Not all individuals living longer are experiencing the joy of life as they find themselves the victims of various forms of fraud. A common form of fraud that has been on the rise for years is health and Medicare fraud which costs taxpayers and elderly victims millions of dollars each year.

What is health care/Medicare fraud?

Elderly individuals are often targeted by companies selling illegitimate treatments or products aimed at people who are ill or in poor health. Health fraud occurs when companies target vulnerable individuals with offers of illegitimate treatments or products which they claim will help a person in frail health. Since many people suffering from health problems are eager if not desperate to find relief they are more likely to fall for the scams these companies present. Proceed with caution if you or a loved one see the following warning signs of health fraud and remember if it sounds too good to be true it probably is.

• A company or product that claims to cure a disease that is not curable such as cancer.

• Products that are offered only through the mail.

• Products that promise a quick cure or advertises a remedy to help a variety of ailments.

• Presents case histories or testimonials from satisfied customers.

Medicare or Medicaid fraud occurs when there is a deliberate omission, misrepresentation, or false statement made that leads to the misappropriation of Medicare or Medicaid funds. The following acts describe common examples of this type of fraud.

1. Billing for services, procedures or supplies that were never provided or performed.

2. Misrepresentation of the following for the purpose of receiving payment that one is not entitled: the nature of services performed, dates services were rendered, falsified medical records, incorrect data on the provider or recipient of services.

3. Performing medically unnecessary procedures for financial gain.

4. Claims that request more money than necessary.

5. Excessive charges for services or supplies.

To protect yourself or a loved one from Medicare/Medicaid fraud consider the following tips:

• Never loan or use a Medicare card that doesn’t belong to you, be sure to only give the information to a professional providing services.

• Contact local, state and national offices with questions pertaining to services, providers or billing questions.

• Keep copies of all signed documents as well as receipts for services or products received.

Protecting The Elderly From Health and Medicare Fraud was created by and is property of American Consumer News.

In the first part of this series we covered how elderly victims are often targeted or fall victim to telephone or mail fraud. Unfortunately this is only one of several ways in which our older loved ones are victimized. If you have an elderly friend or relative that requires some assistance in day to day living, perhaps from a guardian, personal care program or even a nursing home facility you may find yourself worrying about other types of fraud or abuse. It is sad but true that most times people take advantage of the members of our society that are least able to protect themselves. The following tips and information may be able to help you spot elder abuse or dependent care fraud. By recognizing the signs you may be able to offer a voice to a victim that desperately needs your help.

What is elder abuse and where does it occur?

There are different forms of elder abuse and exploitation each with their own warning signs that are covered below. Most elder abuse occurs where the elder lives, either at home where they receive care from a relative or paid caregiver or in a long term care facility.

Emotional Abuse

There are both verbal and nonverbal forms of emotional abuse that causes emotional pain or distress to the victim.

• Humiliation or ridicule

• Intimidation through yelling or threats

• Ignoring the victim

• Not allowing the victim to socialize with friends or activities

• Terrorizing or menacing the elderly person

Physical Abuse

This occurs when a purposeful use of force against an elderly person results in physical injury or pain.

• Physical indications of restraint.

• Unexplained injuries such as broken bones, sprains or dislocations

• Refusal from caregiver to see or speak to the elder alone

• Overdosing or withholding regular medication

Financial Exploitation

A common form of abuse or fraud among the elderly is financial exploitation where an unauthorized person uses the victims personal funds or property for their own gain.

• Sudden changes in the victims financial situation

• Repeated and significant withdrawals from checking or saving accounts

• Cash or valuable items missing from the elders home or personal property missing in a nursing home environment

• Purchases made that are not likely related to the victim; unnecessary services, goods, etc.

• Failure to pay bills even though there are funds to cover the expenses

• Changes made to legal documents such as wills, power of attorney, etc that appear suspicious in nature

Preventing elder abuse and fraud.

The following tips can help prevent and protect your loved ones from abuse and fraud.

• Pay attention: the warning signs are generally right in front of you, if you suspect abuse or fraud, get involved and report the individuals responsible.

• Monitor elders medication to ensure they are receiving all the medication they need and in the proper intervals.

• Review your loved ones financial records, looking for possible financial abuse. Investigate and follow up on any unusual or suspicious activities or transactions.

• Get involved. In some cases a caregiver may become overwhelmed and the situation can spiral out of control quickly. Visit your loved one often so you can spot a deteriorating situation and offer to stay with the elder so the caregiver can have a break on a regular basis.

Protecting The Elderly From Personal Care or Nursing Home Fraud was created by and is property of American Consumer News.

But if someone does steal your information, you can be in for a wild ride of filing reports and making sure your credit is in the clear. It can be a long and sometime irreversible process.

There are lots of stories out there about how to protect your credit cards but protecting the other important digits in your life is just as essential. Here are some tips that you need to follow to make sure your identity is protected at all times.

• Never provide your social security number to a source you can not prove is legitimate. This is especially important if you are asked for the numbers over the phone or online. There are entirely too many scams out there that seem legitimate until you find out you have been ripped off. You have the right to refuse to provide such information to requesters. If they will not cooperate with you, it may be a tip off that the business is not exactly on the up and up. Any business that is legit will understand that you are reluctant to reveal vital information, such as your social security number.

• There are some states that will use your social security number for identification purposes, such as on your drivers license. Since you show and use your driver’s license in many public capacities, you should request that an alternative identification number be provided. You have a right to make this request from any agency. If the identification card requires your social security number, request that the number is not made visible on the card and only stays in private records.

• Do not carry your social security card in your wallet or anywhere on your person. If you ever lose your purse or your wallet, anyone would have access to your social security number. This is nearly all the information that is needed to establish credit cards and other accounts in your name. Lose your card and risk facing a vicious cycle of financial disasters on your credit report. Keep your social security card with other important documents such as your birth certificate and other person documents. A locked box is the preferred place for such vital information.

• If your social security card has been lost or stolen or you suspect it has been used by persons other than yourself, contact your social security office immediately. If you let it go, anything that happens using your number in the meantime might be totally your responsibility.

Are You Guarding Your Social Security Number The Way You Should Be? was created by and is property of American Consumer News.

Believe it or not, there are many parents who will learn their own child has been a victim or identity theft as the number of reported cases to the Federal Trade Commission has been steady rising in the new millennium. But how do you know if your child’s credit or name is in jeopardy? Well, there are a few ways to tell. It is your job as the parent to take charge and make sure your child’s identity is protected. Here is what you can do to protect your children from fraud:

Pay Attention to the Mail
Have you noticed that your child has started getting offers in the mail for credit cards or solicitations for new products and services. This may not be a sure sign your child’s information is being misused but it can definitely be a red flag warning. It is possible that someone who has stolen your child’s information, you will see bills in their name but it doesn’t always happen that way.

Become Diligent About School and Extra-Curricular Activity Applications
As any parent of a school-aged child can tell you, sending your child to school or out for the soccer team, requires a ton of paperwork and information about your child, including social security numbers and date of birth. Because of the sensitive nature of this information, you need to ensure that your paperwork is always returned to school and the coaches in a sealed envelope. You want to make sure your child turns in important information directly to the teacher and that applications are not left to float around the school.

Know Where Your Child Goes Online
With popular sites like Facebook, there is no telling what your child will post online about themselves or their private information. Younger children may have no concept as to how another person can misuse social security numbers or birth dates against them. As a parent, you should not allow younger children to use the internet without your participation. For older children, be very direct about the dangers of revealing too much personal information to online sources. In some cases involving the internet, identity theft can be the least of the worries.

Request a Credit Report
If you even suspect something is not right concerning your child’s credit, contact the credit bureas and request a copy in your child’s name. If you receive a reply that your child does not have a credit report from any of the agency, be glad. It means that there has been no fraudulent activity using your child’s name. However, if you find that there is credit in your kid’s name, report it immediately.

One of the main reasons this situation can become out of control is that many families will not realize young children can be victims of identity fraud; therefore no one will ever think to check up on a credit report. The thieves can then use the credit of the young victim for years before anyone ever realizes anything bad has happened. Protecting your whole family from fraud and identity theft is now a common occurrence. Don’t let your child get taken for a ride and fall deep in debt before their college years or you may find it very hard to get them back out.

Are Your Kids The Next Victims of Identity Theft? was created by and is property of American Consumer News.

One such notable problem that has been in the news lately is the subject of  loan fraud. Uninformed or misinformed consumers have been victims of such fraud al too often and happens during times that should be of celebration, such as when buying a home for the first time.

There are a few things consumers can do to protect themselves during the loan process and even before, to help ensure that they do not become a statistic of fraudulent loans.

1. Contact more than one company to evaluate each of the pros and cons of the loan offer. If a loan company tells you that they are the only company that will give you a loan, walk away immediately. Getting several quotes can help you ensure you are being treated fairly.

2. Be very cautious about revealing too much information about your need for the cash. If a company understands such vulnerabilities, you could be facing an unfair advantage against the loan company.

3. Under no circumstance should you be told to lie or provide misleading information in order to get a loan. It should be a huge red flag if someone asks you to change information concerning your income, cash, or expenses. Walk away from any situation like that, no matter how badly you need the loan.

4. Never let anyone force you into borrowing more money than you are comfortable repaying. When an offer sounds too good to be true, it generally is.

5. Pay close attention to the terms of repayments. Balloon payments and interest only payments should be avoided. It is important you know and understand all of terms of the loan so there are no surprises. This includes repayment terms and all fees and penalties that can be incurred due to a late or missed payment.

6. Never, under any circumstances, sign a loan form or contract that is incomplete or has blank areas on them. Check each page for correct information and read over all documents, no matter how tedious they may seem. If you find any information that is not true, make sure it gets corrected immediately and entirely before proceeding.

7. During closing, make absolutely sure that you are signing exactly what was agreed upon and that additional information has not been added or changed without your consent.

Don’t Get Suckered into Fraudulent Loans was created by and is property of American Consumer News.

1. The Post Office: The Post Office is a common place where scams can be run. It has nothing to do with the people there, it is simply the way the Post Office was set up to be accommodating to the general public. Here are two common scams and what you can do to protect yourself.
   1. Stamps: If a letter has too many stamps on it, the post office will happily offer a refund of excess postage. Unfortunately, that means that if too much postage is purposefully put on one item, anyone can take that item to the Post Office for a refund in cash. Again, it is an easy scam to pull off and can be easily hidden if a company sends out a lot of marketing mail or bills.

<!–[if !supportLists]–>· <!–[endif]–>Protect Yourself By: Keeping track of how many stamps your bookkeeper has at any one time and how many stamps are given out to other employees. This can be done by simply keeping the stamps in your own desk. If you have a postage machine and cannot monitor stamps given out, take items to the Post Office yourself or give those items to someone in the office who has no access to the machine. This way, there is some accountability in the office and offers some protection to you.

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1. 2. Money Orders: In case you were not aware, the Post Office does offer money orders for sale. Unfortunately, this means that an embezzling bookkeeper can take any check written to the Post Office and have it turned into a Money Order made out to themselves. That money order is as good as cash and can be put into any bank account without a Small Business Owner ever knowing.

<!–[if !supportLists]–>· <!–[endif]–>Protect Yourself By: Demanding to see receipts from the Post Office immediately. The Post Office always gives a receipt when it makes a sale, no matter what. If a money order is purchased from the Post Office, that money order is going to show up on the receipt. By reviewing receipts every time someone goes to the Post Office, you will know immediately if any money goes astray.

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2. Payroll Taxes: Using Payroll Taxes to embezzle thousands of dollars is one of the most common ways a bookkeeper can steal. It is so simple and so easy, that many people do this year after year without ever getting caught. What they do is pay too much in taxes every single pay period, whether to themselves or a ghost employee. Then, at the end of the year, they file for a refund and get back thousands of dollars instantly.

<!–[if !supportLists]–>· <!–[endif]–>Protect Yourself By: Having your accountant review and/or file the payroll taxes every quarter. Specifically ask them to check for this kind of fraud since accountants don’t look for embezzlement unless you ask them too. If the taxes are too high, an accountant will let you know.

3. Redirected Payments: This is where things can get a bit tricky. Bookkeepers, good or bad, are in charge of writing checks. If an embezzler is smart enough to not forge a check, then an embezzler is also smart enough to get a Small Business Owner to sign a check for them. However, if a signed check gets to the person or company its supposed to get to…well, that is another story. It is very easy for an embezzler to get a Small Business Owner to sign a check to a company, and then deposit it into a different account.
   1. Consider this: You have a Citibank Business Credit Card. You charge on it every month and therefore, every month a payment has to be made. Once a month like clockwork, your bookkeeper comes to you with a check for payment. You think nothing of it and sign it never suspecting possible foul play. You also don’t notice if an account number was or was not listed on that check. Once you’ve signed that check and let it leave your sight, an embezzler could then put their own Citibank credit card number on the check paying off their own credit card instead of yours. Then, they would make the minimum payment on your card so that you would never suspect anything is wrong since you can still charge on your card. This can be done with any number of payment checks whether to credit cards, banks or even the IRS. Even if there is an account number on the check, it may not be yours…afterall, do you have all your account numbers memorized?

<!–[if !supportLists]–>· <!–[endif]–>Protect Yourself By: Always be the first to look at the mail…especially bank statements and credit account statements. If listed payments are less then what you remember making, you have an excuse to go and find the check. If checks have account numbers crossed out and new ones written out, you will be the first to know by simply opening your bank statement first. Anything that has white out or has been crossed out should set off alarm bells. Check these items closely right away to catch an embezzler as soon as theft occurs.

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While there are many other ways that embezzlers steal, this is just a few of the most common ones. Also check out the other articles in this series about Protecting Your Small Business from Embezzling Bookkeepers. Part 1 will teach you how to protect your Checking Account, Part 2 lists ways to stop Credit Card and Identity Theft fraud, and Part 3 discusses Ghosts in the Company. 

Protect Your Small Business from Embezzling Bookkeepers Part 4: Common Scams was created by and is property of American Consumer News.

Upon further investigation and agonizing phone conversations with company representatives, I was finally able to understand what had happened. When I moved out of my apartment two years earlier, my former roommate had managed to acquire phone service using her name and my social security number. To this day I do not know how she was able to get the number or be able to use it with her name at the phone company. I spent weeks writing letters and sending faxes to the phone company, disputing the bill. I had to prove over and over that I had not lived in that apartment in over two years. During that time, I was not able to have a phone connected in my apartment. Additionally, my credit report was negatively affected. If you find that your identity has been stolen, be sure to file a credit report dispute with the three major credit bureaus. It’s very important to make sure to fix credit reports otherwise when you try to apply for a credit card, car loan, or home loan, you might get unfairly turned done.  

The phone company could not answer as to how the roommate had gotten away with the fraud for so long. They could admit that the number and the name did not match up but went no further. Eventually, all of the charges were erased from my record and I was allowed service once again. However, nothing ever happened to the roommate. There was no prosecution for fraud and she was never even held responsible for the phone bill because the phone company did not have her social security number.

I know now how important it is to keep my credit report in check, especially because college kids use their social security numbers for everything. I was a lot younger and less financially educated at age 18. While having one obscene phone bill is small beans compared to what other victims have gone through, it is still a smack in the face and was definitely a wake up call for me.

Many people try to use bad credit repair services to clean up their stolen identities, however that’s not what you should do. Instead you should file a police report and get those items removed permanently.

Thieving My Identity was created by and is property of American Consumer News.

PayPal and a number of banks are offering one-time-use virtual debit and credit card numbers to their customers. The idea is that if you want to use your credit card but don’t completely trust the website you are visiting, you can request a one-time use number and designate a maximum amount that can be charged to it. The retailer you’re dealing with can charge your card once, the money is then taken out of your account or added to the balance of your credit card, and then the card number is invalid. That way if the retailer happened to store that number for later date and it was stolen, the number wouldn’t do anyone any good.

Using one-time-use virtual account numbers is great when you’re shopping at smaller online retailers and websites you’ve never been to before. For example, I recently purchased a copy of Age of Empires II to play with a couple of friends who had the game from a small gaming website. The product was only $8.00, so I wasn’t terribly concerned about the reputation of the site. I probably wouldn’t care if I was out $8.00, but if the retailer was unscrupulous and got a hold of my credit card number that I would care about. I hopped on to PayPal’s website, got a virtual debit card number, paid for the product, and went on with my life knowing that I hadn’t opened myself to any sort of security risk.

Research the retailer you are purchasing from and make sure they are reputable before giving them any personal information. Also make sure that there is a “lock” icon in the corner of your browser when entering your credit card number. That will indicate the connection is secure and encrypted. Virtual account numbers are not a be-all and end-all of keeping you safe when shopping online, but it is another line of defense you have available and you should make use of them when it makes sense to do so.

Prevent Identity Theft with One-Time Use Virtual Credit Cards was created by and is property of American Consumer News.

One of the worst things that can happen to you is credit card fraud. This is even worse if you don’t pay very much attention to your credit reports, since you may not find out about the fraud until there are very serious problems to deal with. Even if it’s possible to get out of paying for most of the fraudulent purchases that are made on your card, you will often have to pay for some of them – and you will have to go through the hassle of dealing with a stolen credit card if you’re not careful.

One of the major places where credit card fraud happens now is online. Therefore, you should be very careful about the companies that you give your credit card number to. Ideally, you should figure out a way to avoid giving out your credit card number at all. There are several payment services online that will help you make your online payments without giving out your credit card number to unauthorized parties.

You should also make sure that if you are entering your credit card number that it is being entered into the right field on the right page, and that it is being sent over a secure connection. If the connection is not secure, then anybody online might be able to find the information that you sent.

Another place where credit card fraud is common is over the phone. For this reason, you should avoid giving your credit card number to people or companies over the phone if at all possible. You should also listen to your instincts regarding the phone and internet. If you have any doubts about the safety of giving your credit card number, then you should probably not do so. After all, when it comes to things like fraud, you’re much better off safe than sorry.

If you do find that there are charges on your credit card that you don’t remember making, then you might be a victim of credit card fraud. Luckily, there are a lot of options to people who think that their credit card might be stolen. The first thing you should do if you think that your card or card number has been stolen is to call up your credit card company and immediately cancel the card. This will keep the person who has stolen your card from using it anymore. While you’ll still have to deal with what has already been done with your card, you will at least have limited the damage.

To keep yourself from being a victim of credit card fraud, however, the most important thing to do is just to use common sense. If something seems shady, then it probably is, and you shouldn’t risk your credit card number if you are unsure of the situation.

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Don’t Become the Next Victim of Credit Card Fraud was created by and is property of American Consumer News.

The US House recently voted to enact the “Mortgage Reform and Anti-Predatory Lending” act which would do a number of things to make sure that consumers know what they’re getting into when they take out a mortgage and ensure that they can only take out loans that they can reasonably afford to pay back.

The bi-partisan legislation passed on a 291-127 vote and would establish a federal licensing and registration system for mortgage lenders. In addition it would establish a new department in HUD called the office of “Housing Counseling” which would assist consumers in avoiding a foreclosure. The legislation would also make it illegal for banks to give loans to consumers that there’s no reasonable way for the consumer to repay and prevent lenders from pushing predatory loans on to consumers. The legislation will now move onto the senate and then the desk of the president.

Banks and other mortgage lenders have been fighting tooth and nail to prevent this legislation from being passed. They have absolutely refused to work with congress in coming up with some sort of reasonable compromise and have nothing to say on the legislation but “No Way, No How!” Major banks’ lobbies spent several weeks trying to derail the legislation while it was in committee and are now trying to prevent it from passing in the US Senate.

These large financial institutions have shown that they have not policed themselves properly. Banks which lend mortgages to people believe they have no responsibility to sell you the product that makes the most financial sense, but rather the one that makes them the most money. They have put people into mortgages which they simply cannot afford to repay by qualifying them on low teaser rates rather than what they would actually be repaying over the long haul.

Banks hate this legislation because they do not want to have what’s called as “fiduciary responsibility” to their customers, meaning that they would have to give them the product which is the best deal for the consumer, not the banks pocketbook. They’re also opposed to the bill because it would make it so that people had to qualify based on the actual payment, not the teaser rate. Mortgage companies are unhappy with the legislation because it would require them to spell out in plain English what the true cost of the mortgage is on a monthly basis as well as the costs and fees of the loan to the consumer.

By working against this legislation, banks are showing that they have little concern as to what’s in the best interest of the consumer and are rather only concerned about increasing the number of mortgages they originate and their short term quarterly profits.

Major Banks At it Again, Fighting Against “Truth in Mortgage Lending” Legislation Which Would Decrease Foreclosures! was created by and is property of American Consumer News.

If you were to list a car, a new computer, or another item that cost in the range of $500 to $10,000 dollars, chances are you will be contacted by a number of “potential customers” who seem to be very excited to purchase the item up for sale and want to pay you with a cashier’s check. It might not even be an item you have for sale. You might be renting out an apartment or anything where someone would send you money because of a listing on Craigslist. They will tell you that the cashier’s check has already been cut for more than the amount that you are charging for the item.

The scam artist will send you the cashier’s check and your bank will cash it, even though it’s a bad check. Chances are they will tell you that it’s a good and perfectly legitimate check even though in all reality it’s almost certainly a fake. You’ll deposit the check, find the money in your account, and since you think you have their money, you happily send them the difference, you might even give them the item. It might be three of four months later before you find out that the check you were sent is fraudulent and then the back will take the whole amount of the cashier’s check out of your account.

The criminal now has the item that you had for sale and the money you sent to them on top of the cashier’s check! Chances are you won’t be able to track down the criminal and get justice, as they are often overseas and you’re just out of luck. If you get an offer like this on Craigslist, have absolutely no contact with the individual offering you the cashier’s check!

Don’t Become the Next Victim of a Craigslist Scam. was created by and is property of American Consumer News.

In response to this fiasco, the Department of Education has come down hard. New rules in place prevent financial aid offices from taking any gifts greater than $10.00 from banks or other financial institutions. These include things such as gifts, cash, prizes, trips and the like. Financial aid offices will also have to put at least 3 preferred lenders on their student loan marketing material and tell their students why those preferred lenders were chosen.

A number of different colleges have taken individual actions to clean up their financial aid offices. For example, the financial aid directors of Columbia University and Johns Hopkins University have both been fired. Since colleges are under very close watch right now, chances are the financial aid offices will treat you a little bit better and make sure that you’re getting a good deal.

If you’re going to apply for a Federal Stafford Loan, make sure to research the banks you’re choosing from thoroughly. Don’t just look at the 3 options your financial aid office will give you, look around online and see if you can’t get a better deal. Find one that won’t charge you an origination fee and one that will give you a discount for paying on your loan on time after you graduate. Make sure you’re going with a reputable bank that hasn’t had any string of complaints about how they treat their student loan holders. Do your due diligence to make sure you’re getting a high-quality and low-fee student loan.

Colleges Caught Red Handed Taking Kickbacks from Banks was created by and is property of American Consumer News.

What Protection Do You Have? – Before putting an item up for auction or bidding on any auction item on any auction site, make sure you understand how the auction works, and what the obligations and rights you have as a buyer and a seller. Make yourself familiar with the fraud protection that the auction sites offer. eBay offers a buyer protection service for $25.00 which will pay you up to $200 for items that you win and never receive, or that you do receive and have been misrepresented. Unfortunately, this doesn’t cover high-ticket items.

Research What You’re Bidding On – When you bid on an auction site, that doesn’t necessarily mean you’re getting the best deal. Always make sure you know exactly what you’re bidding on, and make sure that you can’t get the same item at Wal-Mart or an online retailer for less money.

Bid Cautiously – Before bidding on an item, ask any questions that you have about the item that you don’t know the answer to. Make sure the item has some good photos, and that there’s a solid description of what you’re getting. If the item is being sold “as is”, it’s likely to be broken when it arrives. Make sure the seller has had a very positive feedback rating (at least 98% positive). Get the contact information of the seller and their physical address, and verify them by calling and seeing if they gave you their real information. It’s probably best to bid on items only from people in your country so that you have a better chance to go after them if there’s a problem with the auction.

When You’re Selling Items – It might be best to accept money by PayPal only. Often times cashier’s checks, personal checks, and money orders that you receive are fraudulent. The bank may even cash them and say they’re good, even when they are fake! You might not know it’s a bad check until months later. If you do receive money by PayPal, login to your account and make sure the money’s actually there. Sometimes fraudsters will send a fake email that looks like it’s from PayPal purporting that a payment has been sent. It’s probably also a good idea only to allow bidders from your country of origin so that the item isn’t half-way around the world and you have no recourse if a problem arises.

When Paying with a Credit Card – If you have the option to, use PayPal to pay if you’re going to use your credit cards. If you deal directly with the merchant and give them you’re number, they’ve got it as long as your card is good. You certainly don’t want them to have your credit card number if you have no idea who the seller is. The down-side of using PayPal is that you waive your rights to issue a chargeback, which also puts you out of luck if the seller fails to send the merchandise.

Consider an Escrow Service – If you’re bidding on a rather large item, say more than $1000, use an escrow service. An Escrow Service is an intermediary which will hold your payment until you have received the item, and then after you are satisfied with it, release those funds to the seller. Don’t let the other party suggest an escrow service that you’ve never heard of before, likely it’s a scam for them to take your money. Instead use a reputable escrow service such as Escrow.com and SafeFunds.com that are well established. You can look at Escrow-Fraud.com for a list of fraudulent escrow services. You’ll pay a small fee to use the escrow service, but it’s well worth it.

If a Problem Arises – First, try resolving the issue with the seller (or buyer). If you can’t resolve the dispute, then contact the auction site and your credit card company. Finally, if those two avenues don’t work, make a report to the FTC and the Internet Crime Complaint Center.

How to Protect Yourself from eBay Fraud was created by and is property of American Consumer News.