Different fraud tactics all share the same goal: to obtain your personal, confidential and financial information for fraudulent use. From obtaining your information "the old fashioned way" via discarded mail, to emails that ask you to verify personal information under the guise of a trusted source - like your financial institution - fraudulent activity comes in many different forms.

Identify Theft

The term identity theft refers to the use of a consumer's identifying information (such as your name, social security number, date of birth, and other sensitive identifying numbers) by another person, without authorization, and with the intent of committing fraud. The theft of sensitive personal information may result in considerable harm including financial loss, to the victim as well as adversely impacting other persons or entities which accepted the fraudulent information in the process of providing a product or service to the identify thief.

Advance Fee or Nigerian Letters

Advance fee scams occur when you receive a communication such as a letter, fax, or e-mail that requires you to pay a fee up front or in advance of receipt of any goods or services including money. A particular type of advance fee scam is commonly referred to as the Nigerian 419 advance fee scam. In this scam, a person pretends to be a Nigerian official or business-person asking ordinary individuals like you and even companies to help move millions of dollars out of Nigeria in exchange for large sums of money.

Foreign Lotteries

The scam starts when you receive a call, an e-mail, or a letter telling you that you've won a large sum of money in a foreign lottery (Canada, Australia, another county) you don't remember entering. To claim your "winnings," you'll have to provide your bank account number so your winnings may be deposited into your account. You're told you've won a sizeable lottery and are asked to wire a few thousand dollars to a "customs agent" to cover fees and taxes. But after wiring the money, you may even be contacted again and told you must send even more money to collect your prize. Shortly thereafter, you receive a congratulatory letter in the mail along with a check for the winnings. You're instructed to deposit/cash the check, and then wire a portion of the funds to a foreign bank account to cover taxes and fees. The catch is where you think you are keeping the remaining money as your "lottery winnings." However, bad news arrives from your bank: the check was counterfeit and you now must repay what you have spent of the deposit. This is in addition to the money you have already lost with the wire to cover the fees.

Telemarketing

There are many legitimate companies that use the telephone for marketing to consumers and businesses. Unfortunately there are many consumers and business that lose millions of dollars to telemarketing fraud each year. One sure sign that something is wrong is when telemarketers ask for a fee upfront (it is also illegal). This occurs when the telemarketer promises or claims it is likely that they will get you a credit card or loan, or to "repair" your credit for a fee. Watch for the telemarketer that uses scare tactics or tries to intimidate you.

Sweepstakes

The scam starts as a notification that you have just won a sweepstakes, prize, car, boat, jewelry, etc. Upon notification, you are informed that you must first pay a fee to claim your prize. Legitimate sweepstakes do not require you to pay for handling, insurance, taxes and the like to claim your prize.

Phishing

The fraudster uses unsolicited e-mail (spam) to bait you into disclosing sensitive personal information such as your social security number, bank account, credit or debit card numbers, PINs (personal identification numbers and passwords. The e-mail may appear to be from a legitimate business. The request is to update or validate billing account information. There is usually a threat attached such as: "Failure to do so may terminate your relationship". Thus, consumers submit their personal information to the imposter, who then uses your personal information to commit identity theft.

Counterfeit Cashier's Checks

A cashier's check is a check drawn on a bank on its own funds and made payable to another person or business. People usually use it to facilitate the purchase of goods and services of larger dollar amounts and when the seller wants additional assurances. It has been a reliable method of payment. Unfortunately, technology has made it easier for fraudsters to use scanners and high quality printing to create a genuine-looking cashier's check. The loss occurs when the counterfeit check is deposited and the depositor uses those funds (believing the check is good); it can be returned and charged back to the depositor's account. The quality of counterfeits is so good, that even bankers have a hard time telling the difference.