Tax Rebate Scam

Under one scheme, the IRS said, people are receiving phone calls telling them they can only receive a rebate if they provide bank account information for a direct deposit.

The tax agency stressed that it does not collect information by telephone and that no legislation has been enacted that would allow it to provide advance payments to taxpayers or that specifies the details of those payments.

The House last week, as part of an economic stimulus package, approved tax rebates of $600 and $1,200 respectively for most individuals and couples, with another $300 per child. The Senate is now considering a slightly different version.

The IRS also repeated past warnings of e-mails, supposedly coming from the agency, where people are asked to enter personal information on a form needed to obtain a tax refund.

Don't spend your rebate just yet

A new scam, it said, involves an e-mail notification that a person's tax return will be audited with instructions to click on links to complete forms with personal and account information.

Businesses and accountants are also getting e-mails with instructions to download information on tax law changes. Clicking on these links could download "malware" onto the recipient's computer that gives the scammer remote access to the computer hard drive.

In another telephone scam, a caller claims to be an IRS employee who says the taxpayer has not cashed a refund check and asks the person to verify his or her bank account number.

On Tuesday, at a Senate Finance Committee confirmation hearing for Douglas Shulman, the nominee to be IRS commissioner, Sen. Charles Schumer, D-N.Y., expressed concern that taxpayers would be victimized by tax prepares and lenders who charge high interest rates for short-term advances on their stimulus rebates.

The IRS advised people not to click on any link from an e-mail purporting to come from the tax agency. People receiving questionable e-mails can contact the IRS through phishing@irs.gov.

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Prevent a Scam by Staying Educated
There is no legitimate reason why anyone would give you a check or money order and ask you to wire money anywhere in return. Take a look at this site for videos and information on current scams. www.fakechecks.org

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What is Phishing?
Phishing attacks are 'spoofed' e-mails and fraudulent websites designed to fool recipients into divulging personal financial data such as: Credit card numbers, Account usernames, Passwords, Social Security Numbers, etc.

By hijacking the trusted brands of well-known banks, online retailers and credit card companies, phishers are able to convince up to 5% of recipients to respond to them.

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Beware of Fraudulent E-mail Schemes…

As Internet and e-mail usage expands, so do fraudulent schemes and identity theft. In an effort to protect consumers from the increasing trend of fraudulent e-mail schemes, the Federal Trade Commission (FTC) and the United States Department of Treasury have issued a press release on how to protect your personal information and identity. The following points will help you protect yourself against e-mail schemes:

• Review credit card and credit union account statements as soon as you receive them
• Delete unfamiliar e-mails that ask for your credit card number and/or PINs
• Never confirm your billing information through e-mail
• Avoid e-mailing personal and financial information

As a consumer and a member of Cyprus Credit Union, if you feel that you have been a victim of fraudulent activity or identity theft contact us immediately. You should also file a report at www.ftc.gov and visit the FTC’s Identity Theft website www.ftc.gov/idtheft. If you suspect any suspicious activity send an e-mail to uce@ftc.gov. For additional information, visit the full press release on the United States Department of Treasury website at www.ustreas.gov/press/releases/js1130.htm.

Web Auction Scam
Members, who are selling items online auction websites such as ebay.com, carsoup.com, kslcars.com, and places where you sell your vehicle for free; are bringing in fraudulent checks.

How to know if it is a scam

• When a person places an item on one of the mentioned above websites to be sold.
• A potential buyer, who is located outside of the United States of America, contacts you.
• The buyer expresses their desire to buy the item
• They send the seller a cashiers check that is over the amount of the asking price for the item.
• The buyer then requests that you send the item with the additional money, which is usually, thousands of dollars through Western Union.

Postal Money Order Fraud

• The catch: Someone contacts you over the internet, and they offer to send you some money orders for you to cash and then for you to wire the money back to them. Most likely, the Postal Money Order is counterfeit.
• These counterfeit Postal Money Orders can be cashed almost anywhere, but because they are drawn on the Federal Reserve, they won't bounce back as “phony” for 4 to 6 weeks. If you spend the money from the money order and they come back phony, you'll have to pay back the Bank, while the crook goes free.
• How to protect yourself: When it comes to Postal Money Orders from strangers, take them to the Post Office for cash. They will make sure they are real before they give you the cash.
  Postal Inspectors are training Banks and Credit Unions to spot counterfeit money orders, but they might not always catch them.
  

Employment Check Fraud

• A person is applying for a job online at a website such as monster.com.
• The person applying for the job is contacted by the company
• They are told the company needs them to cash a check for the company.
• The person is told to wire the funds through Western Union back to the company and keep some of the money for himself or herself.

UNFORTUNATELY, NOBODY IS SAFE FROM BEING A VICTIM OF FRAUD. We try our best to catch fraudulent checks as they come into the branches, but to help protect yourself please remember, if it’s to good to be true it is.

IF YOU HAVE A CHECK IN QUESTION, do not be afraid to ask the teller to hold the funds. This way you are protected if the check is fraudulent or counterfeit. The National Credit Union Administration (NCUA), which insures member deposits, does not insure fraudulent deposits. Even good members are responsible for fraudulent deposits and can incur a loss.