Consumer Alerts

BUYER BEWARE: DOOR-TO-DOOR MAGAZINE SALES   August 2010
Attorney General John Kroger warns Oregonians to be on the lookout for unscrupulous door-to-door magazine peddlers.

Door-to-door magazine companies are a perennial source of frustration for Oregon consumers, generating more than 150 complaints in the past year alone. Employees of travelling sales crews - mostly young adults - sell magazines and other products door-to-door using a variety of misleading sales pitches in order to obtain orders.

To read the entire alert visist www.oregonattorneygeneral.gov/beinformed.


E-mail Claiming to Be From the FDIC   July 2010
The Federal Deposit Insurance Corporation (FDIC) has received numerous reports of a fraudulent e-mail that has the appearance of being sent from the FDIC.

The subject line of the e-mails state: "you need to check your Bank Deposit Insurance Coverage." The e-mail tells recipients that, "You have received this message because you are a holder of a FDIC-insured bank account. Recently FDIC has officially named the bank you have opened your account with as a failed bank, thus, taking control of its assets." The e-mail then directs recipients to click on a link stating "You need to visit the official FDIC website and perform the following steps to check your Deposit Insurance Coverage."

This e-mail and associated Web site are fraudulent. Recipients should consider the intent of this e-mail as an attempt to collect personal or confidential information, or to load malicious software onto end users' computers and should not click on the link provided.

The FDIC does not issue unsolicited e-mails to consumers. Financial institutions and consumers should NOT follow the link in the fraudulent e-mail. 

 

Scam Using Fake Allstate Insurance Checks  April 2010
Allstate Insurance Co. is warning consumers of an international mail fraud scheme using counterfeit checks with Allstate's name on them.

An individual received a counterfeit check that appeared to originate from Allstate. The fraudulent check was issued for $4,970.20 and came with a letter informing the recipient that they won a $250,000 "Consumer's Promotion Draw" for consumers who shop at a number of the nation's major stores. The letter also explains the $4,970.20 check was issued to cover the "Non-Canadian Residential Tax" the consumer will have to pay to a tax agent. The consumer is also expected to pay $200 in insurance and delivery charges.

The individuals sending these letters and counterfeit checks have no affiliation with Allstate and are illegally using the company's name, according to officials.

Recipients are told that to receive the $250,000 prize, they must cash the check and then send $4,770.20 by Moneygram or Western Union to an address located in Tacoma, WA. Consumers who cash the phony check could find themselves owing their bank more than $4,900.

Tips to consumers to help them avoid falling victim to this type of scheme:

• Be leery of checks received from companies you do not do business with. The check is most likely fraudulent.
• If an offer sounds too good to be true, it probably is.
• Be skeptical of any correspondence offering you the opportunity to win a large sum of money in exchange for specific information.
• If the name of a well-known company is noted on the correspondence received, contact the company to verify the legitimacy of the letter.

WATCH OUT FOR HAITI EARTHQUAKE SCAMS
Oregon Attorney General John Kroger is warning Oregon consumers to be on the lookout for unfamiliar organizations soliciting funds for victims of the recent earthquake in Haiti. Scammers exploit current events – from fears about a swine flu pandemic to the sale of Michael Jackson memorabilia – to defraud consumers. Scammers will seek to gain access to credit card numbers and bank accounts in order to commit identity theft. Unscrupulous charities may also seek donations, even though only a small percentage the money will actually be used to help earthquake victims.

Many legitimate organizations are seeking donations to aid victims of the devastating earthquake in Haiti. To confirm that a charity is registered, visit the Oregon Department of Justice web site: www.oregonattorneygeneral.gov. To help consumers distinguish worthy charities from con artists and unscrupulous non-profits, Attorney General Kroger offers the following tips:

Do not give out personal information such as credit card or bank account numbers over the phone. Legitimate charities will accept contributions by check, which should always be made payable to the organization not the person collecting the donation.  Beware of callers who want your money fast. When solicited by phone, always ask the caller to send you written materials about the charity. No legitimate organization will insist that you donate immediately. Watch out for solicitors who employ dramatic, emotional or heart-tugging stories. Do not donate cash. Legitimate charities will be pleased to receive a contribution by check. Don't send contributions with a "runner," by wire or overnight parcel pick-up service.

Be sure you are contributing to a legitimate organization registered with the Attorney General's Office by searching the Department's online database or by calling 971-673-1880. You can also visit www.guidestar.org, a national clearinghouse of information about charities and their performance.
Scammers, identity thieves and unscrupulous charities pose a significant threat to Oregon consumers. Last year, more than 150 Oregon consumers reported falling victim to some kind of a scam. The Oregon Department of Justice, a national leader in policing non-profits, also took legal action against more than 20 non-profits for using misleading solicitations.

The Oregon Department of Justice is committed to protecting Oregon consumers. Anyone who thinks they may have been contacted by a scammer should call Consumer Protection Hotline at 1-877-877-9392 or go to the Oregon Department of Justice web site: http://www.doj.state.or.us/finfraud/index.shtml

Fraudulent FDIC Emails
The Federal Deposit Insurance Corporation (FDIC) has become aware of emails appearing to be sent from the FDIC that are asking recipients to download and open a “personal FDIC insurance file” to check their deposit insurance coverage. These e-mails are fraudulent and were not sent by the FDIC. The FDIC is attempting to identify the source of the e-mails and disrupt the transmission.

Currently, the subject line of the fraudulent e-mails includes the wording “check your Bank Deposit Insurance Coverage.” The e-mails state: “You have received this message because you are a holder of a FDIC-insured bank account. Recently FDIC has officially named the bank you have opened your account with as a failed bank, thus, taking control of its assets.”

The e-mails ask recipients to “visit the official FDIC website” by clicking on a hyperlink provided, which appears to be related to the FDIC and directs recipients to a fraudulent Web site. The Web site includes hyperlinks that appear to open forms. However, it is believed that clicking on the hyperlinks will cause an unknown executable file to be downloaded. While the FDIC is working with the United States Computer Emergency Readiness Team (US-CERT) to determine the exact effects of the executable file, recipients should consider the intent of the software as a malicious attempt to collect personal or confidential information, some of which may be used to gain unauthorized access to online banking services or to conduct identity theft. Financial institutions and consumers should NOT access the Web site or download the executable files provided on the Web site.

Information about counterfeit items, cyber-fraud incidents and other fraudulent activity may be forwarded to the FDIC’s Cyber-Fraud and Financial Crimes Section, 550 17th Street, N.W., Room F-3054, Washington, D.C. 20429, or transmitted electronically to alert@fdic.gov. Information related to federal deposit insurance or consumer issues should be submitted to the FDIC using an online form that can be accessed at www2.fdic.gov/starsmail/index.asp.


FAKE U.S. CENSUS SCAM
Attorney General John Kroger is warning Oregonians about con-artists, posing as U.S. Census workers. Conducted every ten years, the U.S. Census is an important process that helps to both define legislative districts, and determine how to allocate $300 billion to local, state and tribal governments each year.

For every person living at an address the U.S., the U.S. Census will ask for a name, age, gender, race, ethnic origin, birth date, marital status, employment status, and other similar information. Con-artists posing as Census employees ask for donations, personal financial information, and/or Social Security numbers.

Here are some tips to tell the difference between a U.S. Census worker and con-artists:
1. U.S. Census Bureau will not contact you by E-mail.
2. U.S. Census workers will not ask you about past debt, solicit money, or in
any way harass you about finances.
3. U.S. Census workers will not ask for you Social Security Number, banking
information, or credit card number.
4. U.S. Census workers will have identification; a copy of the notification letter
you received, or should have received, in the mail describing the survey; and,
depending on the area, a laptop and laptop case bearing the insignia of the U.S. Census Bureau.

If you are unsure whether or not you are the target of a Census-related scam, please call the Oregon Department of Justice Consumer Hotline at 1-877-877-9392.


American Bankers Association (ABA) Warns of Fraudulent Letters, Fake Checks   Aug 2009
ABA has been alerted that individuals sending cash-prize letters purporting to be from the ABA are part of fake check scam. The con artists are sending letters asking people to call a phone number to find out how to collect a prize -- a popular technique to get personal financial information from letter recipients.

Many of the letters contain one or more fraudulent checks, and a number of individuals have attempted to cash or deposit these fraudulent checks. The check amount is typically between $1,000 and $5,000. ABA is working with law enforcement to identify and disrupt the source of the letters


WEB HOSTING EMAIL SCAM  May 2009
Attorney General John Kroger is warning consumers about an email
spyware scam. The email from “WebHosting” says: “Dear Customer, we have
received your order and will be processing it shortly. The details of the order
are below.”

The email claims that the consumer will be billed $4.99 a month for
the Web hosting and $14.95 annually for domain name registration.
The email has a link to “log in,” but consumers who click on it will
instead end up with spyware installed on their computers. In addition to
collecting information about a computer user’s browsing habits, malicious
spyware can install additional, unwanted software, redirect Web browser
activities and change computer settings, resulting in slow connection speeds,
different home pages, and a loss of Internet functioning.

The Federal Trade Commission’s Web site has information about
what to do if consumers are victimized by spyware.
Consumer Protection Hotline: 1-877-877-9392.
Online: www.doj.state.or.us.


CHECK SCAM VIDEO SHOWS YOU HOW EASY IT IS  May 2009
Think you can’t get faked out? Watch the video:
http://www.fakechecks.org/

CONSUMER TIPS FOR AVOIDING LOAN MODIFICATION SCAMS April 2009 
A consumer advisory to help homeowners avoid mortgage modification and foreclosure scams has is now available. The advisory, which includes scam warning signs and resources to contact for legitimate help, reminds consumers having difficulty paying their mortgages to contact their lender or servicer to discuss options and alternatives.  This new resource is available online HERE.

GRANDPARENTS SCAM  April 2009
A grandparent receives a frantic call from someone they believe to be their grandchild. The supposed grandchild sounds distressed and may be calling from a noisy location. The supposed grandchild claims to be involved in some type of trouble while traveling in Canada, such as being arrested or in a car accident or needing emergency car repairs, and asks the grandparent to immediately wire money to post bail, pay for medical treatment or car repairs. The scammer typically asks for several thousand dollars, and may even call back again several hours or days later asking for more money. He or she may claim embarrassment about the alleged trouble and ask the grandparent to keep it a secret.

A variation of the scam may involve two scammers – the first scammer calls and poses as a grandchild under arrest. The second scammer, posing as some type of law enforcement officer, then gets on the phone with the grandparent and explains what fines need to be paid. Alternatively, the scammer may pretend to be a family friend or neighbor. A common theme of the scam across the nation is the caller's request for the grandparent to wire money through Western Union or MoneyGram or to provide bank account routing numbers. Wire transfers of money are nearly impossible to trace and typically cannot be recovered from the telephone con artists.

In Michigan, grandparents were taken for $33,000. They wire transferred $3,000 to someone they thought was their grandson after he called and claimed he was caught fishing without a license in Canada and needed to pay a $3,000 fine. They were taken for an additional $30,000 after the supposed grandson called again to say that alcohol and drugs were found when his boat was searched, and he needed $30,000 to post bond to get out of a Canadian jail.

Beware of Mystery Shopping Scams  March 2009
The Better Business Bureau is warning of a new mystery shopper scam. People all across the country are getting letters that say you are selected to participate in a consumer research program as a mystery shopper. The letter states that you took a survey and indicated you were interested in additional income. A woman in Washington received the letter and almost fell for it until she realized she had never taken a survey, which sent up a red flag. Another red flag… the letter came with a check. The company wants you to cash the check, keep some money for yourself and wire the rest of it back to them. The Better Business Bureau warns you to not cash that check.

Visa Check Card Compromise  January 2009
MBank has been notified by Visa that some of our customers' – among those from other banks – check card and credit card numbers may have been compromised by a third-party vendor. Banks nationwide have been affected by this compromise. Visa and the authorities are continuing their investigation into this issue and when additional information becomes available, we will share it with you here.

Currently, MBank is monitoring customer check card transactions to assist in preventing fraudulent transactions from occurring. Rest assured that we are committed to doing everything possible to protect you and your account(s). At the same time, Visa is providing us with information of cards that they have identified as being affected. Depending on the nature of the compromise, we may elect to remove certain features of your check card. For instance, MBank may turn off the signature-based credit swipe feature (often used in restaurants or at gas stations) and only allow PIN-based transactions. In some cases it may be necessary for MBank to deactivate your check card completely. If your card is identified as being compromised, MBank will attempt to contact you by phone or send you a letter notifying you that a new card will be mailed to you within the following 7 to 10 days.

As a precaution, we suggest that all cardholders review their account transactions immediately and call us if you believe any unauthorized account activity occurred. As a reminder you are protected with Visa's Zero Liability policy* should you have unauthorized account activity. The most immediate means to review your transaction information is online with MBank’s online banking system. You’re also welcome to visit us at one of our five local offices or call us at (503) 661-8688. Paper statements will be sent on their regular schedule.

If you believe your CHECK CARD has been affected, please call    (503) 661-8688 or (888) 833-3455

If you believe your MBank CREDIT CARD account has been affected, please call (800) 367-7576


Consumer Warning: Text Message Scams
Tens of thousands of people nationwide have received suspicious text messages asking for individuals’ banking information. The messages state that the recipient’s bank account has been closed due to unusual activity, and asks the individual to call a phone number with bank information. If you receive such a text, do not respond. Financial Institutions will not contact you via text messaging asking for your bank information.

Consumer Warning: Fake MBank Survey Calls
Some MBank customers have received a call from someone claiming to be from Merchants Bank and that they are conducting a survey regarding customer service.

MBank is NOT conducting any surveys via phone calls. If you receive a call like this, please hang up and report it to MBank at reportphishing@mbankonline.com.

Consumer Warning: Fake FBI Messages
A Federal Bureau of Investigation (FBI) press release warns consumers regarding e-mail messages that claim to be sent by top FBI officials in an attempt to defraud consumers. Many of the spam e-mails claim to: be from an “official order” from the FBI’s non-existent Anti-Terrorist and Monetary Crimes Division or from an alleged FBI unit in Nigeria; confirm an inheritance; or contain a lottery notification.

"Consumers should not respond to any unsolicited e-mails or click on any embedded links associated with such e-mails, as they may contain viruses or malware" the press release reports. "It is imperative consumers guard their personally identifiable information."

Consumer Warning: Fake Advertisements from American Bankers Association
“Phishing” scams are not just limited to the internet. The American Bankers Association (ABA) has recently become aware of a scheme using the “American Bankers Association” name that is intended to trick the unwary into disclosing confidential security information related to their savings and checking accounts.

The “phish” works like this:

An advertisement is placed in a local newspaper seeking to hire survey takers to “evaluate” local banks. Those who apply to the position are sent a package of papers from the “American Bankers Association” that includes a list of bank branches and a very elaborate survey. The survey takers are instructed to go to their assigned bank, open an account with their own money, and then forward the survey, account information, and security information to an address in South Carolina. Any individual who complies with the instructions will quickly lose any money that they deposit into that account.

The ABA is in no way affiliated with this bogus “survey.” While unaware of any individuals who have actually experienced a loss as a result of this scam, the ABA is working with law enforcement officials to track down the individuals behind the attempted fraud.