Fraud and Other Financial Schemes

You are told your Mortgage has been Sold to a New Bank

With the take over of many banks by other banks, many people will be receiving legal and proper notice that they should start sending their mortgage payments to a new bank at a new address.  This information when proper should always be in writing.  We strongly suggest you verify the information very carefully before sending checks to a new location.  There are criminals who send out false information to homeowners.  Be exceptionally cautious of a simple phone call telling you to send your money to a new location. 

You are Offered a New Job Schemes

These schemes usually begin with an e-mail notifying you that your application for a job has been reviewed and you are one of the top candidates for a new position.  Of course if you have actually applied for a position with a particular company, this may be a legitimate communication. If the e-mail arrives unsolicited, it is usually a scheme to get enough information to steal your identity and ruin your credit. Variations include: you have been actually accepted for a new job, or your resume was found on a website. When you call the number indicated they will try to get more personal information about you such as your address, phone, number, social security number, etc. 

Credit Schemes by Banks

1) Washington Mutual and other banks are  doubling the interest rate for many of their customers without warning to customers who have never had a late payment  on their credit card  and have never been over their credit limit.

• Read the small print they send you every month...sometimes what they are doing is legal. 

•  Many credit cards companies say they can increase your rate to the default rate at any time for any reason they like without advance notice. 

• The first you will realize something is amiss is when you see your statement. 

• Even better for the banks: if you are close to your credit limit, the sudden increase in interest charges may put you over your credit limit  incurring the new over limit fees.

• If you go over your limit with one credit card, that event may allow your other credit card companies to double their interest rates also.

2)  Washington Mutual and other banks are drastically reducing credit lines for customers who have never had a late payment  on their credit card  have never been over their credit limit.

3)  Washington Mutual and other banks  are closing credit card accounts completely for customers who have never had a late payment  on their credit card  have never been over their credit limit.

4)  Washington Mutual, Wells Fargo, and other banks are greatly reducing credit lines on home equity lines of credit or closing home equity lines of credit completely for customers with perfect credit, who have never had a late payment  on their credit card  and have never been over their credit limit.

Identity Theft Scams

1) You receive a call from someone claiming to be from your credit card company. The caller says they want to offer you a lower rate for you present card.   They then say they have to verify that you are the true owner of the account.  They request your full name, your address, your credit card number, and your social security number.  They then have all the information they need to fraudulently set up fake credit card accounts in your name and use these accounts.   Be very careful when anyone calls you claiming to be from your bank or credit card company. Ask to call them back and use the phone number on your bank statement. Never, ever, ever give your full credit card number to anyone who calls you. You have no idea who they are when they call you.

2) You receive an email from an employer saying they have reviewed your resume and are ready to offer you a position with their firm.  All they need is for you to fill out a form so they can make the offer to you.  Questions on the form include, name, address, phone number, social security number. They then have all the information they need to fraudulently set up fake credit card accounts in your name and use these accounts.

3) You receive an email from your bank,  credit card, or Pay Pal, saying that someone has tried to use your account or credit card fraudulently. They request that you click on a link and fill out the information there.  Again this is just a way to get your personal information so they can illegally open credit card accounts in your name. Note that the website you are taken to may contain the actual name of a real bank, but it is not the real  home page of the bank.  The website may look like this  www.abcFirstNationalBank.com   In responding to any email of this sort, only go to the actual company website or phone the number on your bank statement.

4) Families of men and women in our armed forces deployed overseas have been hit with this scam:  Someone calls claiming to be from the local District or County Court, asking if this is the correct phone number for John Smith (John has been deployed overseas, but the caller does not mention this.)  When the person answering the phone says yes. The caller then says that John Smith is in contempt of court for failing to answer a  Summons to Jury Duty.  The distraught family member explains that John is in the armed services and is over seas.  The caller is immediately sorry, states that they are glad that John is serving his country.  The Contempt Order will be cancelled immediately. All the caller needs is a bit of information.  Proper spelling of John's name, his date of birth, address, social security number, etc.  This information is then used to fraudulently obtain credit card accounts in John's name.