CONSUMER INFORMATION

Switch Kit | "Check 21" | Consumer Fraud Advisory

Consumer Fraud Advisory
Protecting Your Checking Account | Latest Scams | E-Mail Scams | Home Improvement Scams| Beware of Promises to Erase Bad Credit | What is Phishing? | Use Precautions When Using an ATM

WARNING!

West Milton State Bank is currently receiving fraudulent checks, which has been identified as a scam.  These checks have a letter attached informing them that they have won a lottery and being requested to wire funds prior to receiving their winnings.  This is a scam.  Do not wire any monies and notify your local authorities of this scam.

Protecting Your Checking Account

Review your monthly statement.  Make sure all the checks, debits, automatic payments, and other withdrawals are ones you authorized.  If you see a transaction you did not authorize, notify your bank immediately.  If your bank has online banking, you don't have to wait until your bank statement comes - you can check your transactions at any time.

If you don't have enough money in your account, don't write the check or authorize the debit.  Checks are being processed more quickly these days, which means the money may be debited from your account sooner.  Also, many stores and utility, insurance, and credit card companies will convert your check to an electronic payment, which also means the money will be debited from your account sooner.  If you don't have enough money in your account when you write a check or authorize a debit, you could find yourself paying a fee.  For more information, see the Federal Reserve Board's publications "What You Should Know about Your Checks" (www.federalreserve.gov/pubs/check21/shouldknow.htm) and "Protecting Yourself from Overdraft and Bounced-Check Fees" (www.federalreserve.gov/pubs/bounce/default.htm).

Know your rights under consumer protection laws.  If you have a problem with an electronic debit or electronic fund transfer, you have certain rights under the federal Electronic Fund Transfer Act (EFTA), as explained in the Board's "Consumer Handbook to Credit Protection Laws" (www.federalreserve.gov/pubs/consumerhdbk/electronic.htm).  You also have rights under the EFTA if you have a problem with a check that has been converted, as described in the Board brochure "When Is Your Check Not a Check?" (www.federalreserve.gov/pubs/checkconv/default.htm).  The Federal Trade Commission's publication "Automatic Debit Scams" (www.ftc.gov/bcp/conline/pubs/tmarkg/debit.pdf) explains your rights and what to do if you have a problem with a demand draft or remotely created check.

Latest Scams

Whether it be fake cashier's checks, ATM skimming devices or a faith-based investment hoax, be alert to the latest scams being perpetrated on innocent victims.

Fraudulent Cashier's Checks - With new computer technology, crooks find it easy to produce almost perfect copies of checks from banks and other financial institutions.

Law enforcement agencies advise that you never accept a cashier's check from a stranger unless you call the bank that issued the check and verify not only the check number, but also to whom the check was issued.  Even though the number on the cashier's check could be a copy of a real number, you want to make sure that the number is on a check that has been made to you.

Many crooks will try to give out fake cashier's checks for purchases on the weekend when banks are closed and you can't verify the check.  Bogus cashier's checks are becoming a major scam for many people who choose to sell their cars directly to buyers through classified ads.  A potential buyer may approach you on the weekend with a check that may bear an official-looking logo in the name of a local bank and have the term "cashier's check" printed across the top of the check.  The seller will assume this is a very safe check.  Remember, a bank would never issue a blank cashier's check and probably wouldn't issue a specific dollar amount if the sale is not done through normal retail channels.  Do not part with the car until you have talked to the bank directly to verify the check.  Additionally, don't depend on a "bank" phone number given to you by the purchaser.  It could be the phone number to one of his partners involved with him in the scam.  Check the number out in the phone book.  If the buyer is reluctant to have the bank verify the funds, contact local law enforcement.

ATM Skimming Devices - A new problem, although not widespread, facing consumers and banks today is ATM skimming devices.  These scams involve the use of one or more devices to record account and personal identification numbers (PINs) from your ATM card.  The next thing you know, crooks are withdrawing money from your checking account.  In some cases, skimming devices are placed on the card reader and the keypad without interfering with the operation of the ATM.  Therefore, the customer receives his cash when making a withdrawal.  In other cases, a non-functioning ATM is installed to capture cards and PINs.  The con artists using skimming devices are not your petty thieves.  They are part of a very sophisticated and competent organization.

The ATM industry is diligently working to protect ATM cards and assure the public that these cards are safe to use.  With more than 360,000 ATMs nationwide, be aware as a consumer that if something doesn't look right at an ATM, don't use it.  Go to another ATM.

Faith-Based Scams - It is estimated that more than 90,000 people nationwide have lost nearly $2 billion to "faith-based" investment scams during the past three years.

According to state securities regulators, faith-based investment scams have risen dramatically.  Con artists will use religion to promote their scams by using their interpretation of biblical prophecy to predict imminent financial or social crises.  Some claim they will reinvest the money in a worthy cause.

Before making any such investment, check with your state securities regulator to see if this investment is licensed in your state.  To find your state securities regulator, you may log on to the North American Securities Administrators Association Web site at www.nasaa.org.  Additionally, make sure the seller has provided you with written information fully explaining the investment and verify this information with your local banker or financial advisor.

"Nigerian" Scam - We've all heard about the "Nigerian" scam, or variations on the same crooked scheme.  While it is one of the oldest frauds around it appears to be gaining momentum and duping more Americans.

Americans are very gullible.  We are anxious to help someone we believe is in need or we are looking for an easy way to make money.  Nigerians use these character traits to catch victims with their guard down.

Perpetrators of this scam have been bilking money from compassionate and/or greedy Americans for years.  Here's how it works. You receive a letter or an e-mail from someone claiming to be a Nigerian official, businessman or surviving spouse of a former government official.  The letter will say that the individual wants to transfer millions of dollars into your bank account in exchange for a small fee.  If you respond, you'll probably receive some official looking documents.  Then you'll be asked to provide blank personal or corporate letterhead, as well as your bank account numbers and some money to cover transaction, transfer and legal fees.

As the scam continues, you'll discover that the transfer of funds to your account is continually delayed, while you are continually asked to transfer more of your funds.

If you transfer money to one of these scam artists, one of two things will happen.  You'll simply lose your money right away, or more than likely, the scammer will contact you in a couple of days telling you there has been a delay and that they are going to need more of your money in order to get the funds released.  And, as long as you keep sending money, they'll gladly accept it.

Surprisingly, the Nigerian government is well aware of these scams.  In fact, these scams are the third largest industry in Nigeria and far too profitable to the country for the government to ever crack down on them.

Before finding yourself a victim of a Nigerian or other scam, ask yourself two questions:

• Why would a stranger want to give you money to deposit into your bank account; and

• Why would you want to give a stranger your personal financial information?

The Nigerian scam has taken on a new twist.  Some of the "scammers" participate in online auctions, or respond to classified ads, finish with the highest bid and then send a cashier's check to pay for the purchase.  The check is always more than the actual cost of the merchandise and the buyer asks the seller to wire the overage back to a foreign bank.  The unsuspecting victim deposits the check into his bank account, wires funds back to the perpetrator's bank and discovers weeks later that the check is a fake and both the merchandise and the funds are gone.

If you should receive an e-mail asking you to help send money out of Nigeria or any other country, forward the correspondence to spam@uce.gov.  And, whether a classic "Nigerian" scam, "lottery" scam or a host of others, please remember -- if it sounds too good to be true, it usually is too good to be true!

Provided as a public service by Pennsylvania Association of Community Bankers.

Note: These tips are intended to provide accurate, yet general consumer information.  They are not intended to provide legal, accounting or other professional services.  Please contact a professional service provider for specific questions.

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 E-Mail Scams

Now that we find ourselves in an Internet-driven world, we are constantly flooded with e-mails.  While e-mail makes it easy to conduct personal and corporate business, it also makes us easy prey for e-mail scammers.

For example, suppose you receive an e-mail from your bank or your credit card company saying that your bank card or credit card has been used to purchase some merchandise and the company wants to make sure you actually ordered the merchandise.  The e-mail may ask you to enter personal information such as your name, address, social security number, checking or credit card account number so they can verify this information against the information they have on file.  When you click "Send," you've just played into the hands of a scam artist who will use your personal information to steal your identity.

Remember, a bank or credit card company will never ask for your account information through an e-mail.  As with traditional mail or telephone solicitations, do not give out your credit card information unless you initiate the transaction or unless you are sure the website is a secure website.

Here are some of the top e-mail scams as identified by the Federal Trade Commission.  Also listed is some advice from your local community banker on how to handle these scams.

Cable D-Scrambler Kit - "Purchase this kit and you can receive cable television transmission without paying any subscription fee."  Aside from being illegal to steal service from a cable company, you will probably find that after you assemble the kit, it doesn't work.

Advice:  Click Delete.

Business Opportunity - "Work from home.  No selling.  No meetings.  Let someone else do all of the work while you sit back and earn up to $1,000 per day."  The e-mail will give you a number to call.  You'll probably reach a voice mail instructing you to leave your name and phone number and then someone will call you back with the sales pitch.  This is probably an illegal pyramid scheme.

Advice:  Click Delete.

Chain Letter - The e-mail asks you to send $5 - $10 to four or five names on a list.  Replace one of the names with your own and forward the revised bulk e-mail.  If you fall for this scam, you may as well throw $5 or $10 in your trash can and be done with it.

Advice:  Click Delete.

Health and Diet Scams - On any given day, you probably receive at least one or two or more e-mails that offer pills and other herbal gimmicks to transform your body into a petite size 6 and grow a full head of hair on your balding head.  Beware of terms such as "scientific breakthrough," "miraculous cure," and "secret formula." 

Advice:  Click Delete.

Vacation Prize Promotions - "Congratulations!  You've been selected to receive a fabulous Caribbean Cruise."  If you click on this one, your "ship" will probably be similar to a small fishing boat and your luxury accommodations may be a grass hut.  Don't worry.  For several hundred dollars, you can upgrade.

Advice:  Click Delete.

What's the best way to keep the e-mail scammers at bay?  Click Delete!

Provided as a public service by Pennsylvania Association of Community Bankers.

Note: These tips are intended to provide accurate, yet general consumer information.  They are not intended to provide legal, accounting or other professional services.  Please contact a professional service provider for specific questions.

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Home Improvement Scams

It's spring and the time of year that many homeowners consider home improvement projects.  It's also the time of year that many scam artists are on the prowl trying to make some quick and easy money.  Unfortunately, many home improvement "contractors" target unwary consumers -- especially elderly people living alone -- with high-pressure techniques to sell unnecessary and overpriced "home improvements".

Home improvement scams top the list of national consumer complaints.  A common scam to be on the lookout for is the contractor who offers to reseal your driveway.  He's been working in the neighborhood and just happens to have some materials leftover and will reseal your driveway for a nominal fee of $50.00.  After he finishes the work, he may ask for $2,000.00 and threaten to call law enforcement officials if you don't pay.  Many people will unwittingly pay the $2,000.00 before realizing they've been "had".

Another rip-off might involve the "contractor" who comes to your door saying that while working on another house in the neighborhood, he noticed that your roof had some serious ice or snow damage.  He will then quote a price for "minor" repair and probably do nothing.  He will then tell you the damage was more extensive than he thought and ask for a much larger amount of money.

Rule number one when dealing with home improvement contractors:  Be wary of a salesperson who appears at your door uninvited.

Many of these improvement con artists employ different techniques in their sales pitch:

• They offer low prices for an item and later tell you that the item was out of stock and can only be replaced by a more expensive substitute.
• They misrepresent the urgency of the needed repair.
• They misrepresent the terms of financing.
• They add hidden extra charges above the negotiated price.

Never rush into signing a contract, especially in your home.  If it's a really good deal, it will still be a good deal tomorrow.  Make sure you read the contract in full.  If the salesperson insists on you signing the contract immediately, tell him "no thanks".

Never sign a contract that has blanks allowing an unscrupulous salesperson to go in later and put in a different amount than was agreed to orally.

When making home improvements, be sure you do your homework to see what you can afford.  Always get references and a written contract.  Be sure to check with the Better Business Bureau to see if the company has had any complaints against them and more importantly if those complaints have been settled to the customer's satisfaction.

It is best to only do business with a company after you have done extensive research or the company has been recommended to you by a family member or friend.

There are many reputable home improvement contractors who have many years of experience in your local community.  Make sure to work with them rather than the "here today and gone tomorrow" con artist.

Provided as a public service by Pennsylvania Association of Community Bankers.

Note: These tips are intended to provide accurate, yet general consumer information.  They are not intended to provide legal, accounting or other professional services.  Please contact a professional service provider for specific questions.

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Beware of Promises to Erase Bad Credit

"Don't worry about bad credit.  For only $29.99, we'll erase your bad credit history and provide you with a fresh start!"  Heard that one before?  Don't believe it or you may be throwing much more than $29.99 down the drain.  Some of these so-called "credit repair" companies have charged their customers thousands of dollars to do what you can do for yourself.

Basically, anything that a credit repair service can provide, you can accomplish on your own.  You may decide that you would rather a reputable company do the "leg-work" for you, but make sure you understand what they can and cannot legally do and make sure they are legitimate.

First, understand that if accurate negative information appears on your credit report, nothing but time and slowly rebuilding your credit history will solve the problem.  The negative information will remain on your credit report for seven to 10 years.

Sometimes a fraudulent credit repair scam will offer to provide customers with a new social security number so they can create a new credit file.  This practice is called "file segregation" and it is illegal.  If you file fraudulent information over the phone, through the mail or over the Internet, you could be charged with a federal crime and chances are the credit repair scam artist will be long gone.

If, in fact, the credit repair company is able to provide you with a new credit card, it will probably be a "secured" credit card, which you have to "secure" with a cash deposit in order to draw on the credit line.  Additionally, you are probably looking at a high application fee and high interest charges.

It is also a federal crime for a credit repair company to make false claims about their services.  Be aware that the company cannot charge you until they have performed the promised services.  These companies also need to provide you with a written contract that details what services they will provide, the total cost, and the length of time it will take to achieve results.  The company must also inform customers that they have three days to cancel their contract at no charge.

If you feel you have been defrauded by a credit repair scam artist, contact the Consumer Affairs Division of the state's Attorney General's Office.

If you find yourself with a bad credit history, you should obtain a copy of your credit report from one of the three major credit reporting bureaus.  If you find erroneous information on your report, you should write to each of the three bureaus and provide corrected information.  If you've been denied credit in the past 60 days, you are entitled to a free copy of your credit report.  Phased in over the next year, credit bureaus will be required to provide a free credit report upon request in all 50 states.

Remember, bad credit can be repaired only if you approach it with disciplined and sensible financial management.  Once you establish a new reliable payment history, your chances of receiving the credit you need will improve.

Provided as a public service by Pennsylvania Association of Community Bankers.

Note: These tips are intended to provide accurate, yet general consumer information.  They are not intended to provide legal, accounting or other professional services.  Please contact a professional service provider for specific questions.

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What is Phishing?

PHISHING - Fraudulent emails, appearing to be from a trusted source such as West Milton State Bank, or a government agency, directing you to fraudulent websites.  Once there, you are asked to verify personal information such as name, account numbers, credit card numbers and passwords.  These sites are often designed to look exactly like the site they are imitating.

Follow these Cyber-Defense Tactics:

• If you get an email that warns you - with little or no notice - that an account of yours will be shut down or interest suspended unless you reconfirm your billing information, do not reply or click on the link in the email.  Instead, contact the legitimate company cited in the email using a telephone number or web address you know to be genuine.

• Avoid emailing personal and/or financial information.  West Milton State Bank will never ask you to provide personal information such as account numbers or passwords in an email.

• Look for the "lock" icon on the browser's status bar before submitting financial information through any web site.  It signals that your information is secure during transmission.

• Review credit card and bank statements as soon as you receive them to determine whether there are unauthorized charges. 

• Report suspicious activity to the FTC - send the actual spam email to uce@ftc.gov.  If you believe you've been scammed, file your complaint at www.ftc.gov, then visit the FTC's identity theft web site at www.ftc.gov/idtheft to learn how to minimize your risk of damage from identity theft. 

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Use Precautions When Using an ATM

Automated Teller Machines (ATMs) have made our lives a lot easier.  So what if you forget to go by the bank before closing time to get money for the weekend.  No problem.  Just zip into one of the ATMs in the area and access the money in your checking or savings account day or night.  But always be aware of your surroundings and use safety precautions when using an ATM or debit card.

PULSE, the nation's leading independent financial industry-owned electronic funds network, offers several safety tips when using an ATM.  Even though you've heard them before, it never hurts to have a refresher course.  Remember the old adage:  An ounce of prevention . . .

• Always observe the ATM surroundings before conducting a transaction.

• Block the view of others when using an ATM to make sure they cannot see your Personal Identification Number (PIN).

• Look for possible fraudulent devices attached to an ATM.  If anything looks suspicious, go to another machine.

• Never allow a cashier or any other person to enter your PIN for you.

• Minimize time spent at an ATM by having your card ready.

• When using a drive-up ATM after dark, keep your doors locked, passenger windows rolled up and headlights on when conducting your transaction.

• If using an ATM at night, try to take someone with you.

• Check your ATM receipts against your monthly bank statements, just as you do your cancelled checks.

• Don't store the magnetic strip on the back of your ATM card against the magnetic strip of another credit card in your purse or wallet.  It will corrupt the strip and make your card un-useable.

• If you think you are being followed after leaving an ATM, call 911 or look for a police officer.

• If you see overgrown shrubbery, poor lighting or other potential hazards at your bank's ATM, report it to your bank immediately.

• Your ATM card is the same as cash, so make sure you keep it in a safe place.  Keep your PIN a secret and don't disclose confidential information about your card over the telephone or the Internet.

Ninety million Americans have ATM cards.  According to PULSE, some 1.4 billion ATM or debit transactions will be conducted this year alone.

By following these safety precautions and using common sense, you can enjoy this convenience rather than becoming the latest crime statistic.

Provided as a public service by Pennsylvania Association of Community Bankers.

Note: These tips are intended to provide accurate, yet general consumer information.  They are not intended to provide legal, accounting or other professional services.  Please contact a professional service provider for specific questions.