Scams with plastic cards

Plastic cards have rooted into our lives very deeply. Sure, this is very convenient and most of us can’t imagine their life without having a plastic card. But, along with that, popularity of banking cards has become a reason for numerous financial scams.

Few days ago there was revealed the greatest plastic card scam in the history of the United States in New York. According to the NYPD fraudsters used client’s banking card information that was received in restaurants, stores etc. in Africa, Asia, Europe and Middle East. Then they made fake cards and used them to make purchases.

Mostly, group of criminals bought Apple products. Items were resold outside the United States. Police say that scammers didn’t have any difficulties when selling items. In total, criminals managed to spend $13 million.

Work pieces for plastic cards were shipped from Russia, Libya, Lebanon and China. In some cases frauds printed fake driving licenses and attached them to cards. NYPD representative described criminals’ imagination and scam schemes as striking.

Investigation lasted for about 2 years. During this time police had to translate numerous records in Russian, Chinese and Arab languages. When searching police withdrew equipment for making fake cards, weapon, $650,000, shoes, watches, Apple devices and many more.     

As you see, there is nothing easier than becoming a victim of a plastic card fraud. You can find millions of complaints about Financial scams in the web. More and more people suffer from criminal activities and lose their money. The worst thing is that criminals invent more sophisticated ways to scam people.

If you are worried about financial scams with plastic cards, tips given below will help you to avoid falling a victim of a crime.

• cash your card only in reliable ATMs. It’s better to use ATMs in well secured places (offices, trade centers banks). Pay attention to how ATM looks like – if something seems suspicious, it’s better to use another device.
• NEVER tell anyone pin-code from your banking card. If someone calls you allegedly from the bank and ask to tell number of your card or pin-code, you should be aware. The first thing you should do is to call the number printed on your card and consult specialists from your bank.
• when filling in banking documents that include providing your banking account number, be very careful and attentive. Don’t provide the whole account number – the last four digits are enough. Otherwise, frauds can use the information you provide.
• when inputting pin-code, cover the keyboard with your hand. This trick is easy, but still very effective – no one will see the digits you enter.
• enable SMS notification service about state of your account. Many banks provide this service for free. SMS notifications will help you to be aware of all transactions and charges. 

How to report identity theft

Identity theft is one of the most widespread and fastest growing financial scams in the United States. About 10 million people fell victims of this fraud last year.

To notice identity theft you should be very attentive and pay attention to these warning signs:

-          strange activity on your financial accounts;

-          credit cards and loans you didn’t apply for (when checking credit report);

-          purchases you didn’t make.

As soon as you understand you have got into identity theft, you have immediately report financial scam. 

Notify the authorities about identity theft. The first thing to do is to file a police report about identity theft. If the local police department doesn’t have “identity theft” report, you should file a "miscellaneous incident" report. It’s important to make a copy of your report.

Also, file your scam report to the Federal Trade Commission that is a powerful law enforcement establishment.

Contact your bank. Call to your bank and tell that you have become a victim of the identity theft. Bank will immediately freeze your account and it will be impossible for violators to use your assets. By the way, many banks offer identity theft alert solutions. If you install such alarm, you will be always aware of any unauthorized activities with your account.

Notify other financial institutions you deal with. Contact all financial institutions that deal with your account and report identity theft.

Report to the credit agencies. There three main credit bureaus in the United States: TransUnion, Experian and Equifax. These companies make reports on individuals’ credit history.

The most important thing in case of experiencing identity theft is report financial scam as quickly as possible. Don’t hesitate contacting all organizations that might be helpful in your situation. The sooner you file a scam report, the more chances to save your money and catch frauds police will have.

Sure, it’s always better to prevent scam than deal with its consequences. The tips given below will help you to lower risk of becoming victim of the identity theft.

-          monitor your credit. At least once a month you should check your credit history in order to notice unauthorized activities in time;

-          record all your transactions. Keep a record of every transaction you make (purchases, money transfers etc.);

-          install security software – it will help to protect your PC from unauthorized intrusions;

-          shred documents that contain any financial information about your accounts or credit records. Thus, you will secure yourself from getting your personal data stolen;

-          install a fraud alert so you could be always aware of unauthorized activities on your account’

-          look through the latest scam reviews in order to know what are the main dangers you may face.

Be careful and attentive, follow all the safety rules and thus you will have more chances to avoid getting into financial scam. But if you happen to fall a victim of a financial fraud, don’t hesitate reporting it and saving your money! Find here more information about "how to protecting tour bank accounts".

MLM: myths and reality

Today one can find lots of offers to make money in different MLM projects. Along with that there are many myths and legends about multi-level marketing.

Many of those who gave faced online MLM projects mistakenly think that multi-level marketing is a financial pyramid. In reality, the idea of such marketing is distributing products by different ways and getting remuneration for that.

Usually, there are no limits in how much money distributors can make. But, in reality, very few of them achieve success. That’s why there are so many myths about multi-level marketing:

MLM is a scam. This myth appeared because many financial pyramids pretended to be MLM projects.

How to distinguish MLM project from a financial pyramid? The first sign is an entrance fee (legit company will not make you pay huge sums of money). Then look at the product offered by the company. If it’s useless, be sure you are dealing with fraudsters.  

You can’t make money in MLM. This myth was made up by those who tried to make money in MLM, but failed. If you are sure you in what you are doing and ready to work hard, hardly should you believe such myths.   

MLM is the best business. Multi-level marketing companies have been at the market for 60 years, and not a single one took leading positions in the world. Moreover, multi-level marketing takes very small part in the sphere of commodity turnover.  

MLM is a way to independence. One shouldn’t think about independence in MLM projects as the rules are the same for all participants. Even on the highest levels you will have to take into account general strategy.

Multi-level marketing is a guaranteed success and wealth. To tell the truth, not everyone manages to make big sums of money in such projects. To make money in an MLM project you have to strictly follow recommendations and work hard 24/7. And there is no guarantee you will have an amazing profit! That’s why you should understand that, probably, you will lose a lot when being in this business.

Despite all the negative features of multi-level marketing, you can make money here. The most important thing in multi-level marketing is to start a money machine that will bring you profit later. Here are some tips that will help you:

1. Design your own website. Well-designed website can play very important role in a customer’s decision to make a purchase. When advertising products, give direct link to your website.    

2. Organize your time right. As soon as you join MLM project, you will have to plan your time. Include self-improvement, work and rest into your agenda. Try not to forget anything as correct time planning is a key to success.

3. Improve yourself. Visit seminars, trainings, try to think positively and develop yourself. Create an image of successful person, and soon you will become one.

Popular ways to scam America

“If you come to the United States to commit crimes, you may stay here longer than you planned”, - once said FBI agent when investigating the case of Russian hacker students.

U.S. Citizenship and Immigration Services (USCIS) and Department of Homeland Security (DHS) want to toughen conditions of getting J-1 visa. The reason is numerous crimes committed by J-1rs in the United States.

Let me remind you, that owners of J-1 visa are students for Eastern Europe. Visa, given them within the conditions of “Work and Travel” program, allows them working and travelling in the USA 3-5 months. 

The last straw that broke the camel’s back was huge cybercrime committed by a group of Russian students living in New York. In March these guys stole $3 million from law-obedient Americans.

Here is the list of the most popular crimes committed by J-1rs.

1. Job offer scam. To enter America, students must receive job offer form their future employer. Finding an employer during economic crisis is not an easy thing to do. That’s why some J-1rs make up job offers (examples of ones are easy to find in the web).

2. Thefts in supermarkets. Last summer only in New York police detained about 50 foreign students who stole clothes in stores. In most cases fans of shoplifting are girls who dream about expensive and at the same time free designer clothes.

3. “Commercial” marriage. One of the ways to become legalized in the US is to marry American citizen. At the black market it costs $25,000 – 30,000. This criminal business prospers all over the United States.

4. Studying without lessons. In Florida, California and Texas in summer 2011 there were closed educational institutions where students didn’t attend lessons and had no exams. In most cases, clients of those institutions were owners of J-1 visa. Thus, students killed two birds with one stone: were legally present on the territory of the United States and didn’t spend time on studying.   

5. Selling Social security and ID. Before leaving America J-1rs often sell Social Security number and State ID. These two documents owned by one person can be sold in New York at $350 – 400. As a rule, SSN and State ID are used for further financial scams.

6. Fake checks. One more way of making money before leaving America is to put to your banking account fake check. As a rule, J-1rs cross up their former employers. There were cases when scammers made copies of checks on color printer, faked signatures of their owners, wrote down sum and brought to bank. The fraud was revealed after student withdrew money and left the country. 

7. Work without license. Having J-1 visa one can get only low-paid and difficult job. Naturally, no one wants to spend time on corn fields or washing up in New York cafe. That’s why a part of J-1rs find office work that requires license. Sometimes employers prefer paying $10 to a self-taught person than $40 to licensed specialist.   

Identity Tax Scams in Florida

Florida is a pure heaven on Earth. Shining sun, ocean, palm trees, freedom and absolute joy. Most people come to Florida to rest. But there are some who come to this place to hunt. To hunt for money.

This year there appeared new generation of scammers who prey upon senior citizens. These criminal manage to steal federal tax refunds using identity theft. Unfortunately, it takes taxpayers several month to find out they were scammed. What also makes me sad, is that one can hardly see headlines about scammed taxpayers as this is very popular crime.

Since 2008 about 500,000 taxpayers have become victims if identity tax scams according to the Internal Revenue Service. Fraudsters invented new and more exquisite ways to steal SSN’s, drivers’ licenses and bank accounts.

Melanie Payne, The News-Press reporter said: “Most of those nearly half-million taxpayers found out they were victims when they tried to file their taxes and couldn’t do it electronically; or when weeks passed and they didn’t get their income tax refund; or when, in the summer, a letter came from the IRS telling them they had income they didn’t report on their tax return.”  

Everyone says tax identity theft is a new kind of scam that becomes more and more widespread. And fight against this kind of crime becomes as serious as fight against drug dealing.

According to the information provided by police and IRS, Florida takes the first place in a list of states with frequent identity thefts. The Sunshine State has a great concentration of older citizens who are an easy prey for fraudsters.

Certainly, the IRS can stop refund on fraudulent returns, but the thing is that the crime has to be reported at first. And how can that happen if victims find out that they have been scammed only after several months after the scam? 

Recently, there have appeared many complaints about IRS since the agency deals with identity thefts not as effectively as it should. Consumers think that solving issues takes too long as victims only have to fill out “identity theft form” and wait for response.

In order to avoid becoming a victim of identity tax scams, never give your Social Security number or baking information to anyone. Be extremely careful when making online purchases, and if you feel the store is fraudulent, you’d better avoid dealing with it.

As soon as you provide a thief with your personal information, you may forget about all your money. Having your Social Security Number frauds can easily steal assets from your banking account.

The most interesting thing that quite often identities can be stolen from credit card and medical records. Anyway, identity theft tax scams are very popular today, and you should be careful in order to becoming a victim of thieves.

This type of crime is growing, not decreasing, so you should follow all the precautions to keep your money and identity.  

5 modern financial scams

Excessive greediness and scams made many companies bankrupt. Frauds are not tired of scamming honest and naive people; some criminal even manage to fool worlds’ financial establishment. Although, in most cases the result of scams is a jail. In this article I’m going to tell you about the most scandalous scams and remind that anyone of us can get into a financial trap.

1. French fraud Christophe Rocancourt, who pretended to be a member of Rockefeller family and Bill Clinton’s friend, arranged several scams that brought him $40 million. He deluded American moneybags introducing himself as a well-known financier or film producer and swindled money of them. In 2000 Christophe was arrested, but he managed to escape to Canada. In March of 2002 Canadian government extradited the fugitive to the United States. At the court he was pleaded of charges of bribery, theft, smuggling, fraud, grand larceny and perjury.

2. Société Générale Bank trader Gerome Kerviel started secretly trading in 2005. According to various sources, the French controlled 50 billion Euro. During that period Gerome caused to bank $8 billion damage. Kerviel himself stated that he started trading to achieve great results, show them to the boss and get bonuses. But, actually, he just wanted to steal that money. At the court Kerviel was pleaded of charges of fraud and breach of trust.

3. Everyone knows the name of Bernard Madoff. “Forbes” calls him the robber of the century. Madoff Securities Company founded over 40 years ago brought profit to its clients. But, in the end, the company that appeared to be a financial pyramid lost $50 billion. The list of Madoff’s victims includes many American and international banks and funds such as BNP Paribas, HSBC, Nomura Holdings and even Steven Spielberg.

4. One of the most scandalous scams in the history of the USA was organized by Bernard Ebbers, head of the WorldCom Company. Ebbers did his best to expand his business. In the beginning of the 90’s his company made more than 60 takeovers.

Problems appeared in 2000 when Ebbers had debts and started selling his property. After WorldCom stopped company takeovers, it just got bankrupt. Ebebrs couldn’t save the company, and in 2002 he resigned. Afterwards, his financial machinations were revealed.

Some time later Ebbers was sentenced to 25 years in jail.  

5. Dennis Kozlowski and Mark Schwartz were top-managers of Bermuda company Tyco Industrial. These two men managed to turn the company into international conglomerate. But their scandalous fame Kozlowski and his partner got thank to excessive expenses. With the help of his financial director Shwartz, Kozlowski spent about $600 million. Everyone was envy when looking at these guys: they threw parties on islands, bought exclusive clothes and jewelries in fashionable boutiques. Moreover, they men spent money of the company to buy paintings of the world-known painters.

The real lie of the land was revealed when companions started getting rid of their stocks. Dennis Kozlowski and Mark Schwartz were sentenced to 25 years in jail.