Fraud

You could be the target of financial fraud by criminal groups. Be watchful. Organized crime operates globally but the victims are you and me. National and international gangs attack consumers, homeowners, and businesses – either directly or indirectly through local criminals.

Financial fraud includes stealing credit cards and personal identity; marketing illegal pyramid schemes; manipulating stocks; fraudulent telemarketing; and mortgage crime.

• Identity theft is widespread. Criminals may steal your personal information from the garbage, from the mail, or from point-of-sale terminals where your credit card is swiped. Or they can get it from the Internet. Sometimes criminals sell this information to other criminals.
• Major credit card companies lost an estimated $200 million in 2005 from credit card fraud. Debit card fraud cost another $70 million.
• Mortgage or real-estate fraud is a growing concern. Criminals will provide false personal information to obtain a mortgage. For example, thieves will use stolen identities to transfer a registered owner’s title to themselves without the owner’s knowledge. As a result, homeowners may lose their homes.

Be vigilant. Check your bank and credit card statements. Give your personal information only to businesses with a good reputation.