By the end of this seminar you will be able to:

1. Protecting Yourself Against FraudAdvance Fee Fraud & Computer SchemesPresented By: Jeff Marshall Security Investigator for Bank of Hawaii

2. By the end of this seminar you will be able to: • Establish an awareness of Advance Fee Fraud Schemes • Phishing, Vishing & Malware • Investment & ATM Fraud • Understand how to reduce your risk • Learn what action to take if you are victimized Objectives

3. Awareness - Advance Fee Fraud Definition “Advance Fee Fraud” is a fraudulent scheme to extract money from individuals or entities.

4. Awareness - Statistics • Advance Fee Fraud losses in hundreds of millions of dollars annually • In 2007, estimated $4.3 billion had been lost • State Department estimates that less than 10% of victims file reports

5. Awareness - Variations • Internet Sales • Lottery & Sweepstakes • Employment Advertisements • Disbursement of Wills • Transfer of Hidden Funds

6. Awareness - Internet Sales • Merchandise or services for sale on the Internet • Perpetrator responds to the ad and sends a counterfeit check • Check is greater than price of merchandise • Perpetrator requests seller to ship the merchandise and send remainder via wire transfer or cashier’s check

8. Awareness - Internet Sales Case Profile:Buy My Truck Create Your Plan Set SMART Goals Analyze Spending Monitor

9. Awareness - Lottery • Perpetrator contacts you and convinces you that you have won a lottery in a foreign country • According to the country’s laws, you are required to pay for taxes or transfer fees prior to receiving the funds

10. Awareness - Lottery • Case Profile:The Netherlands • lottery winner

11. Awareness - Lottery • Case Profile:Publisher’s Clearing • House

12. Awareness - Employment Advertisement • Utilizes employment want ads, seeking Collector, Payment Processor or Secret Shopper positions • Position requires you to get a bank account to process checks by another party in the company • You are instructed to wire 90-95% of the funds to their accounting department and you keep remainder for your assistance

13. Awareness - Employment Advertisement Case Profile:The Secret Shopper Create Your Plan Analyze Spending

14. Awareness - Disbursement of Wills • A long lost relative has recently passed away leaving you a large sum of money • You are requested to pay for legal, transfer fees and taxes prior to the disbursement of the will’s funds

15. Awareness - Transfer of Hidden Funds • A large sum of money was secreted away • You are asked to assist in the transfer of these hidden funds • You are promised a percentage of the funds you help to transfer

16. Awareness - Transfer of Hidden funds Case Profile:Transfer of Hidden Funds Create Your Plan Analyze Spending

17. Awareness - Investment Fraud

18. Awareness - Investment Fraud • Ponzi Scheme: Bernie Madoff • Pyramid Scheme • Sounds too good to be true…

19. Awareness - Phishing & Malware • Phishing: Attempts to gain or access sensitive information by masquerading as a trusted source • Malware: (Trojan Horse) Malicious software that’s specifically developed to infiltrate or cause damage to computer systems without the owners knowing or their permission- email containing a link & website • Appears to be legitimate • Solicits sensitive personal & financial information • Info is used to perpetrate fraud using your identification

20. Awareness - Phishing & Malware

21. Awareness - Phishing & Malware

22. Awareness - Phishing & Malware

24. Awareness - Phishing & Malware

27. Awareness - Smishing

28. Vishing Attack Internet Attacker “Account Locked! Call: 123-456-7890” Compromised email server Victims’ Mobile phones Wireless service network

29. Attacker Vishing- Victim Callback Vishing/Smishing victim telephones the callback number “Jane Smith Acct: 2957033945 PIN: 6820” Internet VOIP Server Telephone Network

30. ATM Skimming & PIN Capture • ATM Card Skimming is a method used by fraudsters to capture data from the magnetic stripe on the back of the ATM card. • The Card Skimming device is placed over the ATM factory installed card reader. • PIN Capturing is the method of strategically attaching a camera or image recording device to the ATM to capture the ATM user’s PIN. • These devices used are smaller than a deck of cards.

31. ATM Skimming

32. Skimming Device

33. Skimming Device

34. PIN Capturing Device • The purpose is to capture the PIN of the customer pressing the ATM keypad. • This captured PIN code will be coordinated with the Card Skimming device which captured the card data on the magnetic stripe.

35. PIN Capturing Device

36. Checkpoint Establish an awareness of Advance Fee Fraud Schemes • Understand how to reduce your risk • Learn what action to take if you are victimized

37. Understanding - Reduce Your Risk • If an offer or opportunity appears too good to be true, it probably is • Follow common business practices • Know who you are dealing with • Ensure you fully understand any business agreement

38. Understanding - Reduce Your Risk • Be wary of businesses that operate out of post office boxes or mail drops and do not have a street address • Be careful of dealing with persons who do not have a direct telephone line and who are never “in” when you call, but will return your call later • Be suspicious of business deals that require you to sign nondisclosure or no circumvention agreements

39. Understanding - Reduce Your Risk • Know the fraud variations and red flags of counterfeit checks • Don’t hesitate to verify the item with the payer’s bank via fax • Wait for checks to clear before sending any requested funds • Never allow yourself to be rushed, threatened or persuaded to do anything against your better judgment

40. Understanding - Reduce Your Risk RED Flags:Counterfeit Checks • Printing Characteristics • Borders are not even • MICR line missing • MICR line too close to border or crooked • MICR ink shiny (should be dull) • Overall printing appears blurred • Bank/corporate logos are blurred • Ink smears

41. Understanding - Reduce Your Risk RED Flags:Counterfeit Checks • Paper Stock • Absence of check printer’s name or trademark • Absence of at least one serrated edge • Poor paper quality

42. Understanding - Reduce Your Risk RED Flags:Counterfeit Checks • Check Data Characteristics • No personalized account holder name and address • Duplicate serialized check numbers • Check number in wrong place on MICR lineCommercial check – left endConsumer check – right end

43. Understanding - Reduce Your Risk

44. Understanding - Reduce Your Risk

45. Understanding - Reduce Your Risk Denise Foster age: 40 weight: 140 lbs height: 5’9” convictions: 42

46. Understanding - Reduce Your Risk Personalized accountholder name & address Check printer’s name MICR Line Check number on right of MICR Line is consistent with a consumer check

47. Understanding - Reduce Your Risk • Review your bank statements timely and report any unauthorized discrepancies to your bank immediately. • Do not provide confidential bank information over the phone or via the internet unless you are sure you know who you are dealing with. • Be diligent- It’s your money!

48. Checkpoint  Establish an awareness of Advance Fee Fraud Schemes  Understand how to reduce your risk • Learn what action to take if you are victimized

49. Take Action - What to do • Report the perpetrator • If contact via email, write their email provider at their abuse address (i.e. abuse@yahoo.com) and include the message and message header; your complaint about the suspected fraud; and ask that their account be shut down

50. Take Action - What to do • Notify your bank as soon as you suspect you might be a fraud victim • Tell the bank your story • Have the bank immediately close or freeze the subject account • Help your bank identify recovery possibilities (recent outgoing wires, funds transfers, history of related transactions) • Change all passwords & PINS (Email, accounts, ATM/Debit) • Place a fraud alert on the Credit Bureaus • Check your computer for viruses • Contact law enforcement