Virtual villains ruin accounts, credit ratings

  • Published
  • By Tech. Sgt. Russell Wicke and Maj. David Honchul
  • Air Combat Command Public Affairs
LANGLEY AIR FORCE BASE, Va. (AFPN) --  Crooks made off with an estimated $5 billion from individuals whose identities were stolen last year.

In what is becoming America's fastest growing type of robbery, identity theft involves a shrewd charade instead of a hold-up at gun point, and military members increasingly are becoming the targets of these threats.

"Phishing e-mails are a tremendous threat," said Brig. Gen. John Maluda, director of communications at Headquarters Air Combat Command. "The bottom line is anyone with a computer and Internet access can create loads of trouble for our unsuspecting Airmen."

An example streaming across the cyber world is a variation of what has been dubbed the "Nigerian Scam."

The scam begins when an individual sends an e-mail explaining how he or she has come into possession of an incredible sum of money and now needs help getting the money out of his or her country.

In some cases, the individual claims to be a military member serving in Iraq, who has come into possession of $200 million of Saddam Hussein's money.

When the instigators find people who are willing to open bank accounts with their own money, they lure the victims into putting more money into the accounts with promises of huge payouts when it's all over. Once the perpetrator feels the situation has been pushed to the limit, the money is drained from the account, leaving the victim with an empty wallet.

According to the Secret Service, the Advance Fee Fraud -- the technical name for this type of crime -- grosses hundreds of millions of dollars annually and the losses continue to escalate. The Internet Crime Complaint Center received more than 231,000 complaints in 2005 -- up 12 percent from 2004. The cost of those frauds reached more than $183 million.

Another type of phishing scam seeks to steal an individual's identity. This usually comes in the form of a bank notice warning that critical information is needed to secure an account.

An example of this is the fraudulent e-mail sent out with the name Bank of America. The notice asks for information a thief would need to wipe out a bank account and a good credit rating. Because the government travel cards are affiliated with Bank of America, officials in Air Combat Command are concerned for Airman cardholders.

"This could be a particular threat to our Airmen," said Maj. Sandi Swanton, ACC Staff Judge Advocate chief of information law. "Banks don't contact you by e-mail. They do it by mail, and even then, you are required to make initial contact by calling after that."

Major Swanton added that even when banks do contact customers by mail, they do not request information like account numbers, social security numbers or PINs. Banks already have this information.

She also added that the Bank of America e-mail scam, like many others, had tell-tale signs that it wasn't a real notice, despite the use of what looked like official company symbols and letterhead.

"If you look closely, you can see it's not professionally done," she said.

There are often grammar and punctuation errors, and if that's not enough to raise a red flag, the dire warnings of "account closures" are a sure tip.

"If you think it's something real, you should contact them," Major Swanton said, "and not using the information given in the e-mail. Use the phone number on the back of your credit card and call."

These notices can strike at any time, any where. One military member reported receiving a notice for her husband the week after he deployed. The notice, allegedly from Chase Bank, stated his credit card was being used out of the area, and that if he didn't verify within 48 hours, the account would be closed. Fortunately, the member called the bank and an official advised her it wasn't legitimate.

"Chase advised they would call if there was a problem with the account," the member said. "That's consistent with an experience I once had with another card; the company called my home to check on the out-of-country use of the card."

While firewalls and spam blockers can catch many of these scams before they hit inboxes, there are those that manage to slip through the cracks.

One other concern for command officials is Web sites that look like legitimate government sites, but are not affiliated with the military or government. These sites are intended to trick people into passing personal information. The Federal Trade Commission warns that once people divulge their personal information on these bogus sites, the scam operators can steal identities and make purchases in the person's name.

When Web sites claim to represent military or government agencies, ACC officials recommend members look closely at the Web addresses, particularly those ending in ".org" or ".com." Virtually all official government Web sites end in ".gov," or in the case of military sites, ".mil."

Even with commercial companies, members should take care, especially for unsolicited requests for their personal information. Experts say the best thing to do with unsolicited offers and e-mails is to delete or ignore them. However, if people do become victims of these crimes, there are agencies that can help.

Servicemembers can file complaints through Military Sentinel. This joint project of the Federal Trade Commission and the Department of Defense is the first online consumer complaint database specifically tailored to the needs of the military community. The project is designed to give military service members in all parts of the world a convenient way to report fraud directly to law enforcement officials by visiting www.consumer.gov/military.

To report cyber crimes or internet fraud, the Federal Bureau of Investigation and the National White Collar Crime Center established the Internet Crime Complaint Center  at www.ic3.gov.

To report suspected credit card fraud, contact the three major credit reporting bureaus: Equifax at (800) 525-6285, Experian at (888) 397-3742 and TransUnion at (800) 680-7289.

To report fraudulent bank accounts set up in your name, contact Telecheck at (800) 366-2425 or the International Check Services Company at (800) 526-5380.

Airmen can also go to their local wing legal offices for consultation regarding identity theft and consumer issues. 

(Courtesy of Air Combat Command News Service)