(HawaiiNewsNow) -Fraudsters are always finding new and innovative ways to extract money from individuals and entities, such as advance fee fraud. Here to explain what advance fee fraud is and how we can protect ourselves from being scammed is Regis Snatchko, security investigator with Bank of Hawaii.
- Fraudulent scheme to extract money from individuals or entities
- Victims conned into providing the fraudsters with a fee of some kind
- Usually fee that is necessary prior to winning, acquiring or receiving an allotment of a large fictitious
- Many variations – secret shopper advertised employment scam or Internet sales fraud
How do Internet sales fraud works?
- Fraudsters responds to Internet ad usually for sale of merchandise
- Fraudsters sends counterfeit check larger than price of merchandise
- Requests seller use excess amount for shipping and immediately send remainder to fraudsters via wire transfer or cashier's check
- Basically – seller is out the product and money
How do secret shopper employment scam work?
- Victim responds to Internet or newspaper employment want ad
- Receive letter welcoming them as new secret shopper for marketing company
- Assignments: evaluate retail outlets (e.g. Walmart, K-Mart, Western Union, Money Gram)
- Ruse = get you to wire transfer money to benefit fraudsters
- Check is counterfeit
How can people protect themselves from becoming a victim to these advance fee fraud schemes?
- Appears to good to be true, probably is.
- Know who you're dealing with.
- Wait for checks to clear before sending requested funds.
- Never allow yourself to be rushed, threatened or persuaded to do anything against better judgment.
In the event someone does become a victim, what should they do?
- Notify bank as soon as you suspect it
Copyright 2012 Hawaii News Now
