NJVS Personal Financial Literacy - Unit 4.7 Fraud & Consumer Protection

Marketing Practices

Consumer protection in response to: - internet, telecommunications, and direct-mail fraud; - deceptive spa - fraudulent business, investment, and work-at-home schemes - violations of the Do Not Call provisions of the Telemarketing Sales Rule ( Telemarketers CAN NOT call you if you register on the DO NOT CALL LIST)

**Internet Access Service Scams

Consumers are tricked into cashing a free check that switches their internet service

Advertising Practices

FTC enforcing the nation's truth-in-advertising laws - Emphasis on claims for food, over-the-counter drugs, dietary supplements, alcohol, and tobacco - Consumer protection related to high-tech products and the Internet( such as the dissemination of spyware)

**_______________Works to protect consumers against unfair deceptive or fraudulent practices in the marketplace

Federal Trade Commission (FTC)

Free Software & File Sharing

File-sharing can have a number of risks If you don't check the proper settings, you could allow access not just to the files you intend to share, but also to other information on your hard drive, like your tax returns, email messages, medical records, photos, or other personal documents You may unwittingly download pornography labeled as something else or you may download material that is protected by the copyright laws, which would mean you could be breaking the law. If you decide to use file-sharing software, set it up very carefully. Take the time to read the End User License Agreement to be sure you understand the side effects of any free downloads.

Use Firewalls

Firewalls help keep hackers from using your computer to send out your personal information without your permission. A firewall is like a guard, watching for outside attempts to access your system and blocking communications to and from sources you don't permit. BE SURE YOUR FIREWALL IS TURNED ON & UPDATE REGULARLY

Examples of billing errors:

- Unauthorized charges: Federal law limits your responsibility for unauthorized charges to $50; - charges that list the wrong date or amount - charges for goods and services you didn't accept or that weren't delivered as agreed - math errors - failure to send bills to your current address — (MUST PROVIDE creditor with your change of address, in writing, at least 20 days before the billing period ends)

**Seven Practices for Safer Computing

1) Protect your personal information. It's valuable. 2) Know who you're dealing with. 3)Use anti-virus software and a firewall, and update both regularly 4) Be sure to set up your operating system and Web browser software properly, and update them regularly 5) Protect your passwords 6) Backup important files 7) Learn who to contact if something goes 7 wrong online

If You Experience a Billing Error you MUST

1. Write to the creditor at the address given for "billing inquiries,NOT the address for sending your payments, 2. Include your name, address, account number, and a description of the billing error 3. Send your letter so that it reaches the creditor within 60 days after the first bill with the error was mailed to you. 4. Send your letter by certified mail; ask for a return receipt so you have proof of what the creditor received. 5. Include copies (not originals) of sales slips or other documents that support your position. Keep a copy of your dispute letter. 6. The creditor must acknowledge your complaint, in writing, within 30 days after receiving it, unless the problem has been resolved. 7. The creditor must resolve the dispute within two billing cycles (but not more than 90 days) after getting your letter. 8. If it turns out that your bill has a mistake, the creditor must explain to you — in writing — the corrections that will be made to your account. 9. In addition to crediting your account, the creditor must remove all finance charges, late fees, or other charges related to the error. 10. If the creditor's investigation determines the bill is correct, you must be told promptly and in writing how much you owe and why. You may ask for copies of relevant documents. At this point, you'll owe the disputed amount, plus any finance charges that accumulated while the amount was in dispute. You also may have to pay the minimum amount you missed paying because of the dispute. 11. If you disagree with the results of the investigation, you may write to the creditor, but you must act within 10 days after receiving the explanation, and you may indicate that you refuse to pay the disputed amount. The Federal Trade Commission (FTC) enforces the FCBA for most creditors except banks. If you think a creditor has violated the FCBA, file a complaint with the FTC.

Hacker

A person who uses the Internet to access computers without permission.

**How can you protect your computer passwords?

Change your password every 90 days (AT LEAST) avoid Common Words in your password Use a password at least 5 characters long ( READING SAYS 8 CHARACTERS LONG)

Bureau of Consumer Protection Responsibilities

Advertising Practices Financial Practices Marketing Practices. Privacy and Identity Protection

Use Anti-Virus Software

Anti-virus software protects your computer from viruses that can destroy your data, slow your computer's performance, cause a crash, or even allow spammers to send email through your account. It works by scanning your computer and your incoming email for viruses, and then deleting them. To be effective, your anti-virus software should update routinely with antidotes to the latest "bugs" circulating through the Internet. Most commercial anti-virus software includes a feature to download updates automatically when you are on the Internet

Protect your personal information. It's valuable.

Anyone can be a victim of identity theft. According to a Federal Trade Commission (FTC) survey, there are almost 10 million victims a year Following these tips can help minimize your risk while you're online: ■ If you're asked for your personal information— your name, email or home address, phone number, account numbers, or Social Security number—find out how it's going to be used and how it will be protected before you share it. If you have children, teach them to not give out your last name, your home address, or your phone number on the Internet. ■ If you get an email or pop-up message asking for personal information, don't reply or click on the link in the message. DO NOT respond to requests for your personal or financial information. If you believe there may be a need for such information by a company with whom you have an account or placed an order, contact that company directly in a way you know to be genuine. DO NOT send your personal information via email because email is not a secure transmission method. ■ If you are shopping online, don't provide your personal or financial information through a company's website until you have checked for indicators that the site is secure, like a lock icon on the browser's status bar or a website URL that begins "https:" (the "s" stands for "secure"). Unfortunately, no indicator is foolproof; some scammers have forged security icons. ■ Read website privacy policies. They should explain what personal information the website collects, how the information is used, and whether it is provided to third parties. The privacy policy also should tell you whether you have the right to see what information the website has about you and what security measures the company takes to protect your information. If you don't see a privacy policy—or if you can't understand it—consider doing business elsewhere.

Email Attachments & Links

Attachments or links that require the receiver to open an email attachment or link so that a program can infect their computer/device Hackers often lie to get you to open the email attachment or click on a link. Some virus-laden emails appear to come from a friend or colleague; some have an appealing file name, like "Fwd: FUNNY" or "Per your request!"; others promise to clean a virus off your computer if you open it or follow the link. Don't open an email attachment—even if it appears to be from a friend or coworker—unless you are expecting it or know what it contains. You can help others trust your attachments by including a message in your text explaining what the attachment is for or letting them know what to expect

**Health Care Scams

Claims super cures are available and proven to cure certain diseases

Be sure to set up your operating system and Web browser software properly, and update them regularly

Hackers also take advantage of Web browsers (like Internet Explorer or Netscape) and operating system software (like Windows or Linux) that are unsecured. Change the settings in your browser or operating system and increasing your online security. Check the "Tools" or "Options"menus for built-in security features. If you need help understanding your choices, use your "Help" function. Your operating system also may offer free software "patches" that close holes in the system that hackers could exploit. In fact, some common operating systems can be set to automatically retrieve and install patches for you. If your system does not do this, bookmark the website for your system's manufacturer so you can regularly visit and update your system with defenses against the latest attacks. Updating can be as simple as one click. Your email software may help you avoid viruses by giving you the ability to filter certain types of spam. It's up to you to activate the filter. If you're not using your computer for an extended period, turn it off or unplug it from the phone or cable line. When it's off, the computer doesn't send or receive information from the Internet and isn't vulnerable to hackers.

Learn Who to Contact if You're Hacked

Hacking or Computer Virus If your computer gets hacked or infected by a virus: ■ Immediately unplug the phone or cable line from your machine. Then scan your entire computer with fully updated anti-virus software, and update your firewall. ■ Take steps to minimize the chances of another incident. ■ Alert the appropriate authorities by contacting your Internet Service Provider (ISP) and the hacker's ISP (if you can tell what it is). You can usually find an ISP's email address on its website. Include information on the incident from your firewall's log file. By alerting the ISP to the problem on its system, you can help it prevent similar problems in the future. ■ Contact the FBI at www.ifccfbi.gov. To fight computer criminals, they need to hear from you.

**Adam has an account with Chase Bank. He receives an email that looks like it is from the bank. What should Adam do?

If Adam suspects a spam, he has to report (forward the received email) to [email protected] and to his bank) Contact the bank using numbers from his bank statements and verify the request Open a new browser window and type the URL address in the address field. He needs to make sure the URL address does not change and that it's the bank's website

Learn Who to Contact if You Mistakenly Divulged Personal Information

If you believe you have mistakenly given your personal information to a fraudster, file a complaint at ftc.gov, and then visit the Federal Trade Commission's Identity Theft website at www.consumer.gov/idtheft to learn how to minimize your risk of damage from a potential theft of your identity.

Learn Who to Contact if you Get Deceptive Spam

If you get deceptive spam, including email phishing for your information, forward it to [email protected]. Be sure to include the full header of the email, including all routing information.

Back Up Important Files

If you have important files stored on your computer, copy them onto a removable disc, and store them in a safe place.

Know who you are dealing with

It's simple for online scammers to impersonate a legitimate business, so you need to know who you're dealing with. A legitimate business or individual seller should give you a physical address and a working telephone number at which they can be contacted in case you have problems. BEWARE of: Free downloads Free Virus Protection Offers Free software and file sharing Email attachments and links Spam or Pop-u Messages (Phishing)

**Protect Your Passwords**

Keep your passwords in a secure place, and out of plain view. Don't share your passwords on the Internet, over email, or on the phone. Your Internet Service Provider (ISP) should never ask for your password. In addition, hackers may try to figure out your passwords to gain access to your computer. You Should: ■ Use passwords that have at least eight characters and include numbers or symbols. ■ Avoiding common words: some hackers use programs that can try every word in the dictionary. ■ Not use your personal information, your login name, or adjacent keys on the keyboard as passwords. ■ Changing your passwords regularly (at a minimum, every 90 days). ■ Not using the same password for each online account you access. One way to create a strong password is to think of a memorable phrase and use the first letter of each word as your password, converting some letters into numbers that resemble letters. For example, "How much wood could a woodchuck chuck" would become HmWc@wcC.

Anti-Virus Software

Look For anti-virus software from the websites of software companies or buy it in retail stores. Look for anti-virus software that: ■ Recognizes current viruses, as well as older ones. ■ Effectively reverses the damage. ■ Updates automatically

**According to "Seven Practices for Safe Computing", which of the following are true?

None of the indicators on a website GUARANTEE that it is completely secure, some scammers have forged security icons using a file sharing software can have a number of risks including other people to access your private files without realizing it and downloading copyright material If you get an email or pop up message asking for personal information, don't reply or click on the link in the message

**Travel and Vacation Scams

Offers a great getaway with lots of extras at a super low price

Parental Controls

Parental controls are provided by most ISPs, or are sold as separate software. There are no substitutes for parental supervision Talk to your kids about safe computing practices, as well as the things they're seeing and doing online.

Financial Practices

Protects consumers from deceptive and unfair practices in the financial services industry - Protects consumers from predatory or discriminatory lending practices, deceptive or unfair loan servicing, debt collection, and credit counseling or other debt assistance practices

**Fair Credit Billing Act (FCBA)

Protects consumers from unfair billing practices and provides a mechanism for addressing billing errors

Learn Who to Contact For Internet Fraud

Report it to the Federal Trade Commission, at ftc.gov. The FTC enters Internet, identity theft, and other fraud-related complaints into Consumer Sentinel, a secure, online database available to hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.

Privacy and Identity Protection

Safeguards consumers' financial privacy - Investigates breaches of data security - Works to prevent identity theft and aids consumers whose identities have been stolen - Implements laws and regulations for the credit reporting industry (including the Fair Credit Reporting Act)

Phishers

Send spam or pop-up messages claiming to be from a business or organization that you might deal with—for example, an Internet service provider (ISP), bank, online payment service, or even a government agency. The message usually says that you need to "update" or "validate" your account information. It might threaten some dire consequence if you don't respond The message directs you to a website that looks just like a legitimate organization's, but isn't. The purpose is to trick you into divulging your personal information so the operators can steal your identity and run up bills or commit crimes in your name. **DON'T take the bait: never reply to or click on links in email or pop-ups that ask for personal information. Legitimate companies don't ask for this information via email. If you are directed to a website to update your information, call the company directly, using contact information from your account statements OR Open a new browser window and type the URL into the address field, watching that the actual URL of the site you visit doesn't change and is still the one you intended to visit. Forward spam that is phishing for information to [email protected] and to the company, bank, or organization impersonated in the phishing email. Most organizations have information on their websites about where to report problems.

Virus

Software that spreads from computer to computer and damages files or disrupts your system.

Zombie Drones

Some spammers search the Internet for unprotected computers they can control and use anonymously to send unwanted spam emails. If you don't have up-to-date anti-virus protection and a firewall, spammers may try to install software that lets them route email through your computer, often to thousands of recipients, so that it appears to have come from your account. If this happens, you may receive an overwhelming number of complaints from recipients, and your email account could be shut down by your Internet Service Provider (ISP).

Spammer

Someone who sends mass amounts of unsolicited commercial email

Spyware

Spyware is software installed without your knowledge or consent that adversely affects your ability to use your computer, sometimes by monitoring or controlling how you use it To avoid spyware: Do NOT install any software unless you know exactly what it is Use anti-virus software that includes anti-spyware capability OR You can install separate anti-spyware software, and use it regularly to scan for and delete any spyware programs that may sneak onto your computer.

** TRUE OR FALSE: A virus software that spreads from computer to computer and damages files

TRUE

Fair Credit Billing Act (FCBA)

The Fair Credit Billing Act is designed to protect consumers from unfair billing practices and to provide a mechanism for addressing billing errors in "open end" credit accounts, such as credit card accounts, revolving charge accounts (department store accounts). It doesn't cover installment contracts — loans or extensions of credit you repay on a fixed schedule.

Federal Trade Commission (FTC) Bureau of Consumer Affairs

The Federal Trade Commission is an independent agency of the United States government whose principal mission is the enforcement of civil U.S. antitrust law and the promotion of consumer protection. HELPS COMBAT IDENTITY THEFT The Federal Trade Commission's Bureau of Consumer Protection works to protect consumers against unfair, deceptive, or fraudulent practices in the marketplace - Conducts investigations - Sues companies and individuals who violate the law - Develops rules to protect consumers - Collects complaints about consumer fraud and makes them available to law enforcement agencies across the country.

Internet Fraud

The internet is fast becoming a magnet for fraud in advertising, marketing, finances, and identity theft The Internet can give online scammers, hackers, and identity thieves access to your computer, personal information, finances, and more

**Internet Auction Scams

Virtual Marketplaces that offer great deals on products (to good to be true)

**Cathy has received a credit card bill and notices that it contains some unauthorized charges. She should?

Write to the creditor at the address listed for "billing inquiries" Keep a copy of her dispute letter Send her letter to the creditor so that it reaches the creditor within days after the first bill with the error mailed to you

Reporting Fraud

You must immediately report it to local law enforcement which will investigate the matter and take appropriate action. You should also report fraud to the Federal Trade Commission, which collects complaints about companies, business practices and identity theft. When you submit a complaint, it helps the FTC detect patterns of wrong-doing and may lead to investigations and prosecutions. Each individual complaint does not get investigated or resolved by the FTC, but if enough people complain about a certain company then the FTC may investigate. Your complaint will also be entered into a database used by civil and criminal law enforcement authorities around the world, and could help in solving crimes.