FBI Warning on EPPICards

The Federal Bureau of Investigation is warning the users of EPPICards to watch out for a phishing attack. EPPICards are used to deliver child support payments to recipients in 15 participating states. These cards act like debit cards.

Phishers are sending text messages and emails asking users to logon to a linked web site and verify confidential data or complete a survey, which then asks for confidential data. The site and survey is a fake and the data will be used to steal from those entering the account numbers, PINs and other information.

Users should be aware that this is not a method used to verify your information.

Read more on the FBI's bulletin here.

FTC Settles "Wal-Mart Shopping Spree" for $28 Million

Brian K. MacGregor was the architect of the "Wal-Mart Shopping Spree" scam and he is now paying the price. Several of his companies were involved in a scam where consumers were tricked into disclosing bank account information. The consumers were promised shopping sprees at Wal-Mart, Macy's, movie tickets or vouchers for free gas. Items were promised for free, but with a shipping and handling fee to be paid by the consumer. Some thought they were paying monthly fees for a program membership.

Macgregor violated the FTC Act and Telemarketing Sales Rules. As a consequence, a fine, representing the money paid in the scheme of $28.2 Million is to be paid. The participants are also barred from participating in this type of activity in the future.

The FTC says this:

Consumers who had money taken by any of the corporate defendants without their express informed consent may send a letter to: Federal Trade Commission, attn.: Faye Chen Barnouw or Jennifer M. Brennan, 10877 Wilshire Blvd., Suite 700, Los Angeles, CA 90024. The letter should identify which company took money from them, include the dates and amounts of the withdrawals, and contain any supporting documentation. Consumers who have already sent this information to the FTC do not need to resubmit it. Consumers seeking more information about this case may call the case hotline number: 202-326-2090. More information is available on the FTC web site.

What is your bank account worth?


For you, your bank account is worth every dollar you have in it plus peace of mind. But to the thief who gets your bank account information, it is worth just a little less than "face value" because there has to be some equity in it for the buyer. Many thieves who get your data aren't the same scoundrels who'll empty it. The first thief ends up with so many account numbers that they sell them off. McAfee Avert Labs found an active site where these credit card accounts are bought and sold.

On this site, a US account at Washington Mutual with an available balance of $14,400 sold for $924 which is $.06 on the dollar. (The pounds and euro values are converted to dollars for ease in comparison.) A Citibank account based in the UK with an available balance of $20,345 sold for $1,310. Again, $.06 on the dollar.

And to demonstrate an honor among thieves, when this credit card information is purchased it comes with a guarantee. If the buyer isn't able to access that account within 24 hours, a replacement account of equal value will be provided. Access to the account would be cut off if, for example, the owner notified the bank that the card was lost.

It is very important that consumers check their statements when they arrive to review the transactions in your deposit and credit accounts. If a transactions looks suspicious, check it out immediately. If any were not authorized by you, immediately notify your bank.