Member ed helps members avoid the phish hook

BOULDER, Colo., and SAN DIEGO, Calif. (11/11/04)--Members are reporting to some credit unions that they've been targeted by phishing attacks--those phony but official-looking messages that deceive consumers into disclosing financial and other sensitive information. The main deterrent to phishing, says one credit union president, is education.

"We have not been a target, but our members have, and (they) have asked us questions," says Bill Sterner, president of U of C FCU, Boulder, Colo., in Boulder County Business Report (Oct. 15). "They get an e-mail that appears to be from Citicorp, and it scares the heck out of them."

"Everybody is getting hit by it," he adds, "We all have antifraud protections built in, and we try to educate the members to call us if something appears funny," Sterner says.

Telltale phish hooks often include scare tactics that play on security fears, generic greetings instead of the individual's name, forms for the recipient to provide personal information, and links to websites to "validate" or "confirm" the account information.

Even if a member who responded to the phish hook survives financially in the short-term, "the bummer is in the long-term implications" because of its effect on the member's credit report, Sterner says. It can take two years to clear up a report and "it's very negative and very frustrating."

Sterner says the main deterrent to phishing is consumer education, covering "the old basics. Make sure you review your statements every month. Make sure here's no weird transactions."

Another credit union executive agrees. "It's time to pay attention to this scam because it's running rampant now and all of us who use computers are potential targets," says Kevin Landel, vice president of technology at California Coast CU, San Diego, Calif. "It's easy to be tricked."

Anti-Phishing Work Group reports the number of phishing incidents rose 800% in the first six months of 2004 and 4,000% between November 2003 and May 2004. Nearly 50 unique attacks a day were recorded by June, and roughly 3% to 5% of those who receive e-mils are responding, according California Coast CU.

Landel notes that the single most important tip to avoid being scammed is to not provide any personal or financial information via e-mail.

  Resource Link
Statement Stuffer: ID Theft: How to Prevent It and How to Get Over It


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