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April 22, 2005Mail, Internet fraud scams risingVictims get check, have to send oneByRecord-Eagle business editor TRAVERSE CITY - In recent months bank security officer Dan Caviston met winners of European lotteries, folks who've inherited thousands from unknown relatives and people who've sold their cars online at a huge profit. Several are out a lot of money, though - victims of what area banks and credit unions say is an alarming increase in the amount of fraud and other mail- and Internet-oriented rip-offs. "Two-and-a-half years ago, we didn't see any of these things," said Mark Eckhoff, senior vice president for retail banking at Fifth Third Bank in Traverse City. "Now we're seeing several a week." The schemes have various setups - international lottery winnings, off-shore oil discoveries, bogus inheritance claims - but they typically have a central thread of extracting cash or checks from victims who receive counterfeit payments like checks or money orders from the perpetrators. "It seems like the common denominator in all these scams is a check - (the victims) get one and they have to send a real one in return," said Caviston, a retired state police detective who's been a bank security manager at Fifth Third for three years. Len Classens heads the Traverse Area Security Officers Association, a local group of officials from financial institutions, law enforcement and other agencies who focus on financial security issues. Members regularly share "horror stories" of frauds circulating in the area, he said. "I think all the financials, along with law enforcement, are seeing increases in this type of theft," said Classens, chief executive officer of East Traverse Catholic Credit Union. "As this area has grown, more and more of this is creeping north." Caviston says improved computer technology enables production of authentic-looking financial documents like checks or money orders that make victims think payments are legitimate. But when cashed or deposited, they typically include bogus routing numbers that can bounce them around the country for weeks before it's determined they're counterfeit. In the meantime, scammers cash checks sent by their victims. "It's like a cottage industry," Caviston said. Security experts offer tips on minimizing risks. They advise keeping close tabs on billing statements to look for unauthorized activity, shredding financial information when disposing of it and keeping credit cards, social security cards and other financial information in a secure location. They also advise people to immediately contact their bank or other financial institution if they have a questionable situation or believe they may have been victimized.
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