Emergency: Part I

Fraud: What is it and how does it affect me

Editors Note: The following story was contributed by Western Nebraska Investigations & Process Service. They are a licensed, bonded and insured agency with over 37 years of experience. They are located in North Platte at the US Bank Building, Suite 202 - 301 N. Bailey.
308-534-9003.

By simple definition, fraud involves an intentional deception or misrepresentation intended to result in an unauthorized benefit. This abuse and deception occurs in many guises, but often involves:
· False insurance claims/adjustments.
· Medicare/Medicaid abuse.
· Personal Identity Theft.
· Investment Schemes.

How does fraud affect you? Believe it or not, usually by attacking your income, in some form or another. As an example, some authorities believe that Insurance fraud constitutes a 100 billion dollar a year problem. The US GAO estimates that $1 out of every $7 spent on Medicare is lost due to fraud and abuse. In 1998, Medicare lost nearly 12 billion dollars to fraudulent or unnecessary claims, which results in higher costs to Americans.

Financial fraudsters (white collar criminals?) bilk millions annually from unsuspecting "clients" who readily believe their "get rich quick" schemes. Thousands of honest Americans bent on "fast returns" and "no risk" investments lose entire life savings in the blink of an eye.

An ever increasing form of fraud that feels more like a burglary is Identity Theft. This form of fraud resulted in nearly 800 victims in Nebraska alone in 2004. A whopping 26% of those affected were victims of credit card fraud, where the criminal illegally used their victim's credit and debit cards for unauthorized purchases or to establish other means of identification for themselves.

The perpetrators of fraudulent schemes are not limited to "back-alley" thugs or greedy corporate executives. They can and do exist in virtually all walks of life. Take for example, the minister in Tennessee who was tried and convicted for burning down his own CHURCH in order to collect on the $800,000 insurance policy. Or the respected doctor in Indiana who illegally made thousands of dollars off of Medicaid for excessive and inappropriate billing practices.

What can you do to protect yourself from this crime? First and foremost, use your instincts! If something doesn't pass your "smell" test, then there's a real possibility that not everything is on the up and up….do your homework. Be vigilant. Perform what business calls "due diligence". Conduct background checks. Research investments and firms before giving them your money! If you're considering "online" investing, be alert for:

· Promises of quick profits and pressure to invest before you have the opportunity to investigate.
· Words like "guarantee", "high return", "limited offer" or "as safe as a CD" may be red flags. Remember, there is no such thing as a "risk free" investment!

· Watch out for off-shore scams and investment opportunities in other countries. When you send your money abroad and something goes wrong, it's harder to locate money.

· Conduct due diligence. Make inquiries with the SEC.

To assist you in keeping your private information PRIVATE, these simple actions will help you from becoming a potential victim of Identity Theft:

· Do not give out personal information on the phone, through the mail, or over the internet unless you were the one initiating the contact, or you are absolutely sure of whom you are dealing with. ID thieves have posed as bank representatives, internet service providers and even government agencies.

· Treat your mail and discarded correspondence as Top Secret information! Deposit your outgoing mail in post office collection boxes or at your local post office, rather than in an unsecured home mail box. Promptly remove your incoming mail. If you are going to be away for awhile, call the postal service at 1-800-275-8777 to request a vacation mail hold.

· Shred your charge receipts, credit applications, insurance forms, medical correspondence, checks and bank statements, expired charge cards and ANYTHING ELSE that may have any personal or private information.

· Do not routinely carry your SSN card. Keep it in a secure place.

· Give your SSN only when absolutely necessary. Ask to use other types of identification when possible.

· Carry only the ID and credit/debit cards that you will actually need when you go out.

· Use caution when responding to promotions. ID thieves often create phony promotional offers to get you to give them your personal information.

· When ordering new checks, try to pick them up at your bank instead of having them mailed to you.
For those of you who have taken advantage of the convenience of storing personal files on your home PC, your risk of personal information/identity theft is becoming even greater. Follow these tips to help protect you and your family:

· Install virus protection and ensure that it is updated regularly; at least once a week.

· Do not open files sent to you by strangers, or click on hyperlinks or download programs from people you do not know.

· Use a firewall!

· Use a secure browser - software that encrypts or scrambles information that you send out over the internet.

· Try not to store financial and other personal information on your laptop, unless absolutely necessary. If you do, use a strong password for access to your computer. Stay away from passwords that use your birthday, home address, etc.

· Before you dispose of a computer, delete all information it stored. Use a "wipe" utility program to overwrite the entire drive.

There really is no guarantee that even if you follow all the above measures, that you will never become a victim of fraud. But, you can definitely minimize your risk by adhering to your instincts and remaining diligent. Keep your personal information personal. And if something doesn't smell right, chances are it's not!

If you believe you have become a victim of ID theft, contact your local Police Department or the department where you believe the act occurred. If you suspect that you are a victim of other types of fraud, contact a legal professional and collect all tangible evidence of damages.

Western Nebraska Investigations
US Bank Building
301 N. Bailey Street, Suite 202
North Platte, Nebraska 69101
308-534-9003