Wisconsin consumers need to be prepared for the possibility of a phone scam targeting cell phone users, warns the Wisconsin Bankers Association (WBA). Reports are filtering in that some consumers are receiving telephone calls from criminals claiming to be a bank and that the customer’s accounts have been compromised.

Consumers are reporting they have received a recorded phone message on their cell phones that starts out with “Bank.” It does not state any specific bank. The recorded message then states that the customer’s account has been compromised and to please press “one” to be connected with the security department. The person is then asked to input their debit card number.

Telephone phishing scams can be extremely convincing as many people are still unaware of this method of fraud. An educated, cautious consumer is the number one defense against any scam. When consumers receive phone calls or e-mails from agencies claiming to be a financial institution and requesting verification of their personal information, consumers should protect themselves by following these steps:

•     Stop. Do not respond immediately.
  
•     Think. Why would my bank need this information?
  
•     Call. The number on your bank statement or in the phone book.

“No bank or legitimate business will request a customer to verify personal information such as PINs, bank account numbers or Social Security numbers over the phone,” explained Kurt Bauer, WBA’s president/CEO. “Unless you initiate the contact, you should never give this information out.”

Personal information that you should never release in a conversation not initiated by you includes:

•      Bank Account Numbers
•      Bank Card Numbers - Credit or Debit
•      Personal Identification Numbers (PINs)
•      Social Security Numbers

If a person receives this type of request over the phone, WBA suggests they should note the name of the caller, the institution represented and contact information. The consumer should then contact said institution, using contact information gleaned from a different source like a bank statement, to verify the request.

If the request was not legitimate, the incident should be reported to the police, the misrepresented institution and, if you mistakenly offered your personal information, your own financial institution. The same guidelines and suggestions apply to e-mail requests for personal information.

“Criminals are constantly inventing new techniques or variations on old ones to steal personal information,” Bauer said. “If a consumer is ever in doubt about a request, they should immediately contact the police or their financial institution. Both agencies are well equipped to determine the legitimacy of the request and will be happy to offer assistance.”

WHEDA is proud to offer first time homebuyers in Wisconsin low, fixed-rate mortgage products as well as access to homebuyer education and other resources. The WHEDA Advantage is specifically designed to help you realize the dream of home ownership.

For over 35 years, we’ve been helping people just like you purchase a home of their own. From unique down payment options to job loss mortgage payment protection, to educational resources and more, WHEDA offers you affordable mortgage options and everything else you need to make smart financial choices and realize your dream of home ownership.

New Federal Reserve rules give debit and ATM card users additional options regarding overdrafts. In the coming months, banks, credit unions and other financial institutions must offer you the ability to make decisions about overdraft services for transactions made with your debit or ATM cards.

The Basic Facts
Types of overdraft services. An overdraft occurs when you make a purchase or ATM transaction but don’t have enough money in your account to pay for it. For a fee, you bank’s overdraft services will cover you when you become overdrawn. This fee can apply to each time you overdraw your account.

 Generally, there are two types of overdraft services:

• Standard overdraft services. Your bank will cover your transaction for a flat fee of $30 each time you overdraw your account. For example, if you make a purchase with your debit card for $150 but only have $100 in your account, your account will be overdrawn by $50 and your bank will charge you a fee. If you then make an ATM withdrawal for $50, your account will be overdrawn by $100 and you will be charged another fee. In this example, if the fee your bank charges for overdraft services is $30, you will pay a total of $60 in fees.  

• Overdraft protection plans. Your bank may offer a line of credit or a link to your savings account to cover transactions when you overdraw your account. Banks typically charge a fee each time you overdraw your account, but overdraft protection plans may be less expensive than standard overdraft services.

The New Rules 
• You choose. In the past, some banks automatically enrolled you in their standard overdraft services for all types of transactions when you opened an account. Under the new rules, your bank must first get your permission to apply these services to everyday debit card and ATM transactions before you can be charged overdraft fees. To grant this permission, you will need to respond to the notice and opt in (agree).

• Existing accounts. If you do not opt in (agree), beginning August 1, 2010, your bank’s standard overdraft services won’t apply to your everyday debit card and ATM transactions. These transactions typically will be declined at the point-of-sale when you don’t have enough money in your account.

• New accounts. If you open a new account on or after July 1, 2010, your bank cannot charge you overdraft fees for everyday debit card and ATM transactions unless you opt in. If you open a new account before July 1, 2010, your bank will treat you as an existing account holder: you will receive a notice about your bank’s overdraft services and will have to decide if you want them for everyday debit card and ATM transactions.  

• Flexibility. Whatever your decision, the new overdraft rules give you flexibility. If you opt in, you can cancel at any time. If you do not opt in, you can do so later.

• Checks and automatic bill payments. The new rules do not cover checks or automatic bill payments that you may have set up for paying bills such as your mortgage, rent, or utilities. Your bank may still automatically enroll you in their standard overdraft services for these types of transactions. If you do not want your bank’s standard overdraft services in these instances, talk to your bank; you may or may not have the option to cancel.

The best way to avoid overdraft and bounced-check fees is to manage your account so you don’t overdraw it.

•  Keep track of how much money you have in your checking account by keeping your account register up-to-date. Record all checks when you write them and other transactions when you make them. And don’t forget to subtract any fees.
  
•  Pay special attention to your electronic transactions. Record your ATM withdrawals and fees, debit card purchases, and online payments.
  
•  Don’t forget about automatic bill payments you may have set up for utilities, insurance, or loan payments.
  
•  Keep an eye on your account balance. Remember that some checks and automatic payments may not have cleared yet.
  
•  Review your account statements each month. Between statements, you can find out which payments have cleared and check your balance by calling your bank or by checking online or at an ATM. Be sure to find out the actual amount in your account--your account balance not including any funds available to you through "courtesy overdraft-protection," or "bounce coverage," plans.

Sometimes mistakes happen. If you do overdraw your account, deposit money into the account as soon as possible to cover the overdraft amount plus any fees and daily charges from your bank. Depositing money into your account can help you avoid additional overdrafts and fees.

Banks, savings and loans, and credit unions may provide other ways of covering overdrafts that may be less expensive. Ask your bank about these options before making your choice. You may be able to:

•  Link your checking account to a savings account you have with the bank. If you overdraw your checking account, the bank can transfer funds from your savings account to your checking account. Ask your bank about transfer fees.
  
•  Set up an overdraft line of credit with the bank. You need to apply for a "line of credit" just as you would apply for a regular loan. If you overdraw your account, the bank will lend you the funds by using your line of credit to cover the overdraft. You will pay interest on this loan, and there may be an annual fee. But the overall costs may be less than the costs for courtesy overdraft-protection plans.
  
•  Link your account to a credit card you have with the bank. If you link your account to a credit card, any overdraft amount becomes a cash advance on your credit card. You will probably be charged a cash-advance fee, and interest charges on the advance will start immediately. The cost of this option depends on the interest rate on your credit card and how long you take to pay back the advance.