Financial Security - Letter of Credit Fraud

In this day and age where the economy is fragile and the majority of us are walking that fine line of credit failure, there are scams out there that can push us over the edge. Be mindful of credit fraud. The FBI has some helpful tips, which are below.

Legitimate letters of credit are never sold or offered as investments.

Legitimate letters of credit are issued by banks to ensure payment for goods shipped in connection with international trade. Payment on a letter of credit generally requires that the paying bank receive documentation certifying that the goods ordered have been shipped and are en route to their intended destination.

Letters of credit frauds are often attempted against banks by providing false documentation to show that goods were shipped when, in fact, no goods or inferior goods were shipped.

Other letter of credit frauds occur when con artists offer a "letter of credit" or "bank guarantee" as an investment wherein the investor is promised huge interest rates on the order of 100 to 300 percent annually. Such investment "opportunities" simply do not exist. (See Prime Bank Notes for additional information.)

Some Tips to Avoid Letter of Credit Fraud:

1) If an "opportunity" appears too good to be true, it probably is.

2) Do not invest in anything unless you understand the deal. Con artists rely on complex transactions and faulty logic to "explain" fraudulent investment schemes.

3) Do not invest or attempt to "purchase" a "Letter of Credit." Such investments simply do not exist.

4) Be wary of any investment that offers the promise of extremely high yields.

5) Independently verify the terms of any investment that you intend to make, including the parties involved and the nature of the investment.

Protect Against Retail Store Fraud

Check Your Receipts Before Leaving Any Cashiers Station.

Make sure everyone in your family understand this retail store fraud technique.

I bought a bunch of stuff, over $150, and I glanced at my receipt as the cashier was handing me the bags. I saw a cash-back of $40. I told her I didn't request a cash back and to delete it.

She said I'd have to take the $40 because she couldn't delete it. I told her to call a supervisor.

Supervisor came & said I'd have to take it! I said NO! Taking the $40 would be a cash advance against my Discover & I wasn't paying interest on a cash advance!!!!! If they couldn't delete it then they would have to delete the whole order.

So the supervisor had the cashier delete the whole order & re-scan everything!

The second time I looked at the electronic pad before I signed & a cash-back of $20 popped up. At that point I told the cashier & she deleted it. The total came out right. The cashier agreed that the electronic pad must be defective. (yeah, right!)

Obviously the cashier knew the electronic pad wasn't defective because she NEVER offered me the $40 at the beginning.

Can you imagine how many people went through before me & at the end of her shift how much money she pocketed?

Just to alert everyone. My coworker went to Milford, DE Wal-Mart last week. She had her items rung up by the cashier. The cashier hurried her along and didn't give her a receipt.

She asked the cashier for a receipt and the cashier was annoyed and gave it to her. My coworker didn't look at her receipt until later that night. The receipt showed that she asked for $20 cash back. SHE DID NOT ASK FOR CASH BACK!

My coworker called Wal-Mart who investigated but could not see the cashier pocket the money. She then called her niece who works for the bank and her niece told her this.

This is a new scam going on. The cashier will key in that you asked for cash back and then hand it to her friend who is the next person in line.

Please, please, please check your receipts right away when using credit or debit cards! This is NOT limited to Wal-Mart, although they are the largest retailer so they have the most incidents.

I am adding to this....My husband and I were in Wal-Mart North Salisbury and paying with a credit card. When my husband went to sign the credit card signer, he just happened to notice there was a $20 cash back added. He told the cashier that he did not ask nor want cash back and she said this machine has been messing up and she canceled it. We really didn't think anything of it until we read this email.

I wonder how many "seniors" have been, or will be, "stung" by this one?? To make matters worse ...THIS SCAM CAN BE DONE ANYWHERE, AT ANY RETAIL OR WHOLESALE LOCATION!!!

BEFORE LEAVING THE CASHIER'S STATION!! CHECK YOUR RECEIPT!!

Child Safety - Car Seats

From a Yahoo! News article - Car Booster Seats to Avoid
by Blake Ellis, Staff Reporter

The good news is that booster seats are getting safer. The bad news is that there are still some seats out there that may not protect your child in a crash, a report released Wednesday showed.

Because seat belts are typically designed for adults, booster seats are meant to lift children so that lap belts fit flat across their upper thighs and shoulder belts hit mid-shoulder, according to the Insurance Institute for Highway Safety.

Out of the 72 boosters evaluated, 21 were recommended as "best bets" because safety belts fit well across most vehicles, while seven models were "good bets" and eight were not recommended. This was the first time top performers outnumbered the worst performers, with only nine boosters rated as "best bets" last year.

The eight models that failed the institute's evaluations were Eddie Bauer's Deluxe and Deluxe 3-in-1, Evenflo's Express, Generation 65 and Sightseer, Safety 1st's All-in-One and Alpha Omega Elite and Harmony's Baby Armor.

Engineers found that these boosters provided poor belt fit, meaning that the lap belt came too high on a child's stomach or the shoulder belt hit too close to a child's neck or fell off the shoulder.

"If the booster isn't doing a good job -- if the lap belt is up on your son or daughter's tummy or if the shoulder belt is falling off your child's shoulder -- then find a replacement booster seat as soon as practical," said Anne McCartt, Institute senior vice president for research.

"Best bets" included Chicco's Keyfit Strada and Graco's TurboBooster Crawford. While one of its boosters failed the test, Harmony Juvenile Products boasts five "best bet" booster seats, more than any other manufacturer.

Among the "good bets" were Combi's Kobuk Air Thru, Britax's Parkway SG and Maxi-Cosi's Rodi.

Booster seat manufacturer Dorel Juvenile Group, which makes Eddie Bauer and Safety 1st seats, pointed out in a company statement that five of its seats were rated "good" or "best bets" by the institute, although four were listed as "not recommended."

"We evaluate and continue to evolve current products to enhance their performance with new technologies and designs that reflect our leadership in child passenger safety," Dorel said in its statement.


The manufacturers of Evenflo and Harmony booster seats did not immediately respond to a request for comment. Both of those manufacturers had seats listed among the "best bets" as well as among the "not recommended" seats.

Thirty-six boosters fell between "not recommended" and "good bets," because the safety belts didn't consistently fit well when they were tested in a variety of vehicles.

"Unlike the top performers, consumers can't assume boosters in the in-between group will work in every family vehicle," said McCartt. "Some may be fine, but parents still need to try them out to see if the lap and shoulder belts fit their kids correctly."

To gauge booster safety, engineers placed a crash test dummy the size of an average 6-year old into each seat and measured the fit of the safety belts. Booster seats are designed for children ages four through eight.

For a full list of booster seats and ratings, visit: http://www.iihs.org/news/rss/pr090810.html