FDIC... What Does That Mean?

OneAccounts are FDIC insured. FDIC stands for Federal Deposit Insurance Corporation. It's an independent agency of the federal government that was created back in 1933 to restore public confidence in the U.S. financial system after thousands of bank failures in the 1920s and early 1930s. Basically, the FDIC insures deposits in banks and other financial institutions for up to $100,000. Since the start of FDIC insurance in January 1934, no depositor has lost a single penny of insured funds as a result of a failure.

In the spring of 2005, the FDIC published "Taking Control of Your Finances: A Special Guide For Young Adults." You can find it (and download it for free) here.

The guide covers subjects specifically designed for young adults in college with subjects including: How to protect yourself from fraud and theft and things you should know about checking accounts, debit cards, and online banking including paying your bills online.

What is "Phishing"?

"Phishing" is a type of fraud. Phishing schemes are designed to trick a person into giving out their confidential information, which is then used for identity theft and credit/debit fraud.

The most common form of phishing is sending emails to a user falsely claiming to be a reputable business, with the intent to scam the user into providing their private information. For example, a scammer acting as if they are emailing from a bank might try to trick a user into revealing private information such as social security numbers, account numbers, passwords, etc.

Email phishing schemes frequently change and often include links and/or attachments. Clicking on the links and attachments often navigates to a look-alike website asking you to enter personal information. Never enter your personal Easy Refund Card and account information into any website other than your program website. (Note: When you enter EasyRefundCard.com or www.EasyRefundCard.com into your browser’s address bar, it will automatically be re-routed to a secure site and will include .higheroneaccount.com at the end of the URL.)

Fraudulent emails can be made to look convincingly like the types of emails Higher One sends for reminders of OneAccount Online Statement availability, information on new promotions, etc. Be aware, and avoid being fooled.

Higher One takes phishing seriously. For your security, Higher One will never:

• Send email asking you to enter personal information directly into the email.
• Send email asking you to reply by email providing your personal information.
• Send email asking you to enter your website login, password or account number into an email or other non-secure webpage.

Safe Use of the Internet

Shopping on the Internet has become commonplace. While most Internet sales are safe, there are still many incidents of fraudulent Internet sales that take place. Higher One advises that you take the following precautions when shopping on the Internet:

• Try to do business only with reputable companies you know and trust. Trustworthy companies generally publish a physical address and phone number on their website. Contact the company for additional information.

• Avoid shopping on websites that do not offer secure online ordering. When asked to provide your credit/debit card information, verify that the website page you're viewing is using a secure server. If the URL (i.e., web address) in the browser window starts with https://, then the website is using a secure server.

• Common information requested for credit/debit card purchases includes the card number, expiration date, the name on the card, and sometimes the security code (located on the back of the card). Never provide your Personal Identification Number (PIN) or other account information.

• Always read the privacy policy posted on a website where you intend to enter your credit/debit card information. Avoid doing business with any company that does not publish their privacy policy.

It's Your Identity! Protect Yourself!

"Identity theft is something that happens to other people, not to me." Well, if you have a social security number, it can happen to you! According to the Federal Trade Commission, there have been nearly 10 million identity theft incidents reported within the last five years.

Identity theft takes place when one person impersonates another by using the person's personal information. Personal identifying information that can be used to facilitate identity theft includes:

• Name
• Social Security Number
• Birth Date
• Physical Address
• Bank Account Information
• Credit/Debit Card Information
• Mother's Maiden Name

In the name of the victim, a person engaging in identity theft may open credit card accounts, obtain loans and mortgages, use utilities (such as cable, power, and cell phones) and perform many other financial-based transactions.

It is important to know how to protect yourself from identity theft and take all reasonable precautions to ensure you don't become a victim. Following the guidelines below can help you reduce your risk of identity theft.

• Do not leave receipts at ATMs, store checkouts, bank counters and gasoline pumps. Persons engaging in identity theft can obtain information from your receipts.

• Memorize your credit/debit card ATM Personal Identification Numbers (PIN). Never write your PIN on the back of your credit/debit cards or anything else you carry. Use a PIN that only you will know. Do not use a PIN based on information about yourself that is easy to obtain, such as your date of birth.

• Avoid carrying such items as your social security card in your wallet. Keep printed items with personal information in a safe place at home.

• Whenever you receive a new credit or debit card, be sure to sign it immediately. Never loan your credit card information or physical credit card to anyone. Always report a lost/stolen card immediately.

• Notify your bank and other financial associations whenever you change your address or phone number.

• When your mail is delivered, empty your mailbox as soon as possible. Do not authorize shipping companies to leave packages that aren't signed for.

• When sending mail, never write your account number on the outside of an envelope. Do not mail bill payments or other items containing checks from home. They can be stolen from your mailbox. It is safest to deposit all mail in U.S. Postal Service collection boxes or at your local post office. Avoid depositing outgoing mail in any box that non-U.S. Postal Service employees can handle.

• Before you throw items in the trash, shred all documents that contain your personal information. Shred all bank and credit/debit card statements. Don't just toss your "junk mail" in the trash. Destroy all credit card offers and any other junk mail including your name and address.

• Reduce the amount of "junk mail" you receive. Remove your name from the marketing lists of the three credit reporting agencies and also add your name to the deletion lists of the Direct Marketing Association's Mail Preference Service and Telephone Preference Service. Taking these steps will dramatically reduce the number of pre-approved credit offers and other mass-marketing materials sent to you. To find out more about how to exclude your name from credit reporting agency lists call 1-888-5OPTOUT (1-888-567-8688). To find out more about how to remove your name from marketing lists, visit the Direct Marketing Association website.

• Protect your social security earnings by ordering a copy of your Social Security Earnings and Benefits statement at least once a year to check for fraud. Visit the Social Security website for more information.

• When your credit/debit card statements arrive (whether online or by mail), carefully examine the charges carefully. This is often the first place unauthorized activities show up.

Here are helpful links to resources on the Internet that can provide you with more information and help you protect yourself from identity theft.

Federal Trade Commission
Identity Theft Resource Center
Better Business Bureau
Call for Action
National Consumers' League (National Fraud Information Center)

Dealing with Identity Theft

If you believe that you've become a victim of identity theft, it's important that you take immediate action.

• Contact the three major credit agencies and report that you suspect that your identity has been stolen. Order copies of your credit report from all three agencies. Review your reports to check for any additional accounts that have been fraudulently opened in your name. Check for any other unauthorized changes that have been made to your existing accounts.

• Contact your credit/debit card companies, banks, utilities, and all other pertinent companies both by phone and in writing. Keep detailed records of all of your conversations and correspondence.

• File a police report with your local police department. Obtain a copy of the police report. Having a copy of the report will help you when dealing with companies.

• Contact the Federal Trade Commission (FTC) at the information provided below. The FTC provides information to victims of identity theft that assists in resolving the problems that can result from identity theft.

Identity Theft Clearinghouse
Federal Trade Commission
600 Pennsylvania Avenue NW
Washington, DC 20580
Toll-free 1-877-IDTHEFT (438-4338)
TTY: 1-866-653-4261

Protect Yourself From Credit/Debit Card Fraud

Stolen cards are generally used within 48 hours. If you've lost your card, contact Higher One immediately and report the card lost/stolen.

To report your Higher OneCard lost/stolen, log in to your program website at www.EasyRefundCard.com and select "Profile," then "Card Status" from the main menu bar. The "Card Status" page will provide you with the steps to report your card lost/stolen. Or, call Higher One 24-hours a day toll-free at 1-877-327-9515.

With MasterCard's Zero Liability Policy, you are not liable in the event of an unauthorized use of your Higher One Debit MasterCard®. If your card is used before you report it lost/stolen, you may be responsible for a portion of the loss.

Keep Your Credit Safe

Monitor your credit report. Carefully watch for inaccurate information and account openings you know you didn't authorize. Your credit report contains important information such as your social security number, your employment history, your account numbers (both opened and closed), loan information, and more.

The Fair and Accurate Credit Transactions (FACT) Act entitles you to receive a free report from each of the three major credit bureaus every year. The FACT Act requires that by September 1, 2005, residents of every U.S. state be able to request an annual copy of their credit report from each of the three major credit agencies for free. The three major credit reporting agencies are:

Equifax
Experian (Formerly TWR)
TransUnion

For more information on when a free credit report becomes available in your state, or to request your free credit reports, go to the Annual Credit Report Request Service website. You can also call 1-877-322-8228 or mail a request to:

Annual Credit Report Request Service
P.O. Box 105283
Atlanta, GA 30348-5281

For more information on the Fair and Accurate Credit Transactions (FACT) Act, visit the Federal Trade Commission website.