On Take it to the Bank,
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you'll find ways
to get out of debt.
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Solve your credit card problems.
00:00:09.50\00:00:12.04
How to make and
stick with the budget?
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Simple ways to save.
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Buying or selling a home
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and many more financial
matters on Take it to the Bank.
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Hi, My name is Cordell Thomas
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and this is Take It to the Bank.
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We're gonna talk
today a little about
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the introduction
to critical thinking.
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It's a...
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we have changed
our lecture series
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to the point that
we have changed it
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from calling it
financial literacy
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to the concept of
thinking critically.
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We got to
critical think on money
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and people tend to gravitate
to that a little bit more.
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We ask people this question
in some of our lectures,
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"Would you open up a bald, a
barber shop for bald people?"
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Would you do that? I don't know.
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Based on the economy,
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based on people's
need to shave their heads,
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there are a couple of
things you should look at.
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But when you think
about it critically,
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do bald people need a barber?
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And when you ask
that simple question,
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your answer typically comes
out to what it needs to be.
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And the same thing comes out
to any type of money question
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that comes your way.
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We have...
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are being inundated by
so many different emails,
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voice mails, tweets.
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We got people hitting
us via social networks.
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We got things hitting us
in so many different ways
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and still our physical
mail box is full of stuff
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and we can't
tend to get rid of it.
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But there are
different tools that you can use
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to get rid of
people giving you calls
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when you don't want them too.
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They call you
typically at dinner time,
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because they know you are home.
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Or sending you
mail in your mail box
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that you don't
necessarily have...
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necessarily need.
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And then we think about
what it is to be a consumer.
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And there are several things
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I'd like to chat
with you about today
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as we look about thinking...
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at the issue of
thinking critically.
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Okay, so I asked the question,
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"Would you open up a
barber shop for bald people?"
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I'm not criticizing the
bald people in the world
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because technically, I
have bald parts in my head.
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And I got to keep
my hair cut short.
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That's just a
little insight for you.
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But if you look at the
question that I'm asking
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about a barber shop
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for individuals
that don't need haircuts,
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the critical
think falls into place
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and you ask the
question, "Why would I?"
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So let me ask other
questions about how we consume.
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Did you know, out
there in... on YouTube,
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there are several
videos that you can look up
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about the consumer mentality.
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Now, when we talk
about a consumer mentality,
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what are we talking about?
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It's quite simple
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when you take a look at
what consumerism is all about.
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Consumerism basically
tells us that you and I
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have been conditioned to be
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individuals that
like to buy things.
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Since 1984, we have
seen our personal savings
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drop significantly even
down to a negative savings rate,
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which means we're
spending more than we make.
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One of the simple
things that we hear about
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from the wealthy is that
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they always spend less
than what they bring in.
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And that's when
the major concepts
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I'd like you to think about
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when we're looking
at critical thinking.
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How are we able to
spend less than we bring in.
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In our lecture
series, we talk to people
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about the necessity of a budget.
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And we actually go through
a class in developing a budget
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and the budget you
can find on our website.
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It's a free download.
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And it gives you pretty much
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every different
element that goes into a budget
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but the critical issue here is,
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if you make a
certain amount of money,
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how are you going to monitor
the outflow of those funds
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and make sure that you
have funds to go into savings,
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funds to go into investments?
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Because if you
don't have a budget,
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you're typically
spending what you make.
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And the example is given
time after time, after time
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as we go through
a specific budget
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with the
individuals we're talking to.
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And every single time,
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I actually push the individuals,
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"I say, look,
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how much do you want to
make on a monthly basis?"
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The last time we did
this they said let's...
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"We make $6,000 every month."
"Okay, we make $6,000 a month."
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"Great. Do you have
any part-time income?"
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"Oh, no, we don't need it
because $6,000 is enough."
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I said, "Why don't I
just throw in an extra $1,000
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of part-time income for
you, that you just make 7000.
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It's not major issue.
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It means that you'll just
have an extra $1,000 to save."
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Do you know that,
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every single time
you go through mortgage
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and go through household needs
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and go through
groceries and go through gas
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and go through
every specific element
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that can go on a budget sheet.
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At the end of that budget sheet,
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we have individuals that
are spending $7,500 a month.
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And they're in the
negative, in the red.
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It's interesting.
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You laugh at it sometimes
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because you come
down to the bottom
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and you know
what's going to happen,
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they're in the red.
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Many different things
come to play as you look
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at the decisions people make
about their personal finances.
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For example,
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some individuals have
extra, high-speed bandwidth
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that they have
coming in their house.
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So they feel they need to have
a voice-over IP-type of system
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to answer phone calls.
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Because they actually have it,
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they're paying a
little extra for it.
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It's not a big deal.
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And then, they also
have their cell phone,
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which also brings
in phone calls to them.
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And all of them seem
to have a landline also.
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So you have three
different resources
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that give you
telecommunications access.
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Do you really need
all of that access?
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Additionally,
take a look at the fact
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that you as an
individual have Internet now.
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So you have people
sending you emails.
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They are sending you tweets.
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They are sending you
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connections
through social networks.
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All of these have access to you,
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so you can
communicate via that way also.
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You have individuals who
are spending money on groceries.
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We ask the question, how
much you spend on groceries?
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A lot of people don't know
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how much money
goes out on groceries.
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When we asked a
young lady that question
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in one of our programs,
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she said, "Oh, I
think we spend $75 a month."
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The mom in the back of the room,
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she says, "Oh, no, we don't.
We spend about $750 a month."
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I can tell you by that number,
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750, how many people are
pretty much in that family.
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It was about five.
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I said, "You have five or
six people in your family."
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She says, "You're right.
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And we spend about $750
just on groceries alone."
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And you get down to gas.
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Nobody knows how
much you spend on gas.
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Do you know what you bring in
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to how much you put into
your gas tanks in your cars
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on a monthly basis?
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People didn't know that.
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And you had to
ask them to go home
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and track their spending
and come back with a number.
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And typically that number
is between $250 to $400 a month
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spend on a monthly basis on gas.
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People are saying that,
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"Oh, yes, we have a
newspaper that comes in."
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Well, why do you
need the newspaper
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when you have access to
online news information?
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And that's one of the
critical things you think about.
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Do you need to
pay for both of those?
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Or do you need one
source for your information?
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And you go to things
like, care for your pets
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and electricity, water bill.
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It's another big issue
that people are not aware of.
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Water, sewage, and
those types of elements
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are a part of a
package that people don't know.
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"I don't know, I think I
spend $100 dollars. I spend 75."
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I know exactly how much
money I spend on water and gas,
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and water and sewage each month.
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It comes to $110 a month.
00:08:01.61\00:08:03.85
And I can save if I
don't sprinkle the lawns
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as frequently as I need to.
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But these are things
that people don't know.
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And they typically
have this mindset that
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they've been told that it
took 33 to 35 percent rule
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of how much money
you should be spending
00:08:17.86\00:08:19.79
on your mortgage or
rent based on your income.
00:08:19.83\00:08:23.47
So people automatically assume
would be $7,000 now an income.
00:08:23.50\00:08:27.77
I can spend $2,500 to $3,000
a month on mortgage or rent.
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Is that really the way
you should approach it?
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Many people who get
increases in pay from their work
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typically think
they need to improve
00:08:41.15\00:08:43.12
their living
settings or buy a new car.
00:08:43.15\00:08:47.22
It's just this innate mindset
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that we've been
told by the media
00:08:49.76\00:08:51.53
that we need to be consumers.
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Because since they
have been able to come at us
00:08:53.56\00:08:57.57
in every different way,
00:08:57.60\00:08:58.93
we have capitulated and
said, "Okay, no problem.
00:08:58.97\00:09:02.00
I am going to be
that individuals that buy,
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that individual
that buys things."
00:09:04.51\00:09:06.21
They have
targeted the middle class
00:09:06.24\00:09:08.31
because they know
00:09:08.34\00:09:09.68
that when we talk
about a tax incentive
00:09:09.71\00:09:11.51
or giving you a tax
break at, at tax time,
00:09:11.55\00:09:15.48
you get an extra
$2,000 or $2,500.
00:09:15.52\00:09:18.62
"Wonderful. They're
giving me some money back.
00:09:18.65\00:09:20.82
They're finally
taking, taking care
00:09:20.86\00:09:23.09
of we as a hardworking
middle class Americans."
00:09:23.12\00:09:26.46
Do you know why
they give you the $2,500?
00:09:26.49\00:09:29.63
Because they know
00:09:29.66\00:09:31.27
you are going
to spur the economy
00:09:31.30\00:09:32.80
by spending every penny.
00:09:32.83\00:09:34.74
They know that so
they give you that money
00:09:34.77\00:09:37.47
to go out and buy
00:09:37.51\00:09:39.11
the next best
item at your retailer,
00:09:39.14\00:09:41.31
the next best car,
the next best thing.
00:09:41.34\00:09:44.28
And these are things
that we need to be aware of
00:09:44.31\00:09:46.11
that we cannot
physically get into this...
00:09:46.15\00:09:50.29
consumerist mindset
00:09:50.32\00:09:51.75
because we're...they're
not doing anything for us.
00:09:51.79\00:09:54.42
Every time we buy something,
00:09:54.46\00:09:55.79
they get more
information about us.
00:09:55.82\00:09:57.16
Every time we buy something,
00:09:57.19\00:09:58.53
we help spur the
economy and guess what?
00:09:58.56\00:10:00.13
We're still paying
the same amount in taxes.
00:10:00.16\00:10:02.93
So there are many things
that you should be aware of,
00:10:02.96\00:10:05.10
that they're not out there
looking to take care of you.
00:10:05.13\00:10:09.30
They're looking,
to get money from you
00:10:09.34\00:10:12.07
because that's
what business is about.
00:10:12.11\00:10:15.71
I was sitting in a
meeting with some young people
00:10:15.74\00:10:18.65
who had just gotten summer jobs.
00:10:18.68\00:10:21.08
It was at the beginning
of the summer back in June.
00:10:21.12\00:10:24.75
And we had
00:10:24.79\00:10:26.35
about 50 young
people sitting in the room
00:10:26.39\00:10:28.86
and it was quite interesting.
00:10:28.89\00:10:30.36
I was following the
presentation with the bank.
00:10:30.39\00:10:33.06
The bank came in and
made this comment to the kids.
00:10:33.09\00:10:37.57
"Hey guys,
00:10:37.60\00:10:38.93
we have a limited
offer for each one of you.
00:10:38.97\00:10:41.80
We're offering each
one of you young people,
00:10:41.84\00:10:44.14
as long as you sign
up for direct deposit,
00:10:44.17\00:10:48.28
we're gonna give you a
free checking account."
00:10:48.31\00:10:51.95
Oh, the kids loved it.
It was signed right up.
00:10:51.98\00:10:54.62
And now they're depositing
00:10:54.65\00:10:55.98
all of their
cash into that bank.
00:10:56.02\00:10:58.89
And the banker says,
"Thank you very much."
00:10:58.92\00:11:01.22
Signs them up and leaves.
00:11:01.26\00:11:02.86
My first comment to the
kids was, "A bank is a business.
00:11:02.89\00:11:08.46
A business is in
business to make money."
00:11:08.50\00:11:12.57
You're getting a
free checking account,
00:11:12.60\00:11:15.27
but is it really free?
00:11:15.30\00:11:17.71
Because once you don't monitor
your account as you should
00:11:17.74\00:11:22.68
and you bounce a
check or overspend
00:11:22.71\00:11:25.35
or swipe your debit card.
00:11:25.38\00:11:28.08
And you don't have
enough funds in there,
00:11:28.12\00:11:30.02
do you know what happens?
00:11:30.05\00:11:31.65
Because of course,
00:11:31.69\00:11:33.02
you'd expect that if you don't
have any money in your account,
00:11:33.05\00:11:35.76
and you swipe your debit card,
00:11:35.79\00:11:38.19
you're not going to
have any transaction.
00:11:38.23\00:11:40.33
It'll deny your transaction.
And you can set it up that way.
00:11:40.36\00:11:43.20
But typically, the
bank will set it up in a way
00:11:43.23\00:11:45.43
that it will still pay for it
00:11:45.47\00:11:48.37
and charge you an
insufficient funds fee.
00:11:48.40\00:11:51.97
They are going to make
money one way or the other.
00:11:52.01\00:11:55.24
And you know what the fees are
for insufficient funds today?
00:11:55.28\00:11:59.41
In many areas, it's about $35.
00:11:59.45\00:12:02.08
And there in
00:12:02.12\00:12:03.45
is a key to understanding
how the systems work.
00:12:03.49\00:12:05.65
But it's not only
just the fact that
00:12:05.69\00:12:07.49
if you don't monitor
your account in the right way,
00:12:07.52\00:12:09.62
it comes back to a simple issue.
00:12:09.66\00:12:12.56
That issue has to
do with your money.
00:12:12.59\00:12:15.06
The bank is going to
give you a simple interest fee
00:12:15.10\00:12:16.83
on your money in
your checking account.
00:12:16.87\00:12:18.37
Give one or two percent.
00:12:18.40\00:12:19.73
You feel comfortable,
'cause it's your money
00:12:19.77\00:12:21.50
is in a safe environment.
00:12:21.54\00:12:23.10
That's a good thing.
00:12:23.14\00:12:24.64
But do you know
that they take your money
00:12:24.67\00:12:27.84
and reinvest your money?
00:12:27.88\00:12:29.84
They leverage the cash
that you put in the account
00:12:29.88\00:12:31.91
and reinvest it.
00:12:31.95\00:12:33.28
And they get a
return rate of between 20...
00:12:33.31\00:12:36.18
can be between 20 and 25 percent
00:12:36.22\00:12:39.05
on the money you've put in.
00:12:39.09\00:12:40.42
So yes, they want you to
put money into their accounts.
00:12:40.46\00:12:42.49
Yes, it is a safe environment
to have your money in
00:12:42.52\00:12:46.59
but if you don't
understand the environment,
00:12:46.63\00:12:49.56
you can have a
major ordeal to deal
00:12:49.60\00:12:52.87
with when you
bounce a variety of checks,
00:12:52.90\00:12:54.54
you don't have sufficient funds,
00:12:54.57\00:12:55.90
and they charge you 35, 50, 70,
00:12:55.94\00:12:58.81
how many hundreds of dollars
that could be charged you
00:12:58.84\00:13:01.74
for not having the correct funds
00:13:01.78\00:13:04.48
in your account.
00:13:04.51\00:13:06.25
These are significant issues,
about how we need to begin
00:13:06.28\00:13:09.82
thinking
critically about what we do.
00:13:09.85\00:13:13.46
And beyond that,
your money is, is,
00:13:13.49\00:13:17.63
is something that is a draw
for other type of individuals.
00:13:17.66\00:13:22.73
And I will show you
something right now in a video
00:13:22.76\00:13:25.33
that I think will be
quite interesting to you.
00:13:25.37\00:13:27.67
It is one of our
lottery scam videos
00:13:27.70\00:13:30.81
that we have approval to
use for educational purposes.
00:13:30.84\00:13:33.81
And we'll take
you there right now.
00:13:33.84\00:13:36.41
Coming.
00:13:36.44\00:13:37.81
Good afternoon, Mr. Thomas.
00:13:37.85\00:13:39.68
I'm from your
credit card company.
00:13:39.71\00:13:41.62
We suspect several unauthorized
transactions on your card.
00:13:41.65\00:13:44.72
Really? My credit card company?
00:13:44.75\00:13:46.49
Yes. And we care
about your security.
00:13:46.52\00:13:48.69
So, we make house calls.
00:13:48.72\00:13:50.46
Good news is you give me
your social security number
00:13:50.49\00:13:53.26
and we'll take care of you.
00:13:53.29\00:13:54.63
Is that all you need?
00:13:54.66\00:13:56.20
Not quite. We also
need your pin number.
00:13:56.23\00:13:58.70
I forgot.
00:13:58.73\00:14:00.24
What's that on your back?
00:14:00.27\00:14:02.04
Nothing.
00:14:02.07\00:14:03.41
Oh, I get it.
00:14:03.44\00:14:04.77
You're phishing for
my personal information,
00:14:04.81\00:14:06.51
right?
00:14:06.54\00:14:07.88
No.
00:14:07.91\00:14:09.24
So you can steal
my identity, right?
00:14:09.28\00:14:10.61
No.
00:14:10.65\00:14:11.98
Then how come you have a
fin sticking out of your back?
00:14:12.01\00:14:13.35
Honey, get my
tackle box and rod.
00:14:15.85\00:14:18.35
OnGuardOnline.gov
00:14:20.26\00:14:21.99
has tips to help you
guard against Internet fraud
00:14:22.02\00:14:24.33
to secure your computer
00:14:24.36\00:14:25.69
and protect your
personal information.
00:14:25.73\00:14:28.66
To be more secure online,
log on to OnguardOnline.gov.
00:14:28.70\00:14:33.23
Stop. Think. Click.
00:14:33.27\00:14:35.27
Phishing. P-H-I-S-H-I-N-G.
00:14:39.11\00:14:43.95
Takes off of the word "fishing"
00:14:43.98\00:14:45.85
when you
actually go out on a boat
00:14:45.88\00:14:47.52
and you through out a rod.
00:14:47.55\00:14:48.88
That's actually what's happening
00:14:48.92\00:14:50.45
and that's how they refer
to it as phishing where...
00:14:50.49\00:14:53.62
and someone will send you
some information to your inbox
00:14:53.66\00:14:57.53
and ask you for
personal information.
00:14:57.56\00:14:59.83
Now it gets...it's not
just as simple as that.
00:14:59.86\00:15:02.66
Because what they're doing
00:15:02.70\00:15:04.43
is they have a
link in the website
00:15:04.47\00:15:07.37
that leads you back to
a site, your banker site.
00:15:07.40\00:15:10.51
Well, it's not
really your bank site,
00:15:10.54\00:15:11.87
it's just a replicated
site of your bank site
00:15:11.91\00:15:14.04
that looks just like
00:15:14.08\00:15:15.54
whatever bank
your banker you're at.
00:15:15.58\00:15:17.71
And so now, how...
I ask the question,
00:15:17.75\00:15:20.38
"How did they know
what bank you utilize
00:15:20.42\00:15:23.05
to save your money
or put your money in,
00:15:23.08\00:15:25.95
so much so that they can
replicate your bank's website
00:15:25.99\00:15:29.92
for the sole purpose of
you going to the website
00:15:29.96\00:15:32.09
and putting in
personal information?
00:15:32.13\00:15:33.80
Number one
00:15:33.83\00:15:35.80
your banker has
certain tools in place
00:15:35.83\00:15:39.37
where they never have to ask you
00:15:39.40\00:15:41.54
for personal information
00:15:41.57\00:15:42.90
when they send it
to you via internet.
00:15:42.94\00:15:45.34
Typically they
have your information
00:15:45.37\00:15:46.88
and they just give you updates
00:15:46.91\00:15:48.24
and ask you to call in
or go to the website of,
00:15:48.28\00:15:52.61
of whichever bank you use
00:15:52.65\00:15:54.12
and check and or
update your information.
00:15:54.15\00:15:57.32
But you should never be
asked for personal information.
00:15:57.35\00:16:02.62
Who's a target, target
demographic of all of this?
00:16:02.66\00:16:05.43
Well, they are
targeting people who are...
00:16:05.46\00:16:08.26
make between $40,000
to $45,000 a year or less.
00:16:08.30\00:16:11.73
And they're typically I think,
minorities or individuals,
00:16:11.77\00:16:14.54
that they have been
able to find information on
00:16:14.57\00:16:17.21
through the database.
00:16:17.24\00:16:18.57
Now, what is a database?
00:16:18.61\00:16:20.08
What does a database have in it?
00:16:20.11\00:16:22.44
It's quite
interesting when you take a look
00:16:22.48\00:16:24.58
at some of that information
that is in a database.
00:16:24.61\00:16:27.02
For example,
00:16:27.05\00:16:28.38
types of information
that's generally available
00:16:28.42\00:16:30.75
to the general public
00:16:30.79\00:16:32.12
or information such as
demographic information
00:16:32.15\00:16:34.32
that's typically
taken via the census.
00:16:34.36\00:16:37.13
Information such are in
the telephone directories,
00:16:37.16\00:16:39.93
phone numbers of your business
or your or your residence,
00:16:39.96\00:16:43.16
birth,
marriage, divorce records,
00:16:43.20\00:16:45.70
voter registration information
00:16:45.73\00:16:47.40
and as well as
campaign contributions.
00:16:47.44\00:16:49.80
Driver's license information,
00:16:49.84\00:16:51.71
licensing and permit information
00:16:51.74\00:16:54.18
and legal information
such as judgments bankruptcies
00:16:54.21\00:16:56.91
as well as real
estate titles and the like.
00:16:56.95\00:16:59.58
Now, private databases
available to only those
00:16:59.61\00:17:03.39
that need that information
and for legitimate purposes.
00:17:03.42\00:17:07.22
These private databases
and have in, in, in them,
00:17:07.26\00:17:11.09
employment
information, credit reports,
00:17:11.13\00:17:14.80
tax
information, criminal records
00:17:14.83\00:17:16.90
as well as
social service records,
00:17:16.93\00:17:18.80
school records and
others like medical records.
00:17:18.83\00:17:22.00
People aren't aware that
this information is out there
00:17:22.04\00:17:24.84
and if it's hacked
into then, of course,
00:17:24.87\00:17:27.94
your information is
now available to many.
00:17:27.98\00:17:31.11
So we ask the question,
00:17:31.15\00:17:32.48
how do they get
this information?
00:17:32.51\00:17:34.28
Well, as asked,
00:17:34.32\00:17:36.08
what's information of you is
in a typical database profile?
00:17:36.12\00:17:40.86
Did you know that your
address, your phone fax numbers,
00:17:40.89\00:17:45.06
your social security number,
your credit card numbers,
00:17:45.09\00:17:48.13
your driver's license number,
your bank account information,
00:17:48.16\00:17:51.50
your student loan history,
00:17:51.53\00:17:53.07
information such as
medical, driving records,
00:17:53.10\00:17:55.77
workers'
compensation, tax records,
00:17:55.80\00:17:57.81
political
affiliations, spending patterns
00:17:57.84\00:18:01.34
and of course, estimated income.
00:18:01.38\00:18:04.25
All of that information is
available in these databases
00:18:04.28\00:18:09.08
and they are out there
00:18:09.12\00:18:10.95
and once hacked into
can create a lot of problems
00:18:10.99\00:18:14.86
if they get to your
access to your information.
00:18:14.89\00:18:17.16
So it is very, very important
00:18:17.19\00:18:21.83
that you do the right thing
in protecting your information,
00:18:21.86\00:18:25.57
protecting the
credibility of your information
00:18:25.60\00:18:28.20
and making sure
that you have passwords
00:18:28.24\00:18:30.71
that are not easy to figure
out for those that are out there
00:18:30.74\00:18:34.88
looking for that
type of information.
00:18:34.91\00:18:38.61
Now there are many
things that you can do
00:18:38.65\00:18:41.45
if you're interested
in protecting yourself
00:18:41.48\00:18:43.42
from all of these individuals
00:18:43.45\00:18:44.85
who are looking to
get information about you
00:18:44.89\00:18:47.12
and then target you
as a potential victim.
00:18:47.16\00:18:49.32
One of those things you can
do is use the Opt-out Services
00:18:49.36\00:18:52.79
that are
available for you online
00:18:52.83\00:18:55.26
and which we'll make
available to you on our website.
00:18:55.30\00:18:57.90
The key to this
00:18:57.93\00:18:59.27
is understanding that
you should not offer out
00:18:59.30\00:19:02.70
any private
information for someone,
00:19:02.74\00:19:04.44
from someone that
send you an email.
00:19:04.47\00:19:06.54
We've seen so
many different times
00:19:06.57\00:19:08.54
that people are...
have been asked to provide
00:19:08.58\00:19:11.35
specific detailed information
00:19:11.38\00:19:13.88
and that information can be used
00:19:13.92\00:19:16.65
to be sold out
there in the marketplace,
00:19:16.69\00:19:19.42
on a global marketplace,
00:19:19.45\00:19:20.92
for individual who put...
00:19:20.96\00:19:22.29
individuals who'll
pay as little as $35
00:19:22.32\00:19:26.13
for your personal information
00:19:26.16\00:19:27.76
and your bank
account information.
00:19:27.80\00:19:29.73
And then you have a whole new
list of problems to deal with.
00:19:29.76\00:19:34.20
Now, I have a short
video I'd like to show to you
00:19:34.24\00:19:36.94
that will talk to you
about some other type of scams
00:19:36.97\00:19:40.21
that are out there and
it will be very revealing
00:19:40.24\00:19:42.74
to see how they
target their victims.
00:19:42.78\00:19:48.38
Crooks are always
looking for new ways
00:19:48.42\00:19:50.59
to get their victims' money.
00:19:50.62\00:19:52.02
Now some
fraudsters are targeting
00:19:52.05\00:19:53.86
unsuspecting MoneyPak customers.
00:19:53.89\00:19:56.32
Don't be scammed
like Coco and Mike.
00:19:56.36\00:20:00.46
While shopping online,
00:20:00.50\00:20:01.86
Coco has found the
perfect pair of boots
00:20:01.90\00:20:04.40
that are sure
to get her noticed.
00:20:04.43\00:20:06.60
"These boots were made for
me." She contacts the seller.
00:20:06.63\00:20:10.27
Meanwhile, Mike is
having the best day of his life.
00:20:10.31\00:20:13.78
With bills to
pay, he just found out
00:20:13.81\00:20:15.61
he won a
sweepstakes worth $3 million.
00:20:15.64\00:20:19.45
Hello.
00:20:19.48\00:20:21.18
"This is going
to change my life!"
00:20:21.22\00:20:24.29
Even though Mike has
never entered a sweepstakes,
00:20:24.32\00:20:27.06
he's excited to
get all the details
00:20:27.09\00:20:28.92
on how to collect his cash.
00:20:28.96\00:20:30.73
The sweepstakes official
00:20:30.76\00:20:32.09
tells him he's required to
pay the taxes on his winnings,
00:20:32.13\00:20:34.66
$1,000 before they can
release any of the money to him.
00:20:34.70\00:20:38.63
He was told to put
the 1,000 on a MoneyPak.
00:20:38.67\00:20:41.70
Then just call me back,
00:20:41.74\00:20:43.07
with the MoneyPak
number on the back
00:20:43.10\00:20:44.61
and your fees are paid.
00:20:44.64\00:20:46.24
We'll, send you the
$3 million immediately."
00:20:46.27\00:20:49.24
What you're going to do
with all that money, Mike?
00:20:49.28\00:20:53.38
Coco gets an email response.
In stock and ready to ship.
00:20:53.42\00:20:56.75
Yay!
00:20:56.79\00:20:58.12
They explain the
quickest and safest way
00:20:58.15\00:20:59.89
for her to pay for her hot boots
00:20:59.92\00:21:01.39
is through a MoneyPak.
00:21:01.42\00:21:02.76
It's the only
payment that they accept.
00:21:02.79\00:21:04.66
Unfortunately,
00:21:04.69\00:21:06.39
Coco doesn't check
if the online seller
00:21:06.43\00:21:08.26
is an approved MoneyPak partner.
00:21:08.30\00:21:10.07
And also buys a MoneyPak,
00:21:10.10\00:21:12.17
loads it with $120
to pay for her hot boots
00:21:12.20\00:21:15.74
and gives the
MoneyPak number to the seller.
00:21:15.77\00:21:17.61
"That was easy. I
can't wait for my hot boots!"
00:21:17.64\00:21:22.01
Well, Coco, you'll
be waiting a long time
00:21:22.04\00:21:24.98
because you'll
never get those hot boots.
00:21:25.01\00:21:27.62
But the sellers got your money.
00:21:27.65\00:21:30.19
And yes, Mike's life did change.
00:21:30.22\00:21:33.25
His $1,000 in the hole
00:21:33.29\00:21:35.26
and spends most of his
days looking in the mailbox
00:21:35.29\00:21:38.36
for a check
that will never come.
00:21:38.39\00:21:40.43
Don't let a few
minutes with the scammer
00:21:40.46\00:21:41.90
separate you from
what's taken days,
00:21:41.93\00:21:44.40
weeks or even a
lifetime to work.
00:21:44.43\00:21:46.94
Consumer Federation
of America reminds you,
00:21:46.97\00:21:49.54
your MoneyPak
number is the same as cash.
00:21:49.57\00:21:52.67
Use it only to transfer money
to a prepaid card, pay bills,
00:21:52.71\00:21:56.28
or add money to an account
with one of the companies
00:21:56.31\00:21:58.65
that partners with MoneyPak.
00:21:58.68\00:22:00.65
If someone who
isn't on the approved
00:22:00.68\00:22:02.28
MoneyPak partner list
00:22:02.32\00:22:03.65
wants your MoneyPak
number for any other reason,
00:22:03.69\00:22:05.99
such as to pay taxes on
money you supposedly won,
00:22:06.02\00:22:09.09
it's a scam!
00:22:09.12\00:22:10.73
You can protect
yourself from fraud.
00:22:10.76\00:22:12.93
Learn how at
consumerfed.org/fraud
00:22:12.96\00:22:15.60
or moneypak.com.
00:22:15.63\00:22:17.63
Is that something
you've been aware of?
00:22:21.04\00:22:22.37
Have you gotten a call one
time and ask for something?
00:22:22.40\00:22:25.61
I just experienced it recently.
00:22:25.64\00:22:27.71
I think one of my pastors,
00:22:27.74\00:22:29.54
previous pastor's
accounts were hacked into
00:22:29.58\00:22:32.15
and all of his
contacts were emailed saying,
00:22:32.18\00:22:35.18
"Hey, I am stuck
in a specific country
00:22:35.22\00:22:39.12
and I have had my
information stolen from me.
00:22:39.15\00:22:42.62
Can you send me some
money, so I can get my passport,
00:22:42.66\00:22:47.06
documents paid for and
get back to the mainland?"
00:22:47.10\00:22:50.20
I got that. So what did I do?
00:22:50.23\00:22:52.73
Did I send it immediately?
I asked one critical question.
00:22:52.77\00:22:57.77
By picking up the
phone and calling him,
00:22:57.81\00:22:59.84
and saying, "Hey, how
you doing in this country?"
00:22:59.87\00:23:02.54
He said, "I'm not
there, I'm still in Riverside."
00:23:02.58\00:23:05.55
Well, that told me something.
00:23:05.58\00:23:07.12
Someone hacked into his account
00:23:07.15\00:23:08.68
and basically was asking
all of his friends and contacts
00:23:08.72\00:23:13.05
to help him out.
00:23:13.09\00:23:14.42
Now, there's something
you should be aware of here,
00:23:14.46\00:23:16.66
that in business, we've
learned that, there's a way
00:23:16.69\00:23:22.06
to market to people.
00:23:22.10\00:23:23.43
One is just direct mail.
00:23:23.47\00:23:24.80
Direct mail is
sending a piece of mail
00:23:24.83\00:23:26.53
to people you don't even know.
00:23:26.57\00:23:28.24
In sending a piece of
mail to people I don't know,
00:23:28.27\00:23:30.97
the typical response
rate in those type of,
00:23:31.01\00:23:33.94
of mechanisms of reaching out
to individuals is pretty much
00:23:33.98\00:23:37.78
one to maybe three
percent on a on a good day.
00:23:37.81\00:23:41.18
So, we typically expect that
if we sent out 100,000 flyers,
00:23:41.22\00:23:45.59
we're going to get
maybe 3,000 in response back
00:23:45.62\00:23:49.82
on the specific
offer that we're making.
00:23:49.86\00:23:51.96
The same goes to
what these individuals do.
00:23:51.99\00:23:54.33
They send out a
bulk of information
00:23:54.36\00:23:57.50
to as many people
as they possibly can
00:23:57.53\00:23:59.33
in their list.
00:23:59.37\00:24:00.70
And typically, it has
to be people that you know
00:24:00.74\00:24:03.00
or you're associated it with.
00:24:03.04\00:24:04.47
Because that's the way you
are brought into the, the fraud.
00:24:04.51\00:24:10.45
The one thing that
comes to mind is, Ransomware.
00:24:10.48\00:24:13.15
Have you heard of this?
00:24:13.18\00:24:14.52
Ransomware is an
interesting thing
00:24:14.55\00:24:16.65
that has just popped up
over the past couple of years.
00:24:16.69\00:24:19.29
But it's changed a little bit
and you should be aware of it.
00:24:19.32\00:24:22.79
Watch where you
go on the Internet.
00:24:22.82\00:24:25.36
Be very careful where you go.
00:24:25.39\00:24:27.00
And if you go to places
you're not supposed to be,
00:24:27.03\00:24:29.43
that's one of the ways
they target individuals.
00:24:29.46\00:24:32.20
So if you go to a site that
you're not supposed to be at,
00:24:32.23\00:24:35.60
you get an email that
comes into your system
00:24:35.64\00:24:38.27
saying, "Hey, we know...",
00:24:38.31\00:24:42.34
and they, they
provide themselves as,
00:24:42.38\00:24:45.91
as federal employees
00:24:45.95\00:24:47.88
or part of the
government policing society.
00:24:47.92\00:24:51.55
And they say, "Hey,
00:24:51.59\00:24:52.92
we caught you at
this specific website,
00:24:52.95\00:24:54.49
and we know that that's
not really supposed to be
00:24:54.52\00:24:56.32
and we're going
to have to fine you
00:24:56.36\00:24:58.46
for what you've done.
00:24:58.49\00:24:59.83
But click on this
link and we'll help you."
00:24:59.86\00:25:01.26
Well, you click on
the link and what happens?
00:25:01.30\00:25:03.60
It takes you to,
00:25:03.63\00:25:06.53
it, while it opens up
a virus in your computer.
00:25:06.57\00:25:09.54
And that virus
locks down your computer.
00:25:09.57\00:25:13.21
And as it locks it down,
up pops a message saying that,
00:25:13.24\00:25:16.04
"We'll, be able to help you
00:25:16.08\00:25:17.41
if you pay a fee
of $500 on average."
00:25:17.45\00:25:21.72
Do you know how much
money these people made
00:25:21.75\00:25:23.39
over the past
couple of weeks alone?
00:25:23.42\00:25:26.59
They were averaging
$2,000 to $4, 000 on revenue
00:25:26.62\00:25:30.73
on a weekly basis.
00:25:30.76\00:25:32.09
This thing started in Europe
00:25:32.13\00:25:34.00
and it's impacting
many different people
00:25:34.03\00:25:36.36
because they get access
to databases of information
00:25:36.40\00:25:40.27
of, of email
addresses and the like.
00:25:40.30\00:25:43.51
So you get
caught in this situation
00:25:43.54\00:25:46.04
where you know
you've been someplace
00:25:46.07\00:25:48.24
that you're not supposed
to go on the World Wide Web.
00:25:48.28\00:25:50.85
They targeted you
00:25:50.88\00:25:52.21
because somehow
they've gotten information
00:25:52.25\00:25:54.68
because, again,
00:25:54.72\00:25:56.25
there's nothing
hidden on the World Wide Web.
00:25:56.28\00:25:58.92
So where you go,
what you do, how you act,
00:25:58.95\00:26:02.06
what you say in social networks,
00:26:02.09\00:26:04.33
is all monitored.
00:26:04.36\00:26:06.90
And then the
moment you do something,
00:26:06.93\00:26:08.96
someone is out there
trying to leverage that action,
00:26:09.00\00:26:11.83
and finding a way to
get access to your cash.
00:26:11.87\00:26:14.97
This is called Ransomware.
00:26:15.00\00:26:16.77
These are things that you and I,
00:26:16.81\00:26:18.87
all need to be made aware of
00:26:18.91\00:26:20.44
because these are things
that are going on all around us
00:26:20.48\00:26:23.18
and as we are not able
00:26:23.21\00:26:25.45
to protect our
information as we should,
00:26:25.48\00:26:27.98
we should do everything we can
to limit access to who we are.
00:26:28.02\00:26:32.55
Because as we talked
about, people are targeting you.
00:26:32.59\00:26:37.43
They're
targeting your information,
00:26:37.46\00:26:39.36
they're targeting databases.
00:26:39.39\00:26:41.23
They're looking at
how you spend your money.
00:26:41.26\00:26:43.60
They're looking at
different patterns in your life
00:26:43.63\00:26:45.80
so they can
basically begin the process
00:26:45.83\00:26:49.10
of, of, of targeting
how they talk to you.
00:26:49.14\00:26:54.08
And how they talk to you
00:26:54.11\00:26:55.94
is different than how
they talk to everyone else
00:26:55.98\00:26:57.95
because it's information.
00:26:57.98\00:26:59.98
The information they have
is detailed enough to tell you
00:27:00.02\00:27:03.49
how I can speak to a
specific demographic.
00:27:03.52\00:27:06.09
They know your
consumption patterns.
00:27:06.12\00:27:07.52
They know what you do.
00:27:07.56\00:27:08.89
They know how
much money you make.
00:27:08.92\00:27:10.26
They know the fact that,
00:27:10.29\00:27:11.63
I want to win a lottery
and make some a lot of money.
00:27:11.66\00:27:14.96
Here's a key.
00:27:15.00\00:27:16.90
In this specific
fraud called Ransomware,
00:27:16.93\00:27:20.94
guess what the
response rate was?
00:27:20.97\00:27:23.00
The response rate
was 2.9 percent response.
00:27:23.04\00:27:27.14
So, regardless of how
many people they sent it,
00:27:27.18\00:27:29.54
to which I believe
they said they sent it
00:27:29.58\00:27:31.18
to well over
500,000 to 600,000 people,
00:27:31.21\00:27:35.28
2.9 percent of those responded
00:27:35.32\00:27:37.49
and were willing to pay the $400
00:27:37.52\00:27:40.96
to get access to
their computer again.
00:27:40.99\00:27:43.56
And they never got
access to their computers
00:27:43.59\00:27:46.16
because again, the 400
was a fraud to get their money
00:27:46.19\00:27:50.27
and they took
it in to get a fix.
00:27:50.30\00:27:52.47
These are things you should know
00:27:52.50\00:27:54.40
as you Take It to the Bank.
00:27:54.44\00:27:56.74
God bless you.
00:27:56.77\00:27:58.11