Scammers and fraudsters are convincing people to lie to their bank or credit union in order to get you to wire funds to a specified account!
Your University Credit Union is concerned about your financial well being and have noticed a troubling trend happening here in South Florida.
This is extremely concerning as lying to your financial institution can have severe consequences. Not only may you lose your life savings, but you may also be in trouble with the law if you wire funds to a criminal or terrorist group on government watchlists. The Financial Crimes Enforcement Network (FinCEN) requires financial institutions to report suspicious activity and may lead to your accounts being scrutinized by the government.
The scam artists often pose as trustworthy helpers. They can be strangers, such as telemarketers and tradespeople, or have a relationship with the targeted victim, such as friends, family members, doctors, lawyers, accountants, and paid or volunteer caregivers.
Many scammers have paperwork that appears to give them legal authority to act -- including powers of attorney, authorizing signature cards, and vehicle pink slips.
Common Financial Scams
Financial scams include a broad range of conduct -- from outright taking of money or property to using technology to get personal or financial information, to getting paid for care, products, or services and then not providing them.
Keep an eye out for these common scams:
Catfishing scam. Catfishing is when someone steals from a person that they've 'met' online. However, some alleged suitors or friends are really just people hanging around the web waiting to prey on individuals who are lonely. These scammers may endear themselves to you -- and then ask you for money to help with an emergency like to bail them out of jail or make a flight back to the United States. Most often, scammers will never meet you and are actually located someplace other than where they claimed to be.
Telemarketing or mail fraud. The U.S. Department of Justice estimates that dishonest telemarketers take in an estimated $40 billion each year, bilking one in six American consumers. Scammers use the phone to conduct investment and credit card fraud, lottery scams, and identity theft. Another form of this fraud is when scammers use the phone to sell goods that either never arrive or are worthless junk.
Phishing scam. Phishing is when a criminal uses fake emails, calls, or texts to steal a victim's personal information. In one common phishing scam, a person will receive an email that says it is from the person's bank or investment account and that the person needs to update their information. This is really just a ploy to get your information and steal your identity.
Social Security spoofing scam. Scammers contact people by phone and claim that the victim's Social Security number has been suspended due to suspicious activity and asks the victim to confirm their number or risk the possibility that the number will be seized. The scammers are sophisticated and may use caller ID spoofing to make it look like they are actually calling from the Social Security Administration.
Internet fraud. Some people are slow to embrace new technology, which is why they are sometimes targeted in internet scams. Individuals may download a fake anti-virus program or viruses by clicking on pop-up windows. This action allows scammers to extract personal information about you.
Fraudulent legal documents. Many scammers cloak their actions in legal authority, procuring a power of attorney or will or other legal document giving them access to your property. They get you to sign these documents by lying to, intimidating, or threatening you and often tell you to lie to your financial institution.
Texting scam. A scammer texts deceptive messages to try to get a person to provide their personal or financial information. For example, the scammer might promise a prize to the first 100 people who respond to the message. The scammer then uses the information to steal your identity or to commit fraud.
Grandparent scam. In this situation, a scammer calls the elderly person and pretends to be their grandchild. The grandchild will then ask for money for an unexpected financial problem like not having money for rent, medical bills, or car repairs. The scammer will plead with the grandparent not to tell their parent.
Undue influence or fraud. Many people have been duped into parting with their homes or other property because a scammer convinces them it is for their own good. In one infamous case, three officials from the Detroit-based Guardian Inc. were found guilty of embezzlement and fraud after selling a client's house for $500 -- to the mother of a company officer. The company also collected excessive fees from its wards, sometimes as high as 70 percent of their Social Security checks.
Lottery scam. Scammers inform victims that they have won the lottery or sweepstakes -- but they just need to pay for taxes or other fees before the rest of the money will be released. They might even send a check to the victim to make it seem more real, but the check will just bounce.
In one of these scams in Canada, the U.S. Attorney General and the Solicitor General of Canada estimated that scammers were able to steal about $1 billion a year from its citizens.
Home repair scam. Typically working in teams of two or more, scammers scour neighborhoods with a high concentration of older residents, or even track recent widows and widowers through obituaries and death notices, then appear on their doorsteps claiming to spot something in need of fixing -- a hole in the roof or clogged drainpipe, for example.
The scammers demand payment upfront, and then often claim that their initial investigation reveals a more serious problem, with a more expensive solution. The "work" they do is unlicensed and often shoddy, such as applying paint to a roof to make it appear as if it has been tangibly fixed.
How Scammers get Paid?
• Wire funds out of their account to the scammer
• Deposit a check from their account to the scammer
• Send a check to the scammer
• Send outgoing ACH credit to the scammer’s supposed financial institution
• Co-sign on a loan or even apply for a loan
• Apply for a new credit/debit card or obtain an additional card
• Apply for a gift card or reload cash on a card
• Transfer funds within the credit union to another account
• Withdraw funds to provide to the scammer