Current Frauds & Scams

Fraudsters search for victims on social media sites. They reach out to unsuspecting individuals about their pictures, claiming they want to use them for pieces of art that they are working on.  They send a check to pay for the rights to use the photos and then ask the victim to forward part of the funds to be used for the production of the art.

• Never accept checks from someone you meet through social media. Checks are not guaranteed funds. Insist on guaranteed funds if you do business with someone you don’t know.
• Never share online credentials with someone so they can deposit to your account.

Victims of this kind of scam are usually people with limited technical knowledge who need assistance through their smartphones or computers. Let’s take a look at how it works:

• Contact is made. Either they called you or they got you to call them by a pop-up on your computer or a text or email designed to get you to call.
• They need access to your device. It may be to repair, or it may be to help to set up a refund.
• They need to set up a transaction. Either they need the payment for their work done, need to set up a refund, or need to help you dispute a transaction they say happened.
• They want access to banking info. Generally, they want online banking but could ask for a card number.
• There is an “error,” and they transacted the wrong amount.  “Oh no,” they could get into trouble.  “Please don’t tell anyone.”
• They need your assistance to return the funds in a way that won’t be noticeable.  This could be by gift cards or a wire.  They may coach you on how to keep your bank from noticing a problem.
• You realize later that funds are missing from other accounts.  They tricked you by transferring your funds and getting you to send them voluntarily.

A fraudulent buyer pays significantly more than the asking price and then requests the extra money be sent elsewhere (Such as to a mover or returning the overage of funds).  They want the funds sent in guaranteed funds, but they paid with a check that will bounce.

• Checks are not guaranteed funds and usually take about a week to bounce when they are invalid.  This includes cashier’s checks which are easily counterfeited.  Regular check holds are not long enough to protect against bounced checks.
• The issuing financial institution can verify cashier’s checks.  You or the depository financial institution can call them directly for verification. Financial institutions generally don’t call to verify each check, so if you suspect a problem, please ask that extra caution be taken.
• Cash or instant transfer systems are safer for these kinds of transactions.

In this kind of scam, a representative claiming to be from a reputable company responds to someone seeking a job or loan online. They offer funds in the form of a check the victim needs to send somewhere else to “prove payment” for a loan or purchase equipment for an at-home job. The check bounces after the guaranteed funds were sent. In most cases, these scammers never collect personal information such as a social security number that would be required for a loan or employment.

A fraudster claiming to work for a popular product (such as soft drinks) contacts you. They offer to pay you to have your car wrapped in advertising and then drive around like you normally do.  They send you a check that includes your earnings and the funds to send to a professional wrap company that they select for you. You deposit the check, send the money to schedule your wrap, and then the check bounces.

You receive an official looking package through the mail. Inside is a check and a detailed letter explaining a request for your help to survey merchants by using the check funds to purchase gift cards or instant transfers. You give the gift cards or transfers to the fraudsters, and a few days later, the check bounces.

Someone reaches out through social media wanting companionship. They convince you that they are just lonely and will pay you to talk to them. They want to send you a check for a larger amount and then have you send money for a donation or another person helping them.

Credential stuffing is when fraudsters use previously exposed credentials, such as login names and passwords from hacked services (LinkedIn, Facebook, etc.) to automate log-in attempts on websites and online services across the internet. The hope of the fraudsters involved is that the users have re-used the same usernames and passwords elsewhere. When these criminals have a legitimate account on the hook, they contact the account owner and use scam techniques to get into the account. They may pose as credit union employees or fraud department personnel to obtain the last bit of information they  need to break through that final wall of security. 

Use complex usernames

Members who have easy-to-guess usernames may be vulnerable with this scam. You may be using an email address or just your first and last names. This is just too easy for someone to guess. This is the time to let your creativity shine. Make your login name a phrase only you would know, but that’s easy enough for you to remember. Refrain from using this new username anywhere else.

Change passwords frequently

Even if you have complicated, hard-to-guess passwords, with all the data breaches going on, your passwords may become vulnerable at some point. Be smart and change them regularly, especially for sites where the loss would be personally and/or financially devastating.

Learn More

Out of the blue, you get a call or email from the Internal Revenue Service (IRS). Or at least, a fraudster claiming to be the IRS and that you owe them money that must be paid immediately, typically through a wire transfer from your bank or something even more unusual, like gift cards. 

This is a scary scam and for good reason. Victims are often threatened with jail time or with having their driver’s license revoked. The fraudster may even know the last four digits of your social security number, which might add extra pressure, or have another fraudster call you, claiming to be the police.

The best way to avoid this scam is to know what the IRS will NOT do:

• The IRS will never call you and demand an immediate payment over the phone and they’ll never require a certain type of payment (like a credit card). These are merely techniques fraudsters use to scare people into taking immediate action.
• Additionally, the IRS will never ask for your credit card number over the phone or demand a payment without providing you a way to appeal the charge.

If you get one of these emails or calls and you’re not certain if you should ignore it, simply call the IRS – the real IRS – and ask for yourself.

Fraudsters search for victims on online dating sites and they often play the long game, cultivating relationships over a period of time in order to solidify a victim’s trust. According to the FBI, romance and similar confidence scams cost consumers more money than any other kind of Internet fraud. 

It’s important to remember that when you’re talking to a stranger on an online dating site… you’re talking to a stranger. When “meeting” someone online, Google them. See if you can determine their authenticity. You can also copy the images someone has posted on their dating profile and run them through a reverse-image search engine, such as Google Images. If the images come up associated with a person who has another name or lives in a different city, you have good reason to suspect that the images were stolen from someone else’s profile.

Additionally, never give any personal information to anyone online before confirming who they really are, be wary of anyone who is reluctant to meet you in person, and when meeting someone in person for the first time, choose a public location that’s filled with people.

Scammers are spoofing financial institution caller IDs to call and ask people for their banking and personal information. Bank customers and credit union members — including UCCU members — are being targeted. Our members have reported getting calls, emails, and text messages that look like they’re from UCCU, but they’re actually from scammers.

To learn more, visit our Phishing Scams Article

Vhishing is the voice counterpart to phishing. Typically, attackers use a technique called caller ID spoofing to make it look like calls are coming from a legitimate or known phone number. Because people typically trust the caller ID, spoofing phone numbers can cause big problems.

With online phishing attacks, fraudsters direct consumers to phony websites. With Vishing, a recorded message will typically tell users to call a toll-free number. The caller is then asked to share their credit card number or other personal information. Don’t do it!

You get a letter or email from a fraudster who claims to be a lawyer of legal official, telling you that a person sharing your family name has died and that they have been unable to identify any of the deceased person’s relatives. As a result, the money will go to the government, so the lawyer suggests that because you share the same family name, he could pay the inheritance to you. 

All you have to do is split the money with the lawyer.

Of course, there is no inheritance, and if you respond to the fraudsters, they’ll ask you to pay various fees, like taxes and legal fees. Every time you make a payment, the fraudsters will come up with a reason why the inheritance can’t be paid out unless you make another payment, as well as providing “reasons” why the fees can’t be taken from your inheritance and must to be paid upfront.

Don’t respond to an email or letter informing you that someone you may be related to has died without leaving a will and don’t pay fees to “research specialists” who offer to sell you an estate report that includes information on the inheritance and how you can claim it.

Odds are, most of us have gotten an email from a “Prince” at some point in our lives. While it may seem funny to think of falling for it, investment scams have gotten more and more difficult to spot over time. Here are a few of the most common…

• Pension Scam. You worked hard for your pension. Fraudsters who know this and want to get to your pension before you may try to entice you with an RRSP (Registered Retirement Savings Plan) loan that lets you get around the tax laws and access to your money now. All you have to do is sell investments in your locked-up retirement account and use those profits to buy shares in a certain company. In return, you’ll get the majority of the money you invested loaned back to you while the fraudster keeps the rest as a fee. Sure, you’re told you’ll get cash and pay no taxes, but the investment you buy may be worthless, you may never see the loan, and you could lose your retirement savings.
• The Bereavement Scam. Because many Baby Boomers are seniors, fraudsters know they’re especially vulnerable during the passing of a loved one. In a Bereavement Scam, fraudsters scan obituaries in order to contact relatives and make false claims about money owed, often applying a lot of pressure, as fraudsters are known to do. Don’t fall for it. At the very least, verify the authenticity of all people and claims before taking any other action.
• Exempt Securities Scam. One day, you get an unsolicited call or email that offers you the chance to invest in a company that is about to go public. Sure, this type of opportunity is typically only available to the wealthy but (lucky you!) an exception is being made… if you’ve got the money. Don’t fall for it and don’t feel pressured without performing an appropriate amount of due-diligence.
• Offshore Investing Scam. The promise here is to avoid or lower your taxes if you send your money “offshore” to another country. You should be very careful when anyone suggests a scheme to avoid taxes because it might mean breaking the law. Even if it’s legal, you could end up with unexpected interest back taxes, or other penalties from Uncle Sam.

You get a call or letter informing you that you can win millions in a foreign lottery. Is this your lucky day? Nope, it’s most likely a scam that’s hoping to lure you in with the promise of a big prize. Most lottery scams are perpetrated by con artists in other countries, sometimes using U.S. addresses to disguise their real locations. 

Your chances of recovering money from foreign crooks in a lottery scam may be even worse than your odds of winning an actual lottery. Differences in legal systems, difficulties of conducting investigations in other countries, expenses and other complications involved in pursuing cross-border fraud make the chances of getting your money back extremely slim.

Remember that it’s illegal to use the mail or telephone to play lotteries across state lines or national borders, which means you’ll never get a real invitation to play from another state or country. And if you’re told you’ve won a contest you never even entered, you can be sure if it’s too good to be true.

Example: You just received notice (via phone, email, or letter) that you have been approved for a loan that can help you rebuild your credit. The loan proceeds will be sent to you in the form of a check. You are told to cash the check when you receive it and then send in a large initial payment using a money order or gift card. By the time your financial institution notifies you that the loan proceeds check did not clear, you’ve already made your first large initial payment.

Example: Beware of Facebook imposters. Fraudsters sometimes create false social media profiles of people you know and trust and then make an urgent request for money. Be sure to always ensure that the social media profile of friends and family are who they say they are.

Rule of Thumb: If checks and information is coming from different companies or is inconsistent, stop all communication and/or negotiations immediately. 

Rule of Thumb: If you are ever asked to send someone money using Western Union, Money Gram or gift cards… don’t because it is going to be a scam every time!  

Example: A fraudster tries to convince you that you need to provide your online banking login credentials. Legitimate companies will never need to “pretend” to be you to complete a transaction. Never share your online banking passwords with anyone that is not a joint-owner on your account.

Rule of Thumb: If something doesn’t feel right, trust your gut and stop all correspondence. 

Always conduct buy/sell transactions face to face and always in cash or cashier’s check. 

NOTE: Most cities have a designated “safe zone” where good lighting and 24 hour surveilance cameras can provide an added level of comfort to buy/sell transactions, custody exchanges, etc.

Rule of Thumb: Never make financial commitments when you’re feeling confused or powerless. High pressure sales are all about manipulation. If you start to feel overwhelmed, anxious, rushed or like you just can’t think clearly, come to your own rescue. Walk out of the room. Hang up. Call a friend. 

NOTE: The IRS Scam detailed on this page is an excellent example of how fraudsters use scare tactics.

Example: You’ve won the lottery or you are a sweepstakes winner. The company does not want the announcement of the winner to go public yet. The taxes need to be paid in advance of receiving the balance of your winnings in a lump sum. You are told that you will receive a check which you can use to pay the taxes. You are instructed to deposit the check and then send a Money Order or Money Gram back to the company to cover the taxes.