Protecting Your Finances: How to Avoid Fraud Scams

In today’s digital age, fraud scams are becoming increasingly sophisticated, targeting individuals across all financial institutions, including credit unions. It’s important to stay informed and vigilant to protect your hard-earned money. Here’s a comprehensive guide to help you recognize and avoid fraud scams.

Understanding Fraud Scams

1. Spoofing: “Spoofing” is when a caller deliberately falsifies the information to your caller ID to disguise their identity. Scammers often use financial institutions to spoof so that it appears that the incoming call is coming from your bank or credit union and is a number you may already know and trust. If you answer, they use scam scripts to try to steal your money or personal information, which can then be used in fraudulent activity. Spoofing is especially dangerous because you may not be able to tell right away if the incoming call is coming from a fraudulent source. Always be careful about responding to any request for personal identifying information. To protect yourself, always verify the caller’s identity by contacting the organization directly using official contact information and never share sensitive information over the phone unless you are certain of the caller’s legitimacy
2. Phishing Scams: These are fraudulent attempts to obtain sensitive information such as usernames, passwords, bank account details and/or debit/credit card numbers by disguising themselves as a trustworthy entity in electronic communications. These scams often come in the form of emails, text messages, or phone calls.
3. Vishing Scams: Vishing, short for “voice phishing,” is a type of scam where fraudsters use phone calls to deceive individuals into revealing personal information, such as social security numbers, bank account details, or debit/credit card numbers. These scammers often pose as legitimate organizations, such as banks, government agencies, or tech support, to gain the victim’s trust. They might create a sense of urgency, threatening account closure or legal action to coerce victims into compliance. Vishing can also involve voicemail messages that prompt recipients to call back a fraudulent number. To protect yourself, always verify the caller’s identity by contacting the organization directly using official contact information and never share sensitive information over the phone unless you are certain of the caller’s legitimacy.
4. Identity Theft: This occurs when someone illegally obtains and uses your personal information, such as your Social Security number or credit card details, often for financial gain.
5. Fake Check Scams: Scammers may send you a counterfeit check, ask you to deposit it, and then request that you send a portion of the money back to them before the check bounces.
6. Investment Scams: Fraudsters may promise high returns with little or no risk to lure you into fake investment opportunities. These can include Ponzi schemes, pyramid schemes, and other fraudulent investment offers.

How to Protect Yourself Against Fraud

1. Be Skeptical of Unsolicited Communications: If you receive an unexpected email, text message, or phone call asking for your personal or financial information, hang up immediately. Never give out personal information such as account numbers, Social Security numbers, mother’s maiden names, passwords or other identifying information in response to unexpected calls or if you are at all suspicious. Legitimate organizations will not request sensitive information this way.
2. Verify the Source: If you receive a suspicious message claiming to be from your credit union, contact us us directly at 800-262-1001. Do not use the contact information provided in the suspicious message.
3. Use Strong, Unique Passwords: Create strong passwords for your online accounts, and avoid using the same password across multiple sites. Consider using a password manager to keep track of your passwords.
4. Enable Two-Factor Authentication (2FA): Whenever possible, enable two-factor authentication on your accounts. This adds an extra layer of security by requiring a second form of verification in addition to your password.
5. Monitor Your Accounts Regularly: Check your account statements frequently for any unauthorized transactions. Report any suspicious activity to your credit union immediately.
6. Educate Yourself: Stay informed about the latest fraud scams and tactics. The Federal Trade Commission (FTC) and other consumer protection agencies offer resources and updates on current scams.

Steps to Take If You’re a Victim

1. Contact Us: Report the fraud to us immediately at 1-800-262-1001. We can help secure your accounts and guide you through the next steps.
2. Notify the Authorities: File a report with your local police department and the FTC. This creates an official record of the fraud and can aid in investigations.
3. Place a Fraud Alert: Contact one of the major credit bureaus (Equifax, Experian, or TransUnion) to place a fraud alert on your credit reports. This makes it harder for scammers to open new accounts in your name.
4. Review Your Credit Reports: Obtain a free copy of your credit report from each of the three major credit bureaus. Look for any accounts or inquiries you don’t recognize and report them as fraudulent.
5. Consider a Credit Freeze: If you believe your personal information has been compromised, you may want to place a credit freeze on your files. This prevents new creditors from accessing your credit report, making it harder for identity thieves to open new accounts in your name.

Conclusion

Your financial security is our top priority. By staying informed and taking proactive steps, you can significantly reduce your risk of falling victim to fraud scams. Remember, if something seems too good to be true, it probably is. Always verify the legitimacy of any request for your personal or financial information, and never hesitate to reach out to us for assistance. Together, we can protect your finances and keep your information safe!