Fraud is rampant worldwide and can affect almost anyone. The AARP estimates that 141.5 million adults, or 42% of the U.S. population, have had money or sensitive information stolen through fraud. Meanwhile, the Federal Trade Commission estimates that Americans lost more than $10 billion to scams in 2023.
At Credit Union of America, we know that safeguarding your financial information is a top priority. Recently, we've noticed a surge in fraudulent phone calls, texts, and scams that are affecting our valued members. As criminals continuously refine their tactics, we want to ensure that you are well informed and equipped to protect yourself from fraud.
In this article, we aim to help you prepare for and prevent potential scams. We’ll review basic ways to secure your financial information, look at some of the more common scams making the rounds, and give you key tips to protect yourself from scammers.
Get Smart: How to Protect Yourself from Scams
Falling victim to a scammer can be a frustrating and even scary experience. It’s also very unfortunate because it is relatively easy to protect yourself or at least make it much harder for fraudsters to steal your financial information.
Here are our 10 top tips for how to protect yourself, your money, and your financial information.
TOP 10 WAYS TO AVOID SCAMS AND SCAMMERS
| ☐ Never respond to suspicious emails or phone calls claiming your account has been frozen or that you are the victim of a fraudulent transaction. Fraudsters can be very manipulative on the phone, and fake emails can be convincing. Most reputable financial institutions will not ask for sensitive information over the phone. |
| ☐ Always verify contact details if you are asked to send money or sensitive information to a phone number, website, or physical address. You can do this by calling the company directly using a known, legitimate phone number. |
| ☐ Never share personal or financial information like social security numbers, passwords, bank details, or credit card information with unverified recipients. Again, legitimate organizations will not ask you to send sensitive information in this way. |
| ☐ Avoid granting direct access to your devices or accounts, even if asked to by an “IT technician” seeking to update software or to complete a transaction. Be cautious about budgeting programs or savings or credit score “helpers” that ask for access to your checking account to monitor your spending. |
| ☐ Use strong, unique passwords for all your accounts and change them regularly. Use a password manager to store all your sign-ins and to generate hard-to-guess passwords. Never include names, birthdays, addresses, or other personal details when creating a password. |
| ☐ Immediately lock your card and report any suspicious activity to your financial institution if you suspect you have been scammed. Look for unrecognized transactions or withdrawals on your account or an unexpected change in your credit score. |
| ☐ Do not share personal information on social media sites or answer polls that ask for information that could allow scammers to guess a password or change your login information. Examples include your pet’s name, favorite color, birthdate, the street you lived on as a child, the school you went to, etc. |
| ☐ Opt-in to text alerts whenever your debit or credit card is used. You can be notified when specific transactions are conducted, including logging into your online banking accounts. You can manage these options under the Tools tab of CUA’s online banking service. |
| ☐ Sign up for notifications when your credit is pulled. Credit bureaus usually offer this service for their own records. There are also third-party credit monitoring services that monitor numerous sites. Some are free, others charge a fee. |
| ☐ Do not respond to anyone who claims they owe you a refund for any reason. Similarly, never accept checks or automated deposits from parties you do not know personally. Never agree to buy gift cards to reimburse someone who claims they have sent you money either deliberately or “in error.” |
7 Common Types of Scams
Now, let’s take a look at some common types of scams. As always, these may seem obvious on paper, but fraudulent requests can seem very tempting, especially if you are caught off guard.
1. Amazon Refund Scam
We are seeing an increase in scammers falsely representing themselves as legitimate companies. You’ve likely heard that individuals receive calls from companies, such as Amazon about an unauthorized charge. When the customer says they didn’t make the charge, the scammer says they’ll offer a credit once the customer provides some information.
Legitimate companies will not ask for personal information to facilitate a refund. And generally, they won’t call you about a transaction.
2. Software Provider Scam
Another common scam we’re seeing is where a member receives a notification on their device supposedly from Microsoft or a security software company. The message is worded to cause concern, trying to tempt the member to click on the link or phone link to contact the company.
Unfortunately, that phone number or email link is NOT going to a legitimate company. It’s going to the scammer that is posing as the company. Additionally, if a company issues a credit and then asks for you to return a portion of it, don’t do it.
3. Portrait-for-Cash Scam
This is a newer scam and it’s targeting younger adults and teenagers. An “artist” on social media reaches out to a member, most often on Instagram. They offer to paint photos the member has posted, and they offer to pay the member for the use of the photo.
The scammer then requests their private email and sends them a fake check that is for much more than what the “artist” indicated they would pay the member. When the member brings this to their attention, the scammer directs them to deposit the check via SnapCheck and send any extra back to the “artist” for art supplies.
It sounds good as the member is getting a portion of the check, but days later the check is returned as altered or fictitious. The member is out of the portion of the funds they sent back. CUA staff review remotely deposited items before the deposit is approved, but it is not always obvious with the check alone that it is fraudulent.
It’s best to not accept checks from unknown people and if you do, you should leave 100% of the funds in your account until your financial institution is certain they can’t be returned.
4. Fraudulent Texts
Various forms of fraudulent texts are making the rounds again. Remember, CUA will never send a text message stating you are locked out of your account, that your account is restricted, or that you need to confirm information. Never provide personal information via a link that you were not expecting, from any company.
Should you receive a text requesting information that appears to be from CUA, please contact CUA Member Support at 1(800) 256 8049 before clicking on the link. Should you provide information and then rethink the action, contact us immediately during normal business hours so we can evaluate the situation, and take any added steps needed to protect your account.
5. Stolen Identity Loan Applications
Having someone steal your identity and then take out loans or credit cards in your name is a nightmare. Be vigilant in protecting your personal information. Be sure to follow all of the above anti-fraud tips. In addition:
- If you see unauthorized transactions or logins to your account(s), contact your financial institution(s) immediately.
- Use different passwords on each site you use. That way if one gets compromised, the others won’t.
- Check your credit report regularly to ensure no fraudulent applications are being submitted. You can obtain free credit reports every 12 months from TransUnion, Equifax, and Experian through Annual Credit Report. You do not have to request all three at the same time.
- Check your financial accounts frequently, both at statement time and during the month, to watch for unauthorized transactions.
6. Job and Loan Application Scams
Fraudulent job and loan application sites often ask for online banking information. In the case of fraudulent job sites, this is supposedly for payroll, equipment, or verification purposes, even before you’ve gotten the job.
- Fraudulent employers may also send you a check via email for you to deposit. You are then asked to return the funds so they can “purchase equipment to send to your home office”. Unfortunately, the check is not cleared by the bank and is returned to you. You are out of the amount of money you sent and you have no job.
- For fraudulent loan sites, individuals are sent a check less than the loan amount and asked to deposit it and then return the funds to the “lender.” It’s explained that this verifies your account and/or that you can repay the loan. Again, the original check is returned against your account, your money has already been sent, and there is no loan.
- Job and loan scams are also commonly used to ask for sensitive information, like social security numbers, birthdates, and bank account details, so these can be used to remove money from your account or even steal your identity.
7. Credit Card Scams
We’re also seeing more sneaky “sweetheart” or “friend” scams. A “friend,” usually someone they have not met in person, offers to make a payment on an innocent individual’s credit card. In return, they want the person to get a cash advance off the card to send to the scammer’s checking account, purchase gift cards, or send to another third party.
As with the employer and loan scams, the payment the scammer made ends up being returned insufficient or the financial institution may not accept it if it's not coming from the owner of the credit card account.
Another red flag is the scammer will stress urgency in getting the money or gift cards sent to them so they receive it before you are notified that the payment to your credit card was not good. You’re then out the money or gift cards they sent. In addition, this could even result in an over-limit balance on your card and penalties when the card payment is returned.
These types of scams are particularly prevalent around the holidays.
What to Do If You Think You Have Been Scammed
Discovering you have or might have been scammed is always upsetting, but it’s important to take action right away. Here are some critical steps you can take to protect yourself.
SCAM RECOVERY CHECKLIST
| ☐ Secure your accounts |
Change your passwords, ask a credit bureau to freeze your credit, and notify your financial institution. |
| ☐ Monitor financial statements |
Check your credit reports regularly for any signs of fraud or identity theft. |
| ☐ Sign up for an identity theft recovery service |
These services offer around-the-clock help to secure your assets. They are offered as a stand-alone service, or as a perk on some credit cards. |
| ☐ Seek legal advice |
If you believe your identity was stolen, it’s wise to consult a lawyer to explore further steps you should consider. |
| ☐ Emotional recovery |
Being scammed can cause stress and anxiety. Consider talking to a counselor if you’re struggling to cope. |
Frequently Asked Questions
Finally, let’s provide answers to some of the more frequently asked questions regarding fraud and identity theft.
How Do I Know If I Am Talking to a Scammer?
Several telltale signs can help you spot a scam. Scammers typically contact you through unsolicited calls or emails and immediately put you under pressure to act. They will also ask you to provide personal or financial details up-front, often by unsecured channels. Legitimate companies do not do this.
Should I Report Scams?
Yes, it’s important to report scams to your financial institution and local authorities. You can also report scams to the Federal Trade Commission’s Report Fraud website.
Can I Get My Money Back If I Was Scammed?
In some cases, financial institutions can recover stolen funds if reported quickly. For fraudulent transactions, your bank or credit union may assist with reversing the charges, especially if you report the incident promptly.
What Should I Do If I've Been Scammed?
If you believe you have been scammed you should:
- Immediately contact your financial institution to secure your accounts.
- Change your passwords and monitor your accounts for suspicious activity.
- Report the scam to the relevant authorities (FTC, local police).
- Check your credit reports regularly for signs of fraud or suspicious activity.
How Credit Union of America Protects You
Scammers are becoming increasingly crafty, often posing as IT, anti-fraud investigators, job interviewers, and loan officers to deceive you into revealing sensitive account information. We want to emphasize a crucial point: Credit Union of America will never call or text asking for sensitive information.
Here's a list of what CUA will never inquire about over the phone or through text messages:
- Your social security number
- Account numbers
- Credit or debit card numbers
- Security codes
- Your online banking username or password
- Your PIN
If you ever receive a call or text requesting any of this information, please, DO NOT RESPOND OR CLICK ANY LINKS. Instead, immediately hang up and contact us if you have any questions or concerns.
To ensure your financial security at CUA, please follow these essential steps:
- Use the Official CUA Mobile Banking App: When accessing your online banking information, always use our official CUA Banking app. Avoid typing sensitive information anywhere else.
- Visit Our Official Online Banking Website: To be certain you're interacting with CUA, go directly to our official website when conducting online transactions. Fraudsters may try to replicate our website, so ensure that your address bar shows https://cuaonline.cuofamerica.com/ when logging in.
- Trust Your Instincts: If something feels “off” during a phone call or in a text message, hang up and verify the authenticity of the contact by calling our member support center.
Ready to learn more about how to avoid scammers? Click below to find out about how you can protect yourself from fraud and identity theft by securing your accounts.
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