Be Aware! Current Fraud Schemes

High Point FCU, and financial institutions across the country, are seeing a sharp rise in attempts by bad actors and scammers to steal and defraud our members and damage their financial health. In an effort to help our community of members, we have put together a list of some of the common schemes we have seen recently with the hope that knowledge will help our community to avoid these pitfalls.

REMOTE TAKEOVER

Members are getting Pop-Ups on their computers about antivirus software or about their computers having a virus/malware problem. They are calling a number provided to them (which is NEVER the real number for the business) and they are being put through to a scammer that tells the member they need to get gift cards or mail cash to fix the issue.

Never follow a number provided to you in a link you were not expecting. A pop up on your computer is NOT a reliable source, and the number they provide that claims to belong to a company you know is almost certainly not the real number, no matter how official it may look!
If you are worried about malware and are getting pop-ups, you should either look up the official support line for the manufacturer ON A DIFFERENT DEVICE, or take your computer/phone/tablet/etc. to be professionally cleaned.
NO OFFICIAL COMPANY ACCEPTS ANOTHER COMPANY’S GIFT CARDS AS LEGAL TENDER, ESPECIALLY NOT TO RESOLVE FRAUD CHARGES. NO EXCEPTIONS.

Threat/Coersion/Extortion:

Members get a call from someone claiming to be a business or Law Enforcement Agency and tells them they are under investigation, typically for very serious crimes that would make the member too scared to think clearly

Child Pornography Charges/Presence of these materials on their computer
Serious car accident/investigation of a murder
Etc.

These can also be calls from someone claiming to be or claiming to have a family member of the person they are calling. Could be pretending to be a younger relative calling to ask for help, could be someone pretending to be a police officer/ law enforcement agent and requesting “Bail Money” for someone they claim to have in custody. In some extreme cases it can be someone pretending they have a relative held hostage so that members will be too afraid to hang up or think clearly.

Members should ALWAYS hang up and call that relative at a number THEY ARE FAMILIAR WITH. It does not matter if the caller spoofed their relative’s number, that only works for outgoing calls and can be circumvented by hanging up and calling their ACTUAL relative.
It also helps to remember that the police will NEVER EVER call to blackmail someone into providing bail over the phone. They have a very specific, structured, orderly process for addressing the issue of bail and they are not allowed to accept payment directly, or in the form of Gift Cards.

CU IMPERSONATOR

We have seen a significant increase in attempts to defraud our members by calling them pretending to be an agent of the Credit Union, typically in the Fraud department. They will call and claim that fraudulent transactions are being posted to the account. They will ask the member to respond to our Fraud Center’s Text as valid so they can continue their activity, or they will ask for a validation/MFA code sent to a member via text/email so that they can deepen their access.

Never be afraid to hang up and call back when dealing with a CU representative and make sure you are using a number that YOU KNOW. We understand that fraud happens, and we will not be angry at anyone for wanting to validate that the caller truly represents the Credit Union.
Please note that we will NEVER advise a member to respond to a fraud alert untruthfully. If you do not recognize a transaction and someone is telling you to reply “V” for Valid, hang up the phone and call us at our local number 716-372-6607 and ask for someone in card services so they can help.

MOBILE DEPOSIT FRAUD

Members are being given fake checks online and being lied to by Fraudsters claiming that they’ve been hired for a new job or otherwise are being given “free money” and told it is legitimate. IT NEVER IS. If something sounds too good to be true, it is. Sometimes members make the mistake of depositing checks they suspect to be fraudulent and assuming that if the hold is released, that it is a good check. That is not the case, and in fact doing so can hurt your relationship with the credit union as well as your long term financial health. While the credit union will never stop assisting its members however possible, the expiration of a hold on a check DOES NOT constitute a guarantee that the check is not fraud. The purpose of a funds hold is to give a check enough time to process through appropriate channels, but this does not mean it is guaranteed to be a good check if the hold expires. If the check is later determined to be fraudulent, you will be responsible for the funds, and your account services may be limited going forward.

If you are “gifted” a check, you’re likely in the beginning stages of fraud.
If you are asked to deposit a check and then give part of the funds back to whomever gave the check to you, or to a 3rd party, the check will be returned due to fraud and when it does you will be on the hook for the funds that were taken out.
CU Employees on the front line may voice concerns if they are worried about a check, but this does not absolve anyone from individual responsibility to only negotiate checks/monetary instruments in GOOD FAITH. If you do not believe it is a good check, do not attempt to deposit/cash it.

Here are some additional tips to help you remain vigilant:

Stay Informed: Keep yourself updated on the latest fraud trends. Scammers frequently modify their tactics, so being aware of current schemes can help you avoid falling victim to them.
Review Your Accounts Regularly: Make it a routine to frequently check your account statements and online banking activities. If you spot any unfamiliar transactions, report them right away.
Secure Your Information: Use strong, unique passwords for your financial accounts, and change them regularly. Whenever possible, enable two-factor authentication for added security.
Be Skeptical of Unsolicited Offers: Whether it’s a phone call, email, or message, be cautious of unexpected offers or requests for personal information. Legitimate organizations will not pressure you to make hasty decisions or request sensitive details.

By staying informed and cautious, you can significantly lower the risk of fraud. Together, we can cultivate a safer financial community. If you ever have questions or need advice, remember that our team is just a call or message away. Your peace of mind and financial security inspire us to provide the best service possible. If we suspect you are being defrauded, we will not engage in the transaction, ensuring your safety remains our top priority.