The News on Fraud

Fraud News: What scams are fraudsters using today?

Every day when you read the news there is always a story of someone or entity being affected by fraud.  Sadly this topic has become a common occurrence in our society today.  Fraudsters are becoming increasingly savvy using information they can find about you through social media and other platforms to create ways to gain access to your hard-earned money.  Piedmont Advantage Credit Union’s Fraud Department closely monitors and investigates transactions for potential fraudulent transactions and wants to keep members alert to red flags that should serve as a warning to avoid being scammed.  We wanted to share with you some types of fraud that we are seeing so you can be prepared and vigilant in protecting your assets.   

Tech Support Scams.  

Many people today feel the frustrations when dealing with technical issues concerning the home PC or mobile devices.  We all have been there, needing assistance with an issue, and the provider’s tech support is always so helpful in correcting an issue. 

Currently, fraudsters (or a team of fraudsters) are using this tactic to potentially con you out of money posing as tech support for recognizable companies.  For example, fraudsters will pose as Microsoft, Geek Squad, or other tech support workers to gain access to your accounts through the lure of a pop-up appearing on their computer screen that says something like, To avoid a $300 tech support renewal fee charge to your account, click the following link OR call the following number to cancel your automatic renewal.  The fraudster may even claim to be transferring them to a PACU employee, but this is also part of the scam.

• The member clicks the link or calls the number which allows the fraudster to gain access to their account either directly by clicking the link or by instruction through a phone call.
• Since they fraudster now has access to their account information, the fraudster will move for example, $30,000 from the member’s money market account to their checking account, then say to the member “I inadvertently refunded your account $30,000 instead of $300 and need you to send the $30,000 back to me through a wire (or some other method).
• The member looks at the checking account and sure enough sees an extra $30,000 there without realizing it is their own money and sends the fraudster $30,000.

Job Scams. 

We have seen where a member applies for a job online through Indeed (or some other job site).  The member is called, interviewed, and offered a job.  The company then says they will be sending them a check in the amount of $5,000 (for example) and instruct them to cash the check and buy gift cards and send to them or simply return the funds through some kind of external transfer (money transmitter company, etc.).  The explanation for returning the funds varies but is always fraudulent.

Romance Scams. 

In a time where people are looking for human interaction or companionship during a pandemic, fraudsters are trying to capitalize on human emotion.  Victims usually meet the fraudster through an online dating site or other social applications offered online.  The victim is groomed for months or maybe even a year by the fraudster to gain the member’s trust (through phone calls, email, and other online communication).  During this time, the victim becomes so attached to the person (fraudster) and trusts them completely.  The fraudster has usually weaved a story about working overseas and needing money, or needing money for medical expenses, etc. and begins asking member for money.  The requests continue and the amounts become larger and more frequent.  The financial loss can be hundreds of thousands of dollars of the member’s own funds or borrowed funds that the member is responsible for paying back.  Victims can be any age, but are usually 50 years old and older.

Elder Financial Exploitation. 

Fraudsters use a similar technique as in Romance Scams, to gain the member’s trust and friendship.  Once the member is won over, the fraudster starts asking for money.  In this scenario, the fraudster can also be a family member, caretaker, or trusted friend who has access to the member’s checkbook, debit card, or appears in a branch with the member who request cash withdrawals.  The fraudster simply will write checks to themselves, with cash from the ATM using the member’s debit card, or keep the withdrawn cash for themselves after the in-branch withdrawal.   Again the loss to the member can be hundreds of thousands of dollars.  Victims are usually 65 years old or older; or members with a disability of some kind.

Tips to help protect yourself as a member:

• Do not click on links unless you initiated the request
• Understand that employers do not send a new hire a check with instruction for returning the funds as part of the job or before they begin working
• If the story does not make sense, it’s likely fraud
• If a person claims to transfer you to PACU, hang up and call PACU yourself using the number from the PACU website
• Be leery of anyone trying to befriend you that you have not met in person
• Please know that PACU will never call you asking for personal account information

We hope this helps shed some light on ways that fraud can occur.  Using the tips above is always a good way guard yourself against falling victim to fraud.  Always have a watchful eye on your accounts; whether that be by reviewing your statements regularly by mail or online.  If you have not signed up for eStatements, this is a perfect time to do so.  The process is easy and is a great way to monitor your accounts and statements.  To sign up visit www.PACU.com/estatements.  Follow the steps and you will be able to access those statements at any time.