Scams have been around forever (Ponzi scheme, anyone?), but technology and the internet have made them proliferate exponentially! We face a difficult balancing act, wanting to offer you all the ease and convenience of electronic services and keep you safe from scammers. Some days, it feels like we are losing this battle.
While we can’t possibly address every scam out there, I did want to highlight a few that we have seen escalate in recent years, or even months. Romance scams are high on the list. Online romance scams involve creating a fake online identity to gain a victim's trust and affection, eventually leading to financial exploitation. Scammers often build a relationship quickly, professing love and building a sense of intimacy before requesting money or other forms of payment. They may use fabricated stories to gain sympathy or suggest investment opportunities. Scammers use stolen photos or create fabricated profiles on dating sites, social media, or online forums. They may impersonate celebrities, military personnel, or individuals working abroad to make their story more believable.
Another common scam we see, especially among our elderly members, is computer or account takeover. Members are contacted by someone claiming to be from Microsoft, the Geek Squad, or another legitimate business. They are told that a virus has been detected on their PC or device and that their online banking is compromised. They allow the technician remote access to their PC and instruct them to give out their online banking login information to fix the issue. Once the scammers gain access to your accounts online, they can create all sorts of havoc, including transferring money and locking you out of your account.
Finally, we have started to see cryptocurrency scams. This one also starts with online communication and establishing a relationship. Members are then convinced to deposit cash into a Bitcoin or cryptocurrency ATM. Once they deposit the cash, of course, they cannot get it back.
These three examples are just the tip of the iceberg. But we have seen members lose thousands of dollars through these and other scams. We have also prevented tens of thousands of dollars from being lost, either by members calling us with their suspicions that something is wrong, or because our trained staff detects something is amiss. Some of the policies we have put in place, including check holds, and extended check holds on deposits we are unable to verify, are a direct response to these losses or potential losses. While some of these policies are inconvenient, protecting our members and the credit union from possible financial loss outweighs that hardship. At least we hope you see it that way.
Bottom line - if ever in doubt about communication you receive, don’t hesitate to contact us! The first rule of thumb, of course, is never to give out your private information. If you have done this and suspect something is wrong, call us. That is why we are here. Our website even has a special page dedicated to keeping you safe- check it out and help us protect you.
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