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Knowledge is the greatest tool against scammers this holiday season
American retailers are gearing up for Black Friday and Cyber Monday sales but so are the scam artists.
“What we’re really trying to do now is educate people,” said Brian Dowgiallo, vice-president of risk management for Genisys Credit Union and its branches serving Macomb and Oakland counties.
“We see a lot of people getting information off of Facebook and other social media sites about sales that are fake and once they enter their credit card information there’s not a whole lot that can be done to stop the scam. If it sounds too good to be true, that’s probably the case,” Dowgiallo said.
As scams and financial fraud continue to rise, Genisys Credit Union and other financial institutions are working to provide consumers with knowledge and tools to identify and prevent fraud.
And supporting law enforcement efforts to catch the perpetrators is part of that effort.
“We recently saw fraud that affected over a hundred members and their debit cards. The counterfeit debit cards were being fraudulently used at a grocery store chain,” Dowgiallo said. “The credit union worked with local law enforcement to prosecute the ring who was involved in the fraud.”
Local law enforcement did not disclose how the ring obtained the debit card information, but Dowgiallo suspects a scanner device may have been involved.
That’s just one trick amongst the tricksters.
Financial fraud can take various forms including: identity theft, phishing scams, phone call/text scams, fraudulent investment schemes, and more. What’s most important for the general public to remember is to stay vigilant and scrutinize unsolicited emails, phone calls, or text messages requesting personal or financial information.
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“Scammers love to spoof our phone number,” Dowgiallo said, noting that the best way to combat this behavior is to just hang up.
However, since consumers don’t always do this it’s good to know, Genisys or their card security services like many other financial institutions will never ask members to verify the following information over the phone:
• Personal information including: member number, date of birth, and social security number
• Full or partial debit, credit card or PIN numbers
• Online/Mobile banking credentials
• A one-time verification code or link that was sent
• “Test” transactions that you did not complete as legitimate.
To help even further the Credit Union recommends all consumers:
Verify sources
Before you provide any information or financial transaction, verify the legitimacy of the organization/individuals contacting you. Use official contact information obtained from reliable sources such as the website of the financial institution or a visit to their local branch location.
Remember, just because the Caller ID looks accurate, it could still be a scammer. If you are not expecting a call from your financial institution, hang up and call them back at a verified number you have
Protect personal information
Safeguard personal information such as a birthdate or social security number and financial information by using secure passwords. Another tip, never reuse the passwords or the same one for multiple accounts/sites. It’s also smart to avoid sharing sensitive details on public platforms, and shred documents containing confidential data.
Monitor accounts regularly
Check and review your bank accounts regularly including statements, credit reports, and online accounts for any unauthorized transactions or suspicious activity. If you do see something off, promptly report the discrepancy to your financial institution.
Set up and monitor eAlerts
Many banks offer a service that monitors your account via eAlerts to receive email or text alerts for account balances, cleared checks, debit/credit card authorizations, debit/credit card postings, deposits to your account, pending withdrawals, ACH withdrawals, and many more
Over the holiday season there’s a good chance new scams will pop up, as thefts work to find new ways to take advantage of giving consumers. A few of the scams that have been reported recently include:
• Police in Shelby Township were warning residents of a recent scam involving emails to residents claiming to be from the Shelby Charter Township Revenue Department attempting to collect unresolved balances associated with their property. It’s a scam. The Shelby Township treasurer’s office does not send out emails to collect past due balances, and there is no “revenue department” in Shelby Township.
• Another scam is a text message posing as the credit union stating there has been an unrecognized attempt on a member’s debit and/or credit card.
• Phone scams posing as the credit union stating there has been fraudulent activity on a member’s credit card or that a credit union representative will be stopping by to pick up a debit card that was closed due to fraudulent activity.
Dawn Fraylick, the communications director at the Macomb County Prosecutor’s Office, shared three recent scams they have encountered.
Spoofing Scam:
A new scam targeting Macomb County residents, where calls come in with the sheriff’s office caller ID. The caller claims a warrant is out for your arrest and demands payment over the phone to avoid jail time.
Important Reminder: The sheriff’s office or any police department will never call you to pay for dropping a warrant or request money over the phone for any reason.
Title Company Scam (Home Purchase):
When purchasing a new home, scammers may pose as title companies and call to ask you to wire a deposit before your closing appointment. When you arrive at closing, the title company expects the deposit, and there has been no prior contact with them.
Safety Tip: Verify wire information before sending wires to the title company or any other business.
Bank Fraud / Spoofing Scam:
You may receive a text asking to verify or deny a charge on your card and then receive a follow-up call from someone claiming to be your bank stating that your card has been compromised. They may then state they sent you a code and ask you to read the code sent to your phone to them. The scammer is attempting to gain access to your account through two-factor authentication.
Warning: Do not share the code. Banks will never ask you to verify a code over the phone. If you receive a notice about your card being canceled and a new one being issued, it will not be followed by a request for additional verification by phone. Always verify any communication in person at your bank branch.
If you become a victim of fraud it’s important to take immediate action to reduce the impact and protect your finances. Some of the first steps that can be taken include:
• Contacting your financial institution — notify your financial institution immediately to report the fraudulent activity and request assistance in securing your accounts.
• File a report — depending on the nature of the scam, the incident will need to be reported to relevant authorities including: the Federal Trade Commission (FTC), local law enforcement agencies, and credit bureaus to document the fraud and initiate any needed investigations.
• Manage card access in card controls — these allow you to manage when and how your cards are used. If you suspect fraud on your cards, turning them off in card controls will protect your account from additional transactions coming through until you can contact your financial institution.
• Update security measures — enhance security measures by updating passwords, enabling multi-factor authentication if it is already not being utilized, and continue to monitor accounts for any additional unauthorized activity.
Consumers can also reach out to a government agency that specializes in fraud. A full list of these agencies and what kind of fraud they cover can be found through the U.S. Department of Justice (DOJ) at: justice.gov/criminal/criminal-fraud/report-fraud; cases of fraud can also be reported to the Federal Trade Commission (FTC) online at: http://reportfraud.ftc.gov or by phone at: 1-877-FTC-HELP or 1-877-ID-THEFT. To report fraud in Michigan visit michigan.gov/sos/report-fraud.
“It’s really frustrating and we feel for our members,” Dowgiallo said, but the more knowledge people have about what’s going on, the more power they’ll have to protect themselves against it.
