‘Tis the Season for Scams

It’s been several weeks since we have talked about fraud prevention, but ‘tis the season. Scammers often target victims around the holidays. Why? They know that people are going to be spending money, using technology, and looking to donate to charity around this time of the year. Let’s look at common schemes and how they can be prevented.

Phishing

Most of us are skipping the lines in brick-and-mortar stores for the convenience and germ-free shopping experience offered by online retailers. Unfortunately, our love for technology puts us at a disadvantage when it comes to protecting our sensitive information. Scammers use convincing email or text messages to try and trick you into giving them your login information, personal information (like a social security number, address, date of birth, etc.), or banking information like a debit or credit card number, expiration date or PIN.

If you receive an email, double-check the sender’s email address by hovering over the name. The sender’s domain name should match the domain name that the organization uses. Pay special attention to the layout of the message, if the email looks “on-brand”, grammatical errors and if the message makes sense. Never click on any links that are embedded in the body of the email – doing so may install malicious software on your device.

Spoofing

Robocalls never seem to stop, do they? Unfortunately, these are not the only type of phone scams commonly used to target victims. Fraudsters can make a call seem like it is coming from a legitimate institution by using Caller ID.  These calls typically come from “your bank/financial institution” asking for you to verify your information or otherwise compromise your security.

What if your bank calls you to say that you are eligible or pre-approved for a loan? That’s great news right around this time of the year, right? Not if it’s a scammer. If you provide your account (or member number) and routing number to a scammer, they can have full access to your account. NEVER provide your account number, social security number, online banking credentials, or card information to anyone claiming to be from your bank. If there is any question about the validity of the request, end the call and call the bank directly at a known, published number.

Skimmers

Visiting an ATM to get cash, or maybe stopping for gas and paying at the pump? Be sure to check the card reader for skimmers. Skimmers are devices attached to the reader that can capture your credit or debit card information. This can be used to generate duplicate fake cards that scammers use for purchases. The best way to ensure your information is protected is to perform a thorough visual inspection of any card reader before you use it. Look for signs of tampering, loose parts, and extra pieces that look out of place. While you are at it, snoop around for any signs of hidden cameras that might be pointed at the pin pad or towards the card face. It’s best to skip readers altogether if possible and opt for using a tap and go system or E-Wallet instead.

Intimidation

Remember – scammers want your money, and they aren’t afraid to try and scare you into giving it to them. They are likely to use intimidation and fear tactics to get you to react. This might mean they pretend to be calling from a government agency like the IRS or a police department. They might threaten to hurt a family member for a ransom or even pretend to be a down-on-their-luck celebrity that needs your help. The bottom line is, don’t fall for threats or intimidation.

Situational Awareness

Since we are talking about protecting yourself financially, remember to protect yourself physically, too. If you are going shopping in a physical store, be aware of your surroundings – especially upon arriving at the parking lot. If possible, park away from other vehicles and in a well-lit area. Keep your car doors locked at all times while you are in the car and after exiting the vehicle. Avoid using your cell phone or otherwise being distracted while you make your way to the store. Finally, if you see something suspicious, call the police. There are a ton of stories making their way across social media of tricks that people use to try and lure victims into their car. Whether they are all true or not is inconsequential. Take any potential threat seriously because your life could depend on it.

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Krista Kyte is a personal finance blogger and personal banker with over 18 years of experience in the financial industry. Krista is passionate about helping our members understand their financial situations. She writes tips that will help consumers reach and maintain financial security, and start living the life they’ve always wanted.