Fraud Alert: Shared Branching Network

October 30, 2019 |

In an effort to keep you apprised of the latest security threats, the League wants to alert you about fraudulent cashier’s checks circulating within the Shared Branching network. The checks appear to be originating from Triangle Credit Union and Louisiana Federal Credit Union and are being generated as part of a Craigslist scam. Samples of the checks are below:

What you can do:

As a credit union employee, you should proceed with caution if a cashier’s check is presented to you, especially if it’s for a large amount. Cashier’s checks have become an increasingly attractive vehicle for fraud. Employees can help protect members by asking them questions or contacting the bank or credit union on which the check is written to verify it is genuine.

You also can alert your members about this latest scam. Even though these checks are originating from out of state, it does not mean they can’t make their way into your credit union. If a member deposits a fraudulent check, the responsibility for that deposit is theirs even if they didn’t know the check was fake.

Additionally, consider sharing the following tips with your members to help protect them from check fraud:

  • Deal with local buyers on Craigslist and similar sites. Use extreme caution when dealing with foreign buyers and sellers.
  • Use caution when making transactions with cashier’s checks.
    • Insist on other forms of payment that you know are more reliable, but never share your bank account information.
    • Find out as much as you can about the other party.
    • Never accept a check for more than you asked for. Always insist on a cashier’s check for the exact amount due.
    • Require a cashier’s check drawn from a local financial institution only.
  • Inspect any check you receive, looking for signs that it’s a fake (misspelled words or poor quality paper).
  • Verify funds by speaking with a manager when you deposit the suspect check. Explain the situation and your concerns.
  • Remember, no one gives away money for free!

By staying informed and keeping vigilant, we can help prevent check fraud.