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Despite our industry’s best efforts, scammers are not going away any time soon. If anything, there appears to be a constant uptick in the number of attempts to take financial advantage of innocent people. That’s why it is important for credit unions to help their members stay up to date on common red flags and current scams to protect them from personal loss and/or harm.
Late last week, our League was contacted by a credit union who had three members in one single day victimized by a fraudster. Each member received a phone call from someone claiming to be from the Federal Bureau of Investigations (FBI), threatening to arrest them for inappropriate underage content “being found” on their computer—unless they took out a large sum of money and put it into a bitcoin machine, an untraceable way to transfer funds.
One of these members withdrew $40,000, tried inserting it into a bitcoin machine, and when it did not work, they met the fake FBI agent in-person in a parking lot. The scammer got away with the $40,000. Fortunately, the victim was unharmed despite being face-to-face with the impersonator.
We encourage your credit union to remind members that a financial institution and/or a government agency—such as the FBI or the Internal Revenue System (IRS)—will never ask for personal information or make threats in demand for cash over the phone. If they receive such a phone call, they should hang up and report it to local law enforcement. It is also a good idea for them to take precautions like changing passwords, checking credit reports, and possibly even freezing their credit.
Additionally, it’s crucial to inform members to never meet with scammers in-person; staying apprised of current scams and knowing what to look out for in fraud attempts is unbelievably essential in providing the best chance of protection. Maine Credit Unions’ Fraud Prevention Hub hosts ample information on fraud and how to remain safe; this is a great resource to share with your members.