(Jim Armstrong, chief information officer, OnPoint Community Credit Union | Photo Courtesy of OnPoint Community Credit Union)
The Federal Trade Commission has reported a surge in fraud complaints — more than 18,000 and counting since January — and they expect that number to skyrocket as millions of Americans receive their stimulus payments over the next few weeks. Locally, OnPoint Community Credit Union has seen three to four times more fraud reports since the COVID-19 crisis emerged and have heard similar trends amongst other financial institutions.
Scammers are more active during uncertain times, so you must be vigilant to protect yourself and your family. During the crisis, they are hoping to catch you distracted and caught off guard; therefore, more inclined to share your sensitive information such as your PIN, Social Security number and online banking credentials. We want to be sure our community is aware of this ongoing threat and the practical ways each of you can protect yourself.
What to look out for
Current scams include callers saying you qualify for a special government grant and then asking for your personal information to receive it. One scam says you can get your money faster if you pay a processing fee. Fraudsters are also sending fake stimulus checks in the mail with instructions to verify personal information in order to cash it. Variations on these schemes involve contacts through text messages, social media posts and email messages.
This is free money from the government so you won’t need to spend money to receive it; there are no short-cuts; and if it’s too good to be true, it probably is.
How to protect yourself
Never engage with people you don’t know, especially if they’re asking for personal information like a password, address or Social Security number.
If you receive texts or emails claiming that you can get your money faster if you send personal information or click on links, this is false. Do not click on anything and delete the texts and emails immediately. If you receive a call supposedly from one of these agencies, ask for their phone number so you can call them back. Any legitimate financial institution or government agency will gladly provide that information. A scammer will not.
Always remember: the IRS or your financial institution will never contact you and ask you to verify your personal information.
If you have been scammed
If you think you’ve been scammed, the first thing to do is contact your financial institution. Talk to them about what happened. Be specific and don’t be embarrassed. They will help you and try to limit the damage as much as possible.
COVID-19 is an unprecedented national emergency, and we must all work together to reduce the impact, such as the surge in fraud. The number of fraud complaints we are seeing is record-breaking. I encourage you to get proactive when it comes to protecting your finances by staying up to date on the latest scams and industry guidance. Click here to download our free cybersecurity eBook. It has these tips and many more on how to protect yourself from online scams at any time of year, not just during COVID-19.
