Fraud prevention
Defend yourself with skepticism and knowledge
[October 9, 2010]
Think of five people you know who are 65 or older. If they’re a typical group, one of them has been a victim of fraud.
More than 7.3 million American seniors have been victimized, according to a survey released this year by the non-profit Investor Protection Trust.
Of particular concern are the millions of seniors with MCI (mild cognitive impairment). They can perform most daily tasks but have a bit of trouble with short-term memory, language and other functions. You and I might shrug off occasional “senior moments,” but it’s serious when someone struggles to manage their finances or forgets to be skeptical of strangers offering something for nothing. That makes them vulnerable to fraud.
Here are three common schemes:
Congratulations! You won the lottery!
The setup: You receive a check and letter saying you’ve won a lottery, often in another state or country. You’re told to cash the check and use a wire service like Western Union to send back a portion for fees.
The fall: After you wire away money from your own account, the check is returned as counterfeit.
The lesson: No one wins a lottery without buying a ticket, and no legitimate lottery asks that you return part of the winnings.
I saw your item on Craigslist
The setup: You post an item for sale and hear from an interested party, often from out of state. The buyer sends a check for more than enough to cover the advertised price and shipping, and asks that you return the surplus, usually via a wire service.
The fall: The check is counterfeit. You lose the money you wired away, and the item you shipped.
The lesson: If you’re going to sell online, deal in cash from people you can meet face-to-face in a public place (not your home). Craigslist never guarantees transactions.
Paid to go shopping
The setup: An unexpected check arrives with a letter saying you’ve been hired as a secret shopper. You’re directed to deposit the check into your account and use the money to buy items (which you can keep) so you can review the service provided by the sales clerk. Also, you’re instructed to wire back a large share of the money from the check, so you can review the service provided by Western Union staff.
The fall: The check is counterfeit. The senders don’t care about your reviews. You’ve lost the money you wired and must pay for your purchases.
The lesson: Some legitimate businesses hire secret shoppers but they do not require anyone to send them money. If you didn’t apply for the job, then it’s bogus.
STCU fraud fighters
STCU is committed to helping protect our members Our fraud-revention team trains employees to spot, stop and report anything suspicious. Last year, they prevented an estimate $605,000 in fraud.
If you have doubts bout the validity of a check, or feel that you might be a victim of ascam nvolving your accounts, give us a call. We'll be glad to help.
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