Scams Archives - Red Crown Credit Union

Taxpayer Identity Theft

Posted on March 15, 2022March 15, 2022

Time has flown by – it’s already tax season! During tax season, scammers are on the prowl. In 2020, The IRS Criminal Investigation identified $2.3 billion in tax fraud. That is something you do not want to be victim of! Scammers have been known to pretend to be the IRS and may contact you by phone, email, text message, and mail. Below are some common types of scams.

Refund Recalculation Scam

In this situation, you will receive a text or email from an imposter saying that the IRS recalculated your tax refund and that they owe you more money. The email may have the IRS logo and a link for you to click on to submit a fake form for the refund. The link will ask you to provide your SSN, birthday, address, driver’s license number, and other personal information.

Tip: If the IRS did make a refund mistake, they will contact you through the mail first. They will never ask for financial or personal information through email. If you get an email, do not click on any links and delete the email.

Gift Card Scams

The gift card scam is becoming more common. The criminal will call saying that you owe the IRS money and if you do not pay a penalty fee, they will charge you with criminal activity. They will instruct you to purchase the gift cards from various stores and then the scammer will ask for the card’s number and pin.

Tip: The IRS will never call you about taxes you owe or penalties. No government agency will ever demand that you pay by a gift card.

NCUA/FDIC Needs Your Bank Information

NCUA is a federal institution that insures your money if your credit union fails (FDIC is the insurance corporation for banks). The scammer will contact you through emails, phone calls, letters, text messages, and social media asking for your bank information. Scammers will claim that they are the NCUA, to get your personal information to commit fraud.

Tip: The NCUA says that they do not send unsolicited correspondence asking for money, sensitive personal information, bank account information, card numbers, SSN and will never threaten you.

Tax Transcript Email Scam

Scammers will email you claiming to be the “IRS Online”. The email will contain an attachment that has your taxpayer’s tax transcript. A tax transcript is a summary of your tax return.

Tip: A tax transcript is a real thing from the IRS, but they will never email it to you. You will need to request it from the IRS and they will send it by mail.

These are just a few types of scams, but beware there are a lot more out there. Learn more about tax scams at https://www.irs.gov/newsroom/tax-scams-consumer-alerts.

Signs of Identity Theft

The IRS says that you may not know you’re a victim of identity theft until you’re notified by the IRS of a possible issue with your return.

Be alert to possible tax-related identity theft if:

You get a letter from the IRS inquiring about a suspicious tax return that you did not file.
You can’t e-file your tax return because of a duplicate Social Security Number.
You receive a tax transcript in the mail that you did not request.
You receive an IRS notice that an online account has been created in your name.
You receive an IRS notice that your existing online account has been accessed or disabled when you took no action.
You receive an IRS notice that you owe additional tax or refund offset or that you have had collection actions taken against you for a year you did not file a tax return.
IRS records indicate you received wages or other income from an employer you didn’t work for.
You’ve been assigned an Employer Identification Number, but you did not request an EIN.

Ways to Protect Yourself

Keep your SSN in a secure place.
Make sure your tax preparation services are a legit company.
File your taxes early.
If you file online, make sure you use a secure connection.
Don’t click on unknown links.
Don’t trust IRS calls, email, and text messages.
Don’t send personal information through social media.

Conclusion

If you have experienced tax fraud, visit the IRS taxpayer guide to tax fraud to learn what your next steps should be. If you have fallen victim to identity theft, report it immediately to the Federal Trade Commission at https://www.identitytheft.gov/#/ or by phone at 1-877-438-4338. You should follow their recommended steps to make a recovery plan.

*Red Crown Credit Union is not a financial planner or advisor, and this blog gives general ideas on how to prevent fraud. Individual results may vary.

Account Takeover

Posted on January 14, 2022January 19, 2022

Have you ever experienced fraud or identity theft? If you haven’t, consider yourself lucky! Security.org says that banking accounts are the second most common type of personal accounts to be taken over, comprising 32 percent. Criminals have become more and more clever in how they get your information.

Below is a story of how a Red Crown member was almost a victim of an account takeover:

A member was contacted by a scammer claiming to be an online shopping representative saying there was an issue with her account. She gave the representative access to her computer to fix the problem. The scammer logged into her online banking and made her account look like it had more money in it, then asked her to send money back to them.

The member became suspicious and called Red Crown about her account. After listening to the member and reviewing her account, we believed that this was a scam. We suggested that she turn off her computer and disconnect from the internet. Luckily, she called us before sending money and did not fall victim to this scam. When something seems off about your account, contact your financial institution immediately.

Throughout this blog, we will be informing you on different types of account takeovers, criminal techniques, and prevention methods.

Type of Account Takeovers

Criminals can take over many types of accounts. Below are a few examples of different types of account takeovers.

Financials: They can take over your credit card, checking, or savings account.
Travel: They can use your frequent flyer miles.
Government Benefits: They can use your information to get money back or steal your incoming checks.
Insurance: They can use your information to get money from you and the insurance company.
Cell Phone Contracts: They can take control of wireless phone contracts, calling people and receiving calls and texts on your dime.

Criminal Techniques

Card cracking happens when someone responds to a solicitation for money through the internet. The scammer will get their account information to make purchases or withdrawals on their account. People who fall victim to card cracking will give scammers their debit card information, PIN, and online banking credentials.

Tip: Criminals are targeting people through social media platforms. They typically target college students, newly enlisted military, and single parents. Do not give your personal information through social media.

Hackers can figure out your password by using a computer program. The program will try different password combinations till it finds the correct one.

Tip: Make sure your password is strong by using more than eight characters, add a special character, use a different password for different accounts, and do not use a common password. On some accounts, you can use multifactor authentication or a face identifier. Doing this will provide extra security on your account.

Email phishing scams are when criminals send you an email that looks official in an attempt to get your data. The email will entice you to open a link or click an attachment that can cause harm to your computer. They may also ask for your data, such as credit card information, SSN, and online banking information.

Tip: When you first receive an email, check the domain for that company. You can hover over the email address and if it looks off, research it. Remember, do not open attachments from unknown sources.

Common Prevention Steps

Credit Report: Look at your report regularly.
Financial Statement: Always check your statement to see if you recognize the transaction.
Alerts: Set up alerts on your account.
Identity Theft Protection Program: Sign up for a program to help monitor your personal information and help detect any potential fraud.

Conclusion

Follow these tips to help decrease your chances of an account takeover. If you have fallen victim to identity theft, report it immediately to the Federal Trade Commission at https://www.identitytheft.gov/#/ or by phone at 1-877-438-4338. You should follow their recommended steps to make a recovery plan.

*Red Crown Credit Union is not a financial planner or advisor, and this blog gives general ideas on how to prevent identity theft. Individual results may vary.

COVID-19 Scams

Posted on April 28, 2021April 28, 2021

During the pandemic, there have been new opportunities for criminals to commit fraud by attempting to take advantage of people through COVID-19 scams. Knowledge about these scams can help you avoid being victimized. Red Crown has made a list of tips to keep you alert about COVID-19 fraud.

Unemployment Benefits

One major scheme that criminals are doing is taking someone’s personal information and filing unemployment claims. They are targeting employed people. People learn about this scam when they receive a notice from the unemployment benefits office or their employer.

If this happens to you, the quicker you act on the issue, the better! Click HERE to learn more about how to protect your finances/credit from this scam.

Relief Check Scams

The IRS has said they will be distributing the third round of relief checks the same way they did for the first round. The IRS saw scams with the last round and want you to be aware of some red flags. Below is what the IRS will not do:

Claim you received an overpayment and ask you to return the money.
Send you a password to use online to access or verify your account.
Contact you by email or social media to gather personal information.

One important thing to remember is that the IRS will first contact you by mail. For more information, go to the IRS website.

Vaccine and Treatment Scams

Criminals are now selling fake COVID-19 test kits and unapproved treatments through phone calls, social media, and at your door. Two scams you should be aware of are COVID-19 Testing Schemes and COVID-19 Treatment Schemes.

COVID-19 Testing Schemes: The scammer will say you are required to take a COVID-19 test. They will try to get your health insurance and other personal information. Once they have your information, they will bill the health insurance plan for tests/procedures that you did not get. The scammer will then receive money off those fake bills.
COVID-19 Treatment Schemes: These scammers are selling fake cures, treatments, and vaccines. They will ask for your health insurance information and other personal information. Approved treatment will not be communicated to the public this way. When approved treatments become available, you will not hear about them through a phone call, email, or online advertisement.

Never give your personal/health information to someone you do not know or trust. You should only share your information with a trusted medical professional.

For more information, go to https://www.fbi.gov/news/pressrel/press-releases/fbi-warns-of-emerging-health-care-fraud-schemes-related-to-covid-19-pandemic.

Other COVID-19 Related Scams

Fraudsters have always used emails, phone calls, or in-person methods to scam people. Below is a list of cons being used to get your medical/personal information:

Scammers are imitating the IRS through phone calls, emails, social media, and texts.
Robocalls making fraud offers to sell respiratory masks and other medical equipment/devices.
Fake emails to your personal/business account that appear to come from a trusted source.
Creating a non-existent charitable organization that is trying to get your money/or personal information. Make sure you do your research before clicking on links to donate.

Conclusion

Criminals will continue to find new methods to exploit people through COVID-19 scams. Remember, do not give out your personal or bank information – stay alert. For more information, go to fbi.gov/coronavirus and the FTC at FTC.gov/coronavirus.

*Red Crown Credit Union is not a financial advisor. The FBI, Consumer FTC, and IRS websites were used for writing this blog. This blog gives general ideas on ways to stay alert for COVID-19 fraud. Individual results may vary.