2/10/23

In this issue of Q News we are getting serious - Serious about Fraud.

Fraud is unfortunately something that credit unions must deal with and it’s something our members need to be made aware of. If we can recognize suspicious activity together the risks and dangers are far more manageable.  

Here are a few common ways bad guys will try to defraud and scam in 2023:

1. CNP Fraud. CNP stands for Card Not Present. This kind of fraud is newer and thus is harder to protect against at the retail and online level. Spending and shopping online are super easy especially since some retailers make it more convenient for their customers by saving their data and card information. This makes for a quicker order and check-out. Fraudsters try and break through a website’s security measures and steal this information and use it to gain access to your personal account information. Does this happen often? Yes, and CNP fraud is expected to increase by 90% by 2024.
   
   To protect against this fraud, make sure the company you are doing business with is secure, professional, and opt out of the “save this card” option. In addition, you can make sure the website is secure by checking for the little pad lock logo on the far left of the search bar on your internet browser. This isn’t always enough to stop potential theft, but it is an ounce of prevention.

2. Smishing and Vishing. These are funny words, but there is nothing funny about what they stand for. Phishing has been around for years, and most folks have received a phishing call or a text on their cell phones. Phishing is when a nefarious individual, or a group, will send out tons of emails or phone calls “fishing” for folks to click on a link, or tell them specific account or personal info so that they can access your accounts. Phishing is bad news. They cast a big net and hope to make a big catch.
   
   Smishing basically uses the same playbook but the thieves use SMS texting. They send out texts to targeted individuals, or entire area codes, and hope to trick you into thinking that they are part of a large company like Microsoft, Apple, or Amazon. They tell you there is fraud on your account or that your order is wrong and that to correct this all you must do is click a hyperlink to their website. They also request that you call into their help center. 
   
   Vishing uses a Voice over Internet Protocol, or VoIP, mainly using Google Voice. When you answer a strange 1-800 number and it’s a computer voice saying “there is something wrong with your recent order with _____ company. Please call in immediately to 1-800-xxx-xxxx,” that is a Vishing attempt. Do not call this number or give them any information. Typically, they will ask for your name, address, order number, card number, etc. Remember, financial institutions will never call you out of the blue to verify your information. These scammers hope that you have ordered something online and are worried about your shipment. They, however, will only send you the blues.

3. ATO. Account Takeover. This type of fraud is on the rise as well, but sometimes can take a few years to totally activate. The pirates gather your personal and account information gradually over time by way of phishing and other scams until they can actively access your account whenever possible. They also can take some real information and identification and combine it with fake information to create a new person that just so happens to have your info and bank accounts.

This is why it is so important to not click on any hyperlinks and to be vigilant of Phishing, Smishing and Vishing. It’s also important to make sure your passwords are secure, and that you don’t use the same password for everything you sign into. Your password should be something memorable, like a three-word phrase, with random capital letters and symbols. Please don’t use something like a birthday or address, or anything at all like 12345 or QWERTY.

We at Quantum CU are dedicated to account safety and are always on the look out for suspicious actions online and in our branches. With our IT security, and your preventative steps, we should all have a safe and happy financial life.

As Ben Franklin once said, “An ounce of prevention is worth a pound of cure.”