How to Prevent Fraud

 

In some cases, fraud is not preventable and the best you can do is mitigate the damage. However, in many cases you can prevent the fraud from ever occurring. NESC has created this page for the purpose of educating you about the most common fraud that we see here at the credit union and how to prevent it. 


Gift Cards = Fraud 

If you take one thing from this webpage, remember that Gift Cards = Fraud. Below are a few examples of common gift card fraud.  


Do not deposit a check as a favor for a "friend" especially if they want you to:

* Give them cash as soon as the check clears

* Buy gift cards with the funds of the check and send the cards to them

It is a common misconception that a check cannot come back after the check hold period ends. This is not true, a check can bounce days after the check hold is released. It is very possible the check will bounce after you withdraw the cash or purchase the gift cards, at which point you will be out the amount of the check. 


Do not deposit a check from an online employer who has hired you and requests that you:

* Wire them cash as soon as the check clears

* Buy gift cards with the funds of the check and send the cards to them

Some members have fallen victim to believing they were hired by an online company to be a "secret shopper". The company mails a check to deposit. As soon as the hold is removed from the check, you are to purchase gift cards at a local retailer and mail the gift cards back to them. 


Do not pay a bill collector with gift cards.

Scammers will often call you pretending to be from the Social Security or the IRS and request that you make a payment with gift cards. No reputable organization will accept gift cards as a payment.


Other Common Fraud


Do not input your debit/credit card information into someone else's online retailer account such as Amazon, Apple, Xbox, Playstation, Walmart.com, Venmo, Cashapp.

When you enter your card into another person's online account, the card will often be saved on their profile. This means this individual, often unintentionally, can use your card to make purchases which you did not authorize. 

 

Do not click on an emailed link you receive from a bank or online retailer claiming your account was compromised.

Scammers can create emails which mimic major online retailers we all use such as Amazon, Netflix, Walmart. The emails will often claim your account has an issue and you should click on the enclosed link to login and correct the issue. Unfortunately, by entering your account information into this link, you are giving the scammers access to your account. Some links will also install a virus to your computer allowing scammers access to even more information. 

Instead of clicking the link, you should go to the company's website directly and access your account that way. 

 

Do not give your debit card and pin# to anyone to use. 

This is far more common then you think. However, by giving them the card and the pin#, you are essentially giving this person access to all of your money. Doing this may also leave you with no ability to file a debit card charge dispute. 

 

Do not give your Online Banking or Mobile passwords to anyone else. 

By giving access to your Online Banking or Mobile to another person, you are entrusting them with access to all of the funds in your account.