Gulf Coast Educators FCU

Scam Alerts

We'll post the latest scam alerts here so that you can protect yourself and your loved ones. If you know of a scam that you want our members to be aware of, send an e-mail to jmackay@gcefcu.org.

Last updated: 03/19/2008 02:10 PM

[read] Learn the Basic Scams
[read] VISA & MasterCard Telephone Scam
[read] Internet/E-mail Fraud Alert
[read] Check Scams
[read] Loan Advance Scams NEW

Learn the Basics of the 6 Most Popular Scams
Most of the scams we list here will fit into one of these 6 most popular categories.

Foreign Business Offers: Scammers pretend to be businesspeople or government officials and promise millions of dollars. But real companies and government agencies don’t offer legitimate business propositions to people they don’t know.
Love Losses: The scammer poses as a romantic interest online, and promises to come to the U.S. to be with the victim. Soon after, the online friend asks the victim to cash a check or money order to cover “travel expenses.”
Overpayments: Scammers buy merchandise online, and then claim they mailed the wrong amount by mistake. The seller is asked to deposit the “wrong” check anyway, and then return the “excess” amount to the scammer. But the check doesn’t clear, and the victim has sent the scammer his own money.
Rental Schemes: Scammers claim to be moving to the area, and put down a rental deposit. Then they tell their landlord they have unexpected expenses, so they ask for some of their deposit back as a favor. They never move in, and the deposit check never clears.
Sudden Riches: The scammer claims the victim has won a foreign lottery or sweepstakes. The notice comes by mail, phone, fax or email. Consumers should know that winners of real cash prizes are notified by certified mail.
Work-at-Home: The scams promise easy money by “processing” checks. The victim deposits the checks and sends the money to the scammer, minus a small fee. Legitimate companies don’t do business like this.

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VISA & MasterCard Telephone Scam
Do NOT give the 3-digit code (from the back of your credit card) to anyone! Read about the "newest" scam below...

The Holiday Season is just a little bit down the road and the bad guys are already trying to get free stuff by using your credit. I just received this so thought I'd forewarn you and forward it on. New Credit Card Scam Snopes.com says this is true. http://www.snopes.com/crime/warnings/creditcard.asp This one is pretty slick since they provide YOU with all the information, except the one piece they want.

Note, the callers do not ask for your card number; they already have it. This information is worth reading. By understanding how the VISA & MasterCard Telephone Credit Card Scam works, you'll be better prepared to protect yourself.

One of our employees was called on Wednesday from "VISA", and I was called on Thursday from "Master Card".

The scam works like this: Person calling says, "This is (name), and I'm calling from the Security and Fraud Department at VISA. My badge number is 12460. Your card has been flagged for an unusual purchase pattern, and I'm calling to verify. This would be on your VISA card which was issued by ( name of bank). Did you purchase an Anti-Telemarketing Device for $497.99 from a Marketing company based in Arizona ?" When you say "No", the caller continues with, "Then we will be issuing a credit to your account. This is a company we have been watching and the charges range from $297 to $497, just under the $500 purchase pattern that flags most cards. Before your next statement, the credit will be sent to (gives you your address), is that correct?"

You say "yes". The caller continues - "I will be starting a Fraud investigation. If you have any questions, you should call the 1- 800 number listed on the back of your card (1-800-VISA) and ask for Security.

You will need to refer to this Control Number. The caller then gives you a 6 digit number. "Do you need me to read it again?"

Here's the IMPORTANT part on how the scam works. The caller then says, "I need to verify you are in possession of your card." He'll ask you to "turn your card over and look for some numbers." There are 7 numbers; the first 4 are part of your card number, the next 3 are the security Numbers' that verify you are the possessor of the card. These are the numbers you sometimes use to make Internet purchases to prove you have the card. The caller will ask you to read the 3 numbers to him. After you tell the caller the 3 numbers, he'll say, "That is correct, I just needed to verify that the card has not been lost or stolen, and that you still have your card. Do you have any other questions?" After you say, "No," the caller then thanks you and states, "Don't hesitate to call back if you do", and hangs up.

You actually say very little , and they never ask for or tell you the Card number. But after we were called on Wednesday, we called back within 20 minutes to ask a question. Are we glad we did! The REAL VISA security Department told us it was a scam and in the last 15 minutes a new purchase of $497.99 was charged to our card.

Long story - short - we made a real fraud report and closed the VISA account. VISA is reissuing us a new number. What the scammers want is the 3-digit PIN number on the back of the card. Don't give it to them. Instead, tell them you'll call VISA or Master card d directly for verification of their conversation. The real VISA told us that they will never ask for anything on the card as they already know the information since they issued the card! If you give the scammers your 3 Digit PIN Number, you think you're receiving a credit. However, by the time you get your statement you'll see charges for purchases you didn't make, and by then it's almost too late and/or more difficult to actually file a fraud report.

What makes this more remarkable is that on Thursday, I got a call from a "Jason Richardson of Master Card" with a word-for-word repeat of the VISA scam. This time I didn't let him finish. I hung up! We filed a police report, as instructed by VISA. The police said they are taking several of these reports daily! They also urged us to tell everybody we know that this scam is happening .

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Internet/E-Mail Fraud Alert
Recently, there have been multiple e-mail fraud attempts, known as "Phishing”, that were initiated via e-mail sent to both the general public and to some credit union members that appeared to be from NCUA. This false e-mail asked for the recipient to click on a link to verify their credit union account registration. If the recipient proceeded to do so, the link directed them to a false website and asked for their credit union account number and PIN, along with other personal information.

NCUA does not ask credit unions members for such personal information. Anyone who receives an e-mail that purports to be from NCUA and asks for account information should consider it to be a fraudulent attempt to obtain their personal account data for an illegal purpose and should not follow the instructions in the e-mail.

If you responded to such an e-mail and provided any confidential account information, please notify your credit union immediately of the scheme. You should also change your account’s PIN, and take any additional action recommended by your credit union to protect your account.

If you feel that you have received a fraudulent phishing e-mail purportedly from NCUA please forward the entire e-mail message to Phishing@ncua.gov

Additionally, you can file formal complaints concerning any suspected fraudulent e-mail with the Internet Fraud Complaint Center (IFCC) at ncua@ic3.gov. The IFCC is a partnership between the Federal Bureau of Investigation, and the National White Collar Crime Center.

For more information including sample e-mails, click here.

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FRAUD ALERT - Check Scams
If you can answer "YES" to any of the following questions. Someone might be trying to SCAM you.

Is the check from someone you met on-line, or someone you have been communicating with through email?
Is the check for payment of an item you were selling on-line? If so, is the check for more than the item's original selling price and or value?
Is the check for payment of a rental property or room for rent?
Is the check for payment or commission of employment from a "work at home" position, where you were "hired" on-line or over the phone?
Is the check a loan of funds in order to pay taxes/fees to receive other funds, such as an inheritance or lottery winnings?
Was the check received in either the mail or express mail?
Were you asked to "wire", "send", or "ship" the funds from these checks to a large US city or to another country, such as Canada, England, Romania, or Nigeria?

If you can answer "YES" to any of the above questions please inform a credit union representative before attempting to cash or deposit these checks.

Credit union representatives are available 5-days a week to discuss any check concerns you may have.

* "Check" refers to any form of check including Travelers, Cashiers, or Certified checks and postal Money Orders

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Loan Advance Scams on the Rise
The Federal Deposit Insurance Corporation (FDIC) is reminding consumers and financial institutions to be aware of advance fee loan scams. The FDIC has observed a significant increase in the number of unsolicited e-mails ("spam") advertising mortgage refinancing, debt consolidation and elimination, small business loans, and special loan programs for veterans and minorities. While some of these e-mails may advertise legitimate loan programs and lenders, advance fee loan scams are becoming more prevalent.

Advance fee loan scams prey on consumers who may be under financial duress and may be seeking quick and easy loan approval and funding. The scam typically involves the lender making false promises to arrange for a loan in return for fees paid upfront by the loan applicant. Scam artists may even design Web sites and online loan applications giving the appearance that the company is legitimate.

Fraudulent logos and letterhead of legitimate financial institutions or government agencies may also appear on documents that are faxed to the loan applicant. Potential borrowers may be asked to provide information through a Web site or be contacted by phone or e-mail by a "representative" who guarantees loan approval as soon as the borrower pays a required fee. The loan applicant may be told that the fees will be used to pay a third party for loan insurance or application processing, or to make the first month's loan payment. The loan applicant may also be told to send or wire transfer money to an individual overseas before receiving the loan proceeds.

In some cases, the loan applicant has been falsely directed to a legitimate financial institution with no knowledge of the transaction. In other cases, the loan applicant is told that the loan request was declined and is asked to forward additional money to qualify for a different loan program.

The following are warning signs that may indicate a loan offer is not legitimate:

The loan approval is "guaranteed." Lenders do not typically guarantee loans before analyzing the applicant's financial condition, credit history and ability to repay.
The loan applicant is required to pay upfront fees to a third party or individual. Loan fees are normally paid to a business after the loan has been approved.
The lender or loan processor may be located outside of the United States.
Fees are requested using a retail wire transfer system. A password is sometimes used by the overseas receiver to pick up the funds in an attempt to hide the true identity of the criminals and make funds more difficult to trace.

Victims of online advance loan fee scams should report the crimes to the Internet Crime Complaint Center at http://www.ic3.gov/. More information about fraudulent advance loan fee scams can be found at http://www.ftc.gov/bcp/conline/pubs/tmarkg/loans.shtm.

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