Nothing is more important than the security of your assets and personal information. We’ve compiled resources to help you learn more about common scams, identify legitimate fraud alerts and prevent identity theft.
Report a Lost or Stolen Debit Card after hours
Common types of fraud and scams
Identity theft occurs when your personal information is stolen and used to commit fraud, such as making unauthorized transactions or purchases or stealing a person’s funds. Unfortunately, it isn’t always obvious when identity theft takes place, and the damage can be irreparable. A number of scams involve identity theft, so you should always be alert when you’re asked to provide personal information.
For more information regarding identity theft, visit our blog "Identity theft: what you need to know."
- P2P Fraud
Preventing P2P Fraud Pitfalls
Education is critical in the ongoing fight against P2P fraud. The NCUA has provided some useful tips to keep money safe when using P2P apps:
Ask yourself if using a P2P payment app makes sense for your transaction. Use P2P payment apps only with people you know and trust, if possible. You should never have to transfer money to receive money from an app. If you are asked to do that, it’s a scam.
Always double-check the recipient’s information to make sure you’re sending money to the right person, even if it is someone you know. A good practice is to have the intended recipient send you a request before you send the money.
Familiarize yourself with the fraud protection policies of the P2P payment app that you are using and understand whether and how you can recover funds if a problem arises.
If your P2P app is linked to a checking account as a source of funds, consider linking instead to a credit card. A credit card provides added protection if you don’t receive the goods or services you purchased.
Protect your payment app and log in with the strongest authentication available, like Face ID or Touch ID, two-factor authentication, a strong password, or a PIN. Turn off automatic login settings and set up notifications for all payment transactions.
Never provide sensitive account information to someone on the phone or via links in an email. Legitimate customer service representatives will not ask for this information. If someone contacts you requesting this information, contact customer service directly to confirm. Scammers can spoof emails and phone numbers.
- Brute-Force Attacks
A brute-force attack occurs when fraudsters use trial and error to try to get card numbers, working through all possible combinations hoping to guess correctly. With this type of fraud, we encourage our members to watch your transactions closely and be sure to alert us if you notice any suspicious activity.
- Phishing Scams
Phishing scams are a type of cybercrime in which criminals send fraudulent emails or texts, or create fake websites, in an attempt to trick individuals into revealing sensitive information such as login credentials, credit card information, account numbers, or personal identification numbers (PINs). In voice phishing—or “vishing”—scams, callers impersonate legitimate companies to steal money and personal and financial information.
Similar to many other types of scams, urgent or threatening language is commonly used during phishing attempts, or communications may appear to come from a legitimate source, such as a financial institution, in order to pressure people into revealing their information. You can protect yourself from phishing attacks by never providing personal information in response to unsolicited request. Additionally, be sure to never click links or download attachments from unknown sources. If you believe you have received a phishing communication, please do not respond to it and report it to your financial institution immediately.
- Unemployment and Tax-related Scams
Identity thieves are exploiting the pandemic by committing unemployment benefits fraud, making it the number one type of identity theft issue being reported. Unemployment fraud is when imposters file claims for unemployment benefits using the names and personal information of people who have not filed claims. Simple to attempt and difficult to detect, this type of fraud is so rampant that many states are struggling to separate fraudulent claims from legitimate ones. Similarly, tax-related identity theft occurs when someone uses your stolen personal information, including your Social Security Number, to file a tax return claiming your refund.
- Covid-19-related Scams
Times of disaster and crisis present an opportunity for scammers to try to take advantage of consumers. It’s also very common for scammers to change their methods. Current coronavirus scams include:
- Testing/Vaccine/Treatment – Don’t trust any offers that mention a treatment for the virus or early registration to receive the vaccine. You can’t pay to put your name on a list or get early access to the vaccine. Beware of alternative products – treatments, medicines, etc. being used to treat the virus. Learn more about avoiding vaccine scams.
- Charities –Fake charities always pop up during disasters, and sometimes scammers pose as representatives from legit charities. Learn how to avoid charity scams.
- Stimulus Checks – Scammers are posing as representatives from the IRS and asking for personal information or are pretending to charge people fees for their stimulus checks. Don’t give out your personal information or sign up to receive the check early. Anyone enticing you to do this is a scammer.
- Telemarketing Scams
Scammers call you on the phone and seem very friendly, using your name, making small talk and asking about your family. They sometimes claim they work for a company you know and trust, but they’re just impersonating a representative of that company to cheat you out of money. Unless you initiate the phone call, never give out personal information over the phone even if the caller asks you to confirm your information – it’s a trick. If an offer sounds too good to be true, then it probably is.
- Romance Scams
Scammers take advantage of people looking for a romantic relationship, often through dating websites, apps or social media by pretending to be prospective companions. They play on a person’s emotions to get them to provide money, gifts or personal financial information. This one happens over periods of weeks or months to build up trust with the victim. Be wary of requests for money especially if this situation happens to you.
Learn more about romance scams.
- Lottery/Sweepstakes Scams
Lottery or sweepstakes scammers contact you congratulating you for winning a contest. You’ll then likely be asked to pay a fee to claim your prize. The scammers may ask for your bank account information or ask you to wire them money. Keep in mind that you can’t win a lottery or sweepstakes that you didn’t enter and you should never have to send an upfront payment for receiving a prize.
Learn more about prize scams.
- Banking Scams
Banking scams are as simple as they sound; they involve scammers trying to get access to your bank account. A few common banking scams include overpayment scams, unsolicited check fraud and automatic withdrawals. To protect yourself don’t give out any personal or bank information and don’t deposit checks or money orders unless you know the source is legit.
Here's how we alert you about potential debit card fraud
Phishing schemes and other types of fraud try to deceive you into thinking you're talking to a legitimate institution such as a retailer, bank or other trusted organization. In reality, when you fall victim to these scams, you're giving your information to thieves. Taking this into consideration, it's important to know how Cobalt communicates with you when there's potential fraud on your accounts.
If we see suspicious activity on your debit card you'll be notified in the following ways:
Automated Phone Call
When a transaction is detected by Fiserv EFT, our debit card processor, that seems unusual, Fiserv will call you and ask you to verify if you initiated the transaction. We recommend saving this number in your contacts.
Text and Email Notifications
Cobalt also offers free text and email alerts to our debit card holders. The text alerts will come from 37268 (not a 10 digit phone number). Text ‘YES’ or ‘NO’ to confirm, or deny, authorization of the purchase. We will never ask you to give details about your debit card or transaction purchases.
Members are automatically enrolled in this program, and we will use the phone number we have on file for you. Text messaging will follow the Telephone Consumer Protection Act (TCPA), which allows text messages to only be sent between 8:00 a.m. and 9:00 p.m. If the alert is generated outside of these hours, only an email will be sent. If you do not have an email address, you will still receive a phone call. If you would prefer to receive phone calls, instead of texts, for future alerts, you can text STOP to 37268.
Safeguard yourself from fraudulent activity, especially text messages that are from an unknown source. Cobalt does not use text messages to handle security questions regarding your account. If you receive a text message and are unsure of its validity, call us directly at 800.228.0392, chat with us via Video Banking or visit any one of our 26 branches to speak to a representative.
Protect your Cobalt debit card with Mastercard ID Theft Protection. This program is always available at no additional cost to Mastercard holders.
Additional fraud resources:
The above scams are only a few of the most prevalent happening in the world today. To learn more about additional popular sources of fraud, visit the resources below.
The mobile application that allows you to control the use and expense limits of your debit card while traveling. Protect your debit cards through your mobile device by receiving alerts and defining when, where and how your payment cards are used.