Fraud Center

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:

1. Question

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.

2. Verify

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.

3. Review

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.

4. Reconsider

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.

5. Protect

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.

6. Contact

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.

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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.

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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.

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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.

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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. 

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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.

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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.

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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.

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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.

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