HOW TO AVOID BEING SCAMMED
Peoples Bank of Alabama is passionate about helping people avoid becoming a victim of fraud. Becoming familiar with common scams that are currently out there just might be the key to helping you recognize what’s really happening.
COMMON SCAMS
Romance or Fake Scam Red Flags: Someone contacts you on social media — and they’re interested in getting to know you. Or maybe you meet someone special on a dating website or mobile app. Soon the person wants to write to you directly or start talking on the phone. They say it’s true love, but they live and work far away or they say they are in the military.
Then they start asking for money for a plan ticket to visit you or they have another urgent need.
Tip: You are urged to act quickly. If you suspect a scam, don’t send money, don’t send gift cards and stop communicating immediately.
Investment Fraud: Investment scams often start with a direct message or contact through social media platforms, including dating apps. The person claims they’ve made lots of money through investments, including cryptocurrency and they’re willing to show you how. They’ll direct you to a site or app to invest, but the company taking your money isn’t really investing it — and the company isn’t real. You’ll see fake reports showing how much your money is growing, and scammers will urge you to invest more. But once you’ve given them money, they’ll shut down the accounts and disappear without a trace.
Tip: No matter how trustworthy someone might seem, don’t make investment decisions based on the advice of anyone who makes unsolicited contact with you online or through an app or text message. Remember, if the investment sounds too good to be true, there is high risk of fraud. Verify the investment company is legitimate through the state’s securities regulator. Talk with your banker for more information.
Fake Job Offers: Many people would like to make money working from home. Scammers know this, so they place ads, often online, claiming that they have jobs where you can make thousands of dollars a month working from home with little time and effort. However, instead of making money, you end up paying for various items that are useless. You may also get caught up in a fake check scam, where you deposit a check from your new employer, the employer then asks you to send some money back, due to “overpayment,” but the check will ultimately bounce and the bank will want you to repay the full amount of the fake check - while the scammers keep the real money you sent them.
Tip: Beware if someone offers you a job and claims that you can make a lot of money in a short period of time with little work.
Email Compromise: Email compromise, also known as Email Account Compromise (EAC) or Business Email Compromise (BEC), is a type of cyberattack where criminals gain unauthorized access to someone's email account, often by using techniques like password cracking, malware or phishing. Phishing is the practice of sending fraudulent communications that appear to come from a legitimate and reputable source that trick you into clicking malicious links or open documents. Once inside, they can manipulate the account to steal information, send fraudulent emails, or even make financial transfers.
Tip: Don’t click on anything in an unsolicited email or text message. Look up the company’s phone number on your own (don’t use the one a potential scammer is providing), and call the company to ask if the request is legitimate. Carefully examine the email address, URL, and spelling used in any correspondence. Scammers use slight differences to trick your eye and gain your trust. Be careful what you download. ALWAYS verify the legitimacy of any email request, especially those involving financial transactions or sensitive information, by contacting the sender directly through a trusted, established channel like a phone number (not the one provided in the email).
Don’t Become a Money Mule: Money mules are people who receive and move money obtained from victims of fraud. Often, scammers will approach you online, but they may also call you directly.
When criminals obtain money illegally, they need to hide or launder the source of the funds. One method they use is to look for people to transfer that money for them.
If someone sends you money and asks you to send some or all of it to someone else, you could be a money mule. Regardless of the particular method, the goal is the same—to use consumers to move money so that law enforcement cannot easily track it.
If someone asks to use your bank account or asks you to open a bank account in your name to send and receive money on their behalf or business, don’t do it! Even if they offer to pay you some cash for your trouble, it’s not worth it. You may not only be risking your financial assets and identity, but your actions could be criminal.
Tip: Never respond to an offer to earn quick or easy money. Never agree to receive and send money on behalf of others.