Don't Get Scammed: How to Prevent Financial Fraud

Episode 45: Pocket Change Podcast

Summary

Key Takeaways

Listen and Follow

Full Transcript

Shea:

Hey, this is Shea.

Carrie:

And this is Carrie.

Shea:

Welcome to the Pocket Change podcast, where you'll learn better ways to spend, save, and invest, and take control of your financial journey. Hey, Carrie, what's your online banking login?

Carrie:

What?

Shea:

What's your PIN number? What about social, blood type, mother's maiden name?

Carrie:

I'm not giving you that information.

Shea:

Well, that's a good thing because those are common questions a fraudster may ask you, and we want to not give that information out.

Carrie:

That's right, and today we're talking to a specialist who knows all about how to prevent fraud. Can't wait to talk to her. We're excited to welcome our guest today, Rebecca Scheidecker, Risk Management Specialist here at Leaders. Welcome to Pocket Change, Rebecca.

Rebecca Scheidecker:

I'm happy to be here.

Carrie:

Well, good. We're excited, and so we're just going to go on and dive right in. Sounds great. So what is the number one way that fraudsters take our money?

Rebecca Scheidecker:

The number one way right now is they are working on impersonating people that you know, and that could be your bank, that could be your doctor's office, it can be a government agency, Social Security, the IRS. They are hitting you with people that you think are trusted individuals to yourself and finding a way to get you to compromise your information so they can use it for what they want. So they would look at sending you a text message, they could send you an email or even do the old-fashioned phone calls depending on who their target audience is, and they're working at making that the way they get you to give them information.

Shea:

I think you're right. It's all those different avenues, not just the phone call, but it could be a text message, an email from these supposed trusted entities. So, you've really got to be on guard for how, I guess, fraudsters have really expanded their ways of trying to get us out of our money.

Rebecca Scheidecker:

Yeah. Be cautious.

Shea:

Yeah.

Rebecca Scheidecker:

Be aware. I mean, it's called spoofing. So they can pretend their phone number is your phone number. They can make it look like the calls coming from a certain individual. Be prepared. If you're not expecting a text, you're not expecting a phone call, don't trust it. If it's got a link inside of it, if it's got a link in a text, if it's got a link in an email, don't click it. Call whoever it is that you are thinking is contacting you and talk to them directly to see what's going on. Don't trust what you're getting. Because that's what the fraudsters are waiting for you to do is give them access.

Shea:

That's right, and I think you mentioned about text messages. We see a lot of that. You'll get a text on your phone and says, this is the postal service or Amazon. So Tell us about an example of some of these texts that people get that are really actually fraudulent.

Rebecca Scheidecker:

I got two in the last two weeks, and I haven't had any in forever. So basically, my post office package was caught up, and they really needed to verify my address information, so they provided me a link. I didn't click it because I don't click links, but I know people that have clicked the link. What it is, it's this page, and they get you to fill out all of your information, so your address, your phone number, your email. You're thinking about all of those things that they have just captured from you. It sounds like basic information, but you're giving it away, and they've got it all there. Then they're going to dive for additional information. "Well, we can get this to you faster if you provide us your debit card information," or things like that. So they're going to try and get you to give out more of your data. They may even press for your date of birth or your social security and think about who's asking you for that information. You don't just give those details to anybody, and if somebody's asking for them, stop and think about it a little bit because you want to know why. What do they need that information for?

Shea:

I've never had to give my social or a birthday to get a package or to purchase something and get it sent to me.

Rebecca Scheidecker:

I also got a text message from my financial institution that my account had been compromised for $2,000, only when I paused and I looked at the text again, it's not my financial institution that's listed at the top of it. It was some other random bank. They're sending it out under the guise that it's somebody and then hoping that they hit a person that has that institution that will hit that panic level of, "Oh, no, something's been compromised." One of the things that they're doing when they are getting you via the text messages and they're spoofing to be your financial institution, one of the biggest things that you need to be mindful of is that they're going to ask you for key information. They want access to your online banking. They want access to your PIN number. If they're asking you, "What is your username on your online banking? What is that password?" Why do they need access to that? Online banking with your financial institution is yours and yours alone. No one needs it for any reason, and that pin number, if they're pretending to say you have fraud on your debit card and we're going to send you a new debit card in the mail, let's go ahead and set that pin number.

Rebecca Scheidecker:

They've already gotten you to verify the whole debit card number, but now they're going to have you set that pin. "By the way, that pin can be the same pin that you've already used. Go ahead and key that into your phone." So now what do they have? You verified the entire card number and you gave them your pin number, and they can just transact away. Sometimes they're making generic cards that have that information, and they're using for real, and sometimes they're using those online. So do be very careful about the information you're providing, especially PIN codes and passwords. Those are yours and yours only. No one needs them. We'll never ask you for them.

Carrie:

You just really can't be too cautious. And it doesn't hurt to just ask questions back if you're not sure, which is really scary how easily they can access our information. So what would you give advice as far as the number one tip to avoid falling for these scams?

Rebecca Scheidecker:

All of them involve a sense of urgency, or they're calling you to act and do something immediately in a response. So they're usually telling you something's wrong, there's an error that needs to be corrected. So I encourage everybody, I say, Stop, think about it, and then decide what action you're going to take, and what they're asking you to do, does it make sense? And should I provide this information to somebody? So always stop, slow down, and think about what's being asked of you, because if you give it a little bit of time. I could have panicked because I saw $2,000, but then I stopped and looked at it again and went, "That's not my bank." I've gotten phone calls like that before, too.

Shea:

So stop.

Carrie:

So just pause.

Shea:

Yeah, stop, slow down and think. I think those are great tips, and then also, we've talked about spoofing and these text message scams, but what are some other common scams that you see?

Rebecca Scheidecker:

One of the most common types of fraud that we're seeing right now is the work from home scam. They're targeting a population of people that is really desperately seeking employment. They're trying to find other ways to be able to work and take care of their family, and they're approaching it from the avenue of work from home. What they're saying they're going to do is they're going to send you a check. "I'm going to send you $2,000, and I need you to go buy your computer. I need you to go buy whatever materials that you need, and then you're just going to send us back the difference," and it's just unusual to stop and think about it. Is somebody just going to randomly send you a bunch of money and then hope you're going to send it back to them? That's not how they would work. A real employer would purchase what you need, and they would give you the materials that you need to have on hand in order to do your job for them.

Shea:

You got to do your work before you get your paycheck.

Rebecca Scheidecker:

Exactly, and if they're offering to send you some money, like, "We're going to send you $500. I need to make sure that you're going to be a trustworthy employee, and I need you to send that $500 back to me." Usually, they're giving that money to you in a check, and what they're going to hope is happening, is you're going to put that check in your bank account, and you're going to go ahead and send them digitally that $500. So you're going to use some a digital money transfer platform, and hopefully you've sent it to them before that check returns, and then that check is going to come back and it's going to hit your account, and you're going to be out that $500. You're now going to be in the negative, and they put that responsibility on you. Another super popular type of fraud that they're doing right now is loan scams. So, be careful how you Google. When you're searching and you're looking up information, make sure that you're checking, not clicking that sponsored ad that's immediately at the top. Read the website address that is on the top, and that the site that you're going to is really who you're trying to get to.

Rebecca Scheidecker:

And so when you're looking to get that loan, and especially with a loan, because you are giving out your personal information, you are giving that social, you are giving that date of birth, stuff that people need to compromise your identity later. That's what they're trying to do there, is they're compromising it so they can open fraudulent accounts in your name. They can open loans in your name on the other end, and then they do that same scenario where they're going to send you a check. If you send that back, then they'll send you your loan amount. So they're doing the same scam in the same scenario. They're going to send you that check nine times out of ten via email, and that's not a valid check. You can't cash a check that somebody has emailed to you. It's not valid tender. Then the other one is they're going to send it to you in a package overnighted in the mail, and those are probably local people that they have deliver in those. Those packages are not really coming via the post office or UPS or FedEx. They're not really sending them to you that way, but it gets delivered, and they're hoping you're going to do the same thing with that check.

Rebecca Scheidecker:

They get real specific about how you need to deposit items that they give you. So if they're telling you what to do with your money, there's a problem there as well. So pause.

Carrie:

That's great information. That's a new one. I had never heard of the loan scams, so that's great information for us to be aware of. So what would you say are some of the most common misconceptions of fraud?

Rebecca Scheidecker:

That it only happens to the elderly. It does happen to the elderly, and we do need to educate them, but one of the larger groups that's getting hit right now, I'd say, is the 25 and under crowd, because they're hitting them on social media. Social media is not something that you think about every day, but there is a ton of fraud going on out there. TikTok and Instagram is that 25 and under crowd, and they're hitting them with, "Hey, Carrie, I love your picture. I have somebody that would really like to draw a copy of that so they can hang it up in their office. They want to go ahead and pay you for that. Can we pay you to use your photo? I'm going to go ahead and send you that check," and then when you get the check in the mail, they are sending a real check for that or as an email check, but when you get that check, they're going to say, "Oh, they accidentally sent you my portion, too. So I'm going to need you to go ahead and deposit it this way," usually, mobile deposit is what they're telling you to do,

Rebecca Scheidecker:

"but I need you to deposit that, and then go ahead and send me my portion." So of the whatever dollar amount they decided, $1,000, $2,000, whatever it was going to be, "Send me my portion now, and then the rest is yours to keep." Same scenario. They want you to put it in your bank. They want it to go through. Then you've sent money before you realize that check's going to return, and that check's going to return, and you're now going to be in the negative and on the hook for the full dollar amount.

Shea:

Wow.

Rebecca Scheidecker:

Kind of scary.

Carrie:

That's a new one for me, too. I've never heard of that one.

Rebecca Scheidecker:

Yeah, and it's because under 25, they just don't deal in checks. So they're hitting them in an area of financial unawareness, and it's just they deal in digital payments and digital only. So that's a different world for them. So they don't think twice when somebody emails them a check.

Carrie:

That's unfortunate.

Shea:

I think maybe some other common misconceptions are the ways that it happens with use of technology, and like you said, social media and the texting, email and calling. It's not just one avenue. It's all the avenues that fraudsters are really becoming more aware and more sneaky, if you will, to try and get our money using all the platforms we use, maybe normally, but obviously not using it for good. So it's everywhere. So we want to be able to prevent We want to be ahead of the fraud. So what are some things we can do to prevent fraud?

Rebecca Scheidecker:

A lot of companies, leaders included, offer ways for you to receive notifications. So I know with most financial institutions, you can go into your online banking and you can set up notifications. "Tell me if I have a transaction over said dollar amount," or if something's coming in or going out of your account, but also we offer a card control app here at Leaders, which lets you track your debit card and your credit card and get instant notifications every time your card is slid. I love that. So if somebody walks off at a restaurant with my card, I know exactly when they slid it and how much they slid it for. If something isn't right, then I have the option to turn that card off immediately to prevent additional fraud from occurring. As soon as you can report it to the bank, your financial institution, whoever it is, and let them know you've got some fraud that's occurring. Totally make sure that you're utilizing everything that your financial institutions or your doctor's office, if they send you a notification that says, "Hey, your email was changed," or, "Your address has been updated," and that's not you, those are things that you want to react to, but not necessarily in the avenue it was sent to you. If that came to you via text or email, don't reply that way, call the doctor's office, call your financial institution and say, "Hey, I got this weird text. Is this valid?" They can verify for you what's going on, and then you verify whatever you need to verify. If you don't know for sure that that's who it's coming from.

Shea:

Yeah, Rebecca, those text alerts are very helpful because that's how I was able to catch fraud one time when I got a text that my debit card was used. It was swiped somewhere, and it wasn't me. It was a different part of the state. So because of that, I was able to lock my card, contact my financial institution, Leaders, and get that taken care of so that it wouldn't be able to be used further. So very helpful to set up those alerts, those text alerts on your card, on your online banking for any transactions that you have. So, Rebecca, since this is a financial-related podcast, we're talking about how to keep people's money safe. What is some of the best financial advice you've ever been given?

Rebecca Scheidecker:

I had to think about this one a little bit, but I think back to my granny. Her and my grandfather used to do this thing in the summer that we would get to pocket the change. If we went anywhere and they bought us a piece of gum.

Shea:

Perfect for this podcast.

Rebecca Scheidecker:

It was. I know. It's cheesy. It's not on purpose, but if they bought us a pack of gum or something and we used a dollar, we used to get to keep that change. I would have a little jar that I kept it in over the summer or why I was at their house. Grandma always said, "You got to remember, you have to save for a rainy day. So whatever you've got in this jar, you have to keep a little bit of it." So I used to do that religiously as a small child. I was laughing. I used to buy savings bonds. I was super excited when I got the $25 built up or whatever it was that I needed to purchase it with. I had a ton of those. It worked out. It let me do some fun things as I got older, just those little bits of money that you put away.

Carrie:

That's right. That's a great advice, and since we're talking about pocket change, if you were to find some extra change in your pocket, what would you spend it on?

Rebecca Scheidecker:

Oh, that's my guilty vice. That is probably... It's a Sonic trip. I'm going to go get a tea.

Carrie:

So what is your drink of choice?

Rebecca Scheidecker:

Tea. Sweet tea.

Carrie:

Sweet tea? Okay.

Rebecca Scheidecker:

Just a plain old sweet tea because I don't get that every day. That's a rarity.

Carrie:

That's right. It's a treat.

Rebecca Scheidecker:

So it's when you find it or it's like a special occasion. Okay, I'll go get one.

Shea:

And if it's half-priced, then that takes even less pocket change.

Carrie:

That's right. It's even better. That's perfect. I'm with you on the Sonic drink. I love to go there as a special treat myself. Well, thanks, Rebecca, for joining us today. We are so happy to have you as a guest.

Rebecca Scheidecker:

Well, I'm excited to be here and spreading the knowledge about fraud. Just stop, slow down and think about what you're doing.

Shea:

I think for our guests or for our listeners, we want to make them aware they can visit leaderscu.com/fraud to learn more about fraud prevention, to take a quiz, to see how fraud-aware they are, and to learn more. So stop, slow down, and think, and visit us online at leaderscu.com/fraud to learn more.