Do you know the top 3 scams targeting credit union members right now? If not, you’re not alone, but knowledge is power when it comes to avoiding fraud.
Fraudsters are getting smarter, more convincing, and more tech-savvy. They're using AI tools, fake payment links, and even spoofed phone numbers to trick people into giving away personal information. More individuals and businesses are impacted by these evolving scams every day. Whether it’s through texts, emails, or social media messages, the goal is the same: steal your money, your identity, and your peace of mind.
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Here are the top 3 fraud schemes making the rounds right now, and what you can do to stay safe.
1. AI-Powered Phishing Scams
What is an AI-Powered Phishing Scam?
Phishing isn’t new, but now fraudsters are using artificial intelligence to make their attacks nearly impossible to spot. With AI, scammers can write perfect emails, mimic the tone of your financial institution, or even deepfake a voice to sound like a real person you know.
These scams often show up as:
- Texts claiming to be from your credit union asking you to verify a transaction
- Emails with realistic-looking invoices or “failed payment” alerts
- Links that lead to a fake login page designed to steal your passwords
Why Do People Fall for These Types of Scams?
AI helps scammers tailor messages to your online behavior and preferences. They may know your name, bank, recent purchases, or even the last four digits of an account. It feels personal, because it is.
Real-Life Example:
Ashley, a college student, got a text that looked like it came from her credit union. It said her debit card was locked and gave a link to “verify her account.” The site looked identical to her banking app, so she entered her login info. Within minutes, someone accessed her account, changed her password, and transferred $1,200.
The scammer used AI to create a realistic login page and spoof the sender ID to make it look like it came from a trusted source.
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How to Protect Yourself:
If you spot something unfamiliar, even a small charge, report it right away. Never click on suspicious links, even if they look official. Scammers often send fake emails or texts, known as “phishing," that appear to come from your bank, delivery services, or even the IRS. These messages can look convincing, but they’re designed to trick you into revealing sensitive information or installing malware. Look for red flags such as typos, urgent language like “Act now!”, or unfamiliar sender addresses. When in doubt, always go directly to the official website instead of clicking any links.
Never share your login credentials, debit card information, or passwords. No legitimate financial institution will ever ask for your full account number, debit card PIN, online banking password, or multi-factor authentication (MFA) code via text, email, or over the phone. Even if a message sounds urgent or threatening, hang up or delete it and contact your bank directly through a trusted phone number or their official website.
Use multi-factor authentication (MFA) on all accounts whenever possible. Enabling MFA adds a second layer of protection, such as a verification code sent to your phone, in case your password is compromised. Be sure to use this feature on your banking, email, and mobile phone accounts. As an added precaution, avoid using the same password across multiple accounts.
If you receive a suspicious message, call, or notification that doesn’t seem right, report it to Leaders Credit Union immediately. It’s always better to be safe and alert the institution to potential scams.
Finally, make it a habit to monitor your accounts regularly. Check your transactions frequently using online or mobile banking, and set up transaction alerts so you’re notified of any unusual activity in real time. If you notice something unfamiliar, even a small charge, report it right away. Acting quickly can prevent further fraud and keep your accounts secure.
2. Check Fraud & Payment Scams
What is Check Fraud?
Check fraud scammers are currently targeting older adults, new checking account holders, or small businesses. In many cases, victims receive a check for more than expected, then are told to send back the difference using a payment app or wire service.
Other tactics include:
- Fake “overpayment” scams for goods or services
- Checks stolen from the mail and altered to higher amounts
- Criminals posing as employers or service providers
Why Do People Fall for These Types of Scams?
Checks may clear initially, making it seem like the money is real, but once the check bounces, the consumer is left responsible for the missing funds.
Real-Life Example:
Marcus, a freelance photographer, sold a used camera on a resale site. The buyer sent a check for $200 more than the agreed price and asked Marcus to refund the extra using a payment app. Wanting to be helpful, Marcus sent the $200, only to find out days later that the original check bounced. He was out of both the camera and the money.
The scam was designed to take advantage of the delay in the check-clearing process.
How to Protect Yourself:
- Don’t accept checks from people you don’t know and trust.
- Avoid sending money to anyone who "overpays" and asks for a refund via Zelle, Venmo, or Cash App.
- Monitor your account regularly for unusual transactions.
- If something feels “off,” reach out to Leaders Credit Union before taking any action.
Social Media Impersonation Scams
What is a Social Media Impersonation Scam?
Social platforms have become a playground for fraud. Scammers create fake profiles impersonating businesses, celebrities, or even your friends and family. These accounts may:
- Promote fake giveaways or investment opportunities
- Ask you to “verify” your identity with a link
- Pretend to be your bank or credit union offering a “bonus”
Why Do People Fall for These Types of Scams?
People tend to trust messages from accounts that look familiar. And with so much of our time spent on social media, it’s easy to miss red flags, especially when urgency or emotion is involved.
Real-Life Example:
Tina received a message from what looked like her credit union’s Facebook page, saying she had won a $500 prize for being a loyal member. All she had to do was “verify her identity” by clicking a link and entering her account details. She didn’t think twice until strange charges started hitting her account. The page was a fake copy using stolen images and logos to appear official.
How to Protect Yourself:
- Be cautious of any social media message asking for personal info, even from a "friend."
- Don’t click on links that ask you to log in, confirm a payment, or send money.
- Always verify the account directly, go to the company’s official website, or contact them.
- Report suspicious profiles or posts immediately.
- Set up multi-factor authentication (MFA) on all accounts to add an extra layer of security.
What Should You Do if You Think You're a Victim?
Take action right away:
- Cease any communications with the potential scammer and check any connected accounts for suspicious activity.
- Contact Leaders Credit Union to flag your account and prevent further damage.
- Change your passwords, especially if you use the same one on multiple accounts.
- Enable alerts and monitoring tools to catch unusual activity early.
- File a report with the FTC or your local police if you lost money or suspect identity theft.
FAQs About Fraud and Scams
Q: How can I tell if a message is a phishing attempt?
A: Look for red flags like urgent language (“Act now!”), unfamiliar senders, or unexpected links. When in doubt, don’t click—visit the official website or app directly.
Q: Will my credit union ever ask for my password or multi-factor authentication code by text or email?
A: No. Leaders Credit Union and all legitimate financial institutions will never ask for login info, debit card numbers, PINs, or MFA codes via email, text, or social media.
Q: What should I do if I accidentally clicked a suspicious link or gave away personal info?
A: Immediately stop communication with the sender, contact Leaders Credit Union to secure your account, change your passwords, monitor your account for unusual activity, and report the scam to the FTC or local authorities.
Q: What is check fraud, and how can I avoid it?
A: Scammers may send fake checks for more than expected and ask for a refund. Avoid accepting checks from strangers and refunding money through apps.
Stay Informed, Stay Secure
Fraud is evolving, but so are the tools and knowledge to stop it. Whether it’s AI-enhanced phishing, payment fraud, or social media scams, the best defense is awareness.
Pro tip: Make sure your parents, teens, or anyone new to online banking knows about these risks, too. Scammers often go after the most vulnerable users. At Leaders Credit Union, we’re here to help you protect what matters: your money, your identity, and your peace of mind. Check out our Ultimate Fraud Prevention Help Kit to learn more and create a preparedness guide. Our team is always available to talk through suspicious activity, set up fraud alerts, or walk you through account protections.
Leaders Credit Union is federally insured by the NCUA.
