Scams

Recent Phishing Attempt Using NCUA Information

The NCUA has just released a Fraud Alert regarding a phishing scheme where
the emails purport to come from the NCUA requesting the consumers' credit
card information. Here is a link to that NCUA Fraud Alert.
http://www.ncua.gov/news/express/xfiles/08-FRAUD-03.pdf
(Posted 2-22-08)

The New Jersey Credit Union League has been alerted that a new large dollar, highly sophisticated, highly organized fraud has been attempted or perpetrated in recent days against New Jersey credit unions (as well as credit unions in other states).

The Fraud

This fraud involves telephone, fax, or email requests made by the fraudster to the credit union for large dollar advances on Home Equity Lines of Credit (HELOCs). The fraudster then request that the HELOC funds be wired transferred, often to a foreign country. What makes this fraud even more unique is that the fraudsters have extensive personal information about the members such as, information to answer many authentication or challenge questions, transaction history, and account information. There is speculation but no firm accounts of where this personal information is being obtained or where the fraudsters are getting HELOC balance information. The fraudsters also are aware of and have found ways to circumvent the credit unions' "call back" procedures, which are used to verify the identity on non in-person request for wire transfers. The fraudsters may have either requested phone line forwarding from the phone company, or have more than 30 days prior to the HELOC advance request called the credit union to change the member's phone number. Thus, when the credit union calls back the phone number its has on file for the member the calls go directly to the fraudster.

What Your Credit Union Should Do

1. Inform staff of this scam, especially those that process request for HELOC loan advances and wire transfers;
2. Rigorously scrutinize large dollar request for HELOC advances made over the phone, fax, or email;
3. Rigorously scrutinize request to wire transfer of HELOC advances, especially if the transfer is to foreign countries;
4. Review change of phone number or address requests made on accounts that are requesting HELOC advances by phone, fax or email;
5. Review on large dollar request for HELOC advances to see if this is the type of activity generally performed by the member and further scrutinize out-of-the-ordinary transactions; and
6. Alert call center and member service employees to be wary of persons calling to request information that is not otherwise publicly available.

The League will continue to track developments as it relates to this scam and provide credit unions with information as we become aware it. If you have information about this scam that you think would be useful to help protect other credit unions please, contact the League.

For those bonded by CUNA Mutual, the League has been informed that CUNA Mutual has a Risk Alert in the works on this issue and it will be coming shortly. (Posted 1-3-08)

Phishing scam plagues Arizona League

Recently, the Arizona Credit Union System (ACUS) was the target of a phishing scam.  The email sent out appears to be a communication from the ACUS misleading members of state credit unions into thinking that their savings accounts have been stolen.  It asks the members to click a link, provide information and help in developing a new security system.

If you or any of your members receive this information, please do not follow the link and do not provide any personal information. (Posted 4-26-07)

Fake Checks Bear Teachers Credit Union Info

Some NJ Credit Unions have been presented with an ongoing series of fraudulent checks passed around in various cities in PA. They use the ABA number for Hoboken School Federal Employees CU and sometimes also use the name of Greensburg Teachers Credit Union. Authorities have been notified. (Posted 1-12-07)

Sweepstakes Fraud Targets CU Membership Lists

Many credit union members have reported receiving a letter and check in the mail for winning a sweepstakes/lottery. The letter may explain qualified winners were randomly selected from Readers Digest, Publishers’ Clearing House or various other known and unknown companies. The letters provide a name and a phone number to contact to activate your account. These people are involved in the cscam and may also try to steal your ID and banking info. The checks ranged from $2K to $6K. The winners are asked to cash or deposit the checks and then send the money to the sweepstakes/lotter processor so the final cash settlement can be sent. These checks are frauds and are all drawn off different financial institutions. The envelopes seem to originate out of Canada. If any of these checks present at your credit union, please follow your credit union’s fraud procedure and notify the proper authorities. (Posted 1-10-07)

Potential Fraud Occurring in
South Jersey

Fraudulent Check

A fraudulent check was received by Fort Billings FCU on December 11. Please beware, the following is the information that was on the fraudulent check:

On top of check:     
OFFICIAL/CASHIER’S CHECK, BRIGHT STAR CREDIT UNION , PO BOX 8966, FORT LAUDERDALE, FL 33310-8966  (866)-298-7891

This is a counterfeit check. If you receive any similar counterfeit checks, the NJCUL recommends you follow your credit union’s procedures and report the frauds to law enforcement. (Posted 12-19-06)

CounterFeit Share Drafts

Elizabeth Fireman’s FCU received a fake check with an address of  New Castle, DE 19720. The CU address is also incorrect and reflects an old, outdated address. If you receive these checks or have any questions about the check, please contact Elizabeth Fireman’s FCU for verification. If you receive any fraudulent check, you should follow your credit union’s procedures and contact law enforcement. (Posted 12-19-06)

SCAM ALERT: The email circulating about First Atlantic Federal Credit Union offering $100 to those who complete an online survey is a scam. Please do not access the linked site and never provide personal or confidential information to anyone without first checking the validity of the requestor.
(Posted 12-1-06)

Missing Checks

Salem County School Employees Federal Credit Union experienced a loss of checks numbered 37001 to 39999. The checks are real, but if anyone receives one of these checks, it is not a legitimate or authorized use of them. Holds have been placed on each check. The checks have the credit union’s name and address: Salem County School Employees Federal Credit Union, 31 East Avenue, PO Box 111, Woodstown, NJ 08098-0111 and the pay through of Empire Corporate FCU. If you receive a check from this credit union, please call Michael Lopes at 856769-3452 to verify validity or to report the misuse.
(Posted 8-11-06)

Fraudulent Checks

Teaneck Federal Credit Union has received several “fake” Cashier’s checks supposedly coming from their credit union. If you receive a Cashier’s check that appears to be from the Teaneck Federal Credit Union, please call them to verify before providing the funds. They can be reached at 201.837.1316. (Posted 7-18-06)

FDIC Fraudulent Cashier's Check Alert  http://www.fdic.gov/news/news/SpecialAlert/2006/sa06187.html
(Posted 7-7-06)

Bad Checks Alert

We were recently advised by Monmouth County Postal Employees Federal Credit Union that several “bad” checks bearing their name were passed to high end retailers. The Credit Union wants to be clear that on “real” checks issued by their organization, their name is NEVER abbreviated in any way, nor do they use a PO Box for their address. Please share this information with your staff, just incase the checks appear in your credit union.  If you have any questions or receive any of these questionable checks, please contact the credit union at 732.219.0009. (Posted 6-13-06)

Federal CreditUnion Fraud Alert

This phishing scam email was received by a member at a NJ credit union. It is fake. Please direct your members not to respond to any of these types of inquiries.

 ----- Original Message -----

From: Credit Union Administration

Sent: Sunday, May 07, 2006 4:28 AM

Subject: (FEDERAL) Credit Union Update IMPORTANT

As part of our security measures, we regularly screen activity in the Federal Credit Union system. We recently contacted you after noticing an issue on your account.We requested information from you for the following reason:
Our system requires further account verification.
Case ID-Number: Federal Credit Union-036-93-415
This is the final reminder to log in to Federal Credit Union imediatly.

To get started, click the link below:
http://www.govncua.com/signin/update.htm

Be sure to log in securely by accesing this link. Once you log in, you will be provided with steps to restore your account access. We appreciate your understanding as we work to ensure account safety.

The National Credit Union Administration (NCUA) is the independent federal agency that charters and supervises federal credit unions. NCUA, backed of the full faith and credit of the U.S. government, operates the National Credit Union Share Insurance Fund (NCUSIF) insuring the savings of 80 million account holders in all federal credit unions and many state-chartered credit unions. During the 1990s and into the 21st century, credit unions have been healthy and growing. Credit union failures remain low and the Share Insurance Fund maintains a healthy equity level. The National Credit Union Administration (NCUA) is comitted to maintain a safe environment for over 80 million account holders in all federal credit unions and many state-chartered credit unions. Protecting the security of holders account and of the Federal Credit Unions (FCU) network is our primary concern.
Please don't reply to this email. This e-mail was generated by a mail handling system.

Thank you,
Federal Credit Union Support Service. (Posted 5-18-06)

Alleged Scam Artists Preying On Credit Unions

Jersey Shore FCU and North Jersey FCU report recent scams at their credit unions involving new member fraudulent check deposits and cash withdrawals.

Representatives from three New Jersey General Contracting Companies using the names: Shore Construction Company, Mid-Atlantic Contracting, and AARCO Roofing, are opening accounts at credit unions, depositing fraudulent checks and withdrawing cash.

Losses so far exceed $14,000 at both credit unions. In both credit unions, check-hold policies were not followed by front-line staff and/or Member Service Representatives. All credit unions are reminded to make sure their staff is aware of credit union policy regarding check-hold limits.

Jersey Shore FCU collector, Bruce Matus, advised that prosecution has been initiated against all three company representatives. For more information, you may contact Bruce at 609-646-3339 ext 124. (Posted 5-2-06)

NCUA Database Update Scam

Many credit union members have recently received an email suggesting it originated at NCUA, requesting they follow a link for a database update. This is a scam and is not a real request. For more information about scams using NCUA’s name or logo, please visit their Web site at: www.ncua.gov
(Posted 3-22-06)

Fraudulent Accounts

Monmouth County Postal Employees Credit Union received two fraudulent checks recently, both from “account holders” in Newark, DE. The “account holders” appear to have accounts at Monmouth County Postal Employees Credit Union but do not.

Please be aware of the potential fraud and notify the appropriate authorities if you should receive checks of this nature. You may also contact Monmouth County Postal Employees Credit Union at 732.219.0009 if you suspect a bad check. (Posted 3-9-06)

The Jury Duty Scam

The scammer calls claiming to work for the local court and claims you've failed to report for jury duty. He tells you that a warrant has been issued for your arrest.

The victim will often rightly claim they never received the jury duty notification. The scammer then asks the victim for confidential information for "verification" purposes.

Specifically, the scammer asks for the victim's Social Security number, birth date, and sometimes even for credit card numbers and other private information — exactly what the scammer needs to commit identity theft.

So far, this jury duty scam has been reported in Michigan, Ohio, Texas, Arizona, Illinois, Pennsylvania, Minnesota, Oregon and Washington state.

It's easy to see why this works. The victim is clearly caught off guard, and is understandably upset at the prospect of a warrant being issued for his or her arrest. So, the victim is much less likely to be vigilant about protecting their confidential information.

In reality, court workers will never call you to ask for social security numbers and other private information. In fact, most courts follow up via snail mail and rarely, if ever, call prospective jurors.

Action: Never give out your Social Security number, credit card numbers or other personal confidential information when you receive a telephone call.

This jury duty scam is the latest in a series of identity theft scams where scammers use the phone to try to get people to reveal their Social Security number, credit card numbers or other personal confidential information.

It doesn't matter *why* they are calling — all the reasons are just different variants of the same scam. (Posted 1-11-06)

WARNING...New Credit Card Scam.

Note: The callers do not ask for your card number; they already have it.

This information is worth reading. By understanding how the VISA & Master Card Telephone Credit Card Scam works, you'll be better prepared to protect yourself. One of our employees was called on Wednesday from "VISA", and I was called on Thursday from "Master Card".

The scam works like this:

Person calling says, "This is (name), and I'm calling from the Security and Fraud Department at VISA. My Badge number is 12460. Your card has been flagged for an unusual purchase pattern, and I'm calling to verify.

This would be on your VISA card which was issued by (name of bank). Did you purchase an Anti Telemarketing Device for $497.99 from a Marketing company based in Arizona?"

When you say "No", the caller continues with, "Then we will be issuing a credit to your account. This is a company we have been watching and the charges range from $297 to $497, just under the $500 purchase pattern that flags most cards. Before your next statement, the credit will be sent to (gives you your address), is that correct?" "You say yes".

The caller continues - "I will be starting a Fraud investigation. If you have any questions, you should call the 1- 800 number listed on the back of your card (1-800-VISA) and ask for Security. You will need to refer to this Control Number. The caller then gives you a 6 digit number. "Do you need me to read it again?"

Here's the IMPORTANT part on how the scam works. The caller then says, "I need to verify that you are actually in possession of your card".

He'll ask you to "turn your card over and look for some numbers". There are 7 numbers; the first 4 are part of your card number, the next 3 are the security Numbers' that verify you are the possessor of the card.

These are the numbers you sometimes use to make Internet purchases to prove you have the card. The caller will ask you to read the 3 numbers to him.

After you tell the caller the 3 numbers, he'll say, "That is correct, I just needed to verify that the card has not been lost or stolen, and that you still have your card. Do you have any other questions?"

After you say No, the caller then thanks you and states, "Don't hesitate to call back if you do", and hangs up.

You actually say very little, and they never ask for your Card number.

But after we were called on Wednesday, we called back within 20 minutes to ask a question. Are we glad we did! The actual VISA Security Department told us it was a scam and in the last 15 minutes a new purchase of $497.99 was charged to our card

Long story made short - we made a real fraud report and closed the VISA account. VISA is reissuing us a new number.

What the scammers want is the 3 digit PIN number on the back of the card. Don't give it to them. Instead, tell them you'll call VISA or Master card directly for verification of their conversation.

VISA told us that they will never ask for anything on the card as they already know the information since they issued the card!

If you give the scammers your 3 Digit PIN Number, you think you're receiving a credit. However, by the time you get your statement you'll see charges for purchases you didn't make, and by then it's almost too late and/or more difficult to actually file a fraud report.

What makes this more remarkable is that on Thursday, I got a call from a “Jason Richardson of Master Card" with a word-for-word repeat of the VISA scam. This time I didn't let him finish. I hung up! We filed a police report, as instructed by VISA. The police said they are taking several of these reports daily!

They also urged us to tell everybody we know that this scam is happening.
Please pass this on to all your family and friends. By informing each other, we protect each other. (Posted 1-11-06)

If you have a scam or alert to report, please send the information, along with your contact information to info@njcul.org.