fraud and scams

Today, institutions across the globe continue to report dramatic surges in fraudulent activity. Perhaps even more alarming, frauds and scams have become increasingly sophisticated. This means it’s become all too easy to fall prey to a host of deceptive tactics used by cunning cyber criminals. Having access to your personal information is like money in the bank for criminals. You can help ensure the safety of your accounts by remaining vigilant about any suspicious activity, and carefully reviewing all your account transactions on a regular basis.

Rest assured, your ALEC accounts are protected.

ALEC employs highly advanced security procedures and very strict precautions. Our experienced staff continually monitor your accounts as well as our internal systems for any signs of fraud or criminal attempts to steal money or personal and sensitive information. Read our article to learn more about how ALEC protects you. And as a reminder, ALEC will never request your Social Security Number, PIN, CVV or one-time passcode by phone, text, or email.

Scams to be aware of.

Credit and Debit card fraud and ATM skimming are scams people are accustomed to seeing. Some scams going around are:

Sweetheart/Elderly Scam.

Congratulations — you met someone new online. Your new-found friend or relationship partner is asking for help with a problem, and they need you to wire or send funds to them. The request will come, so they can come visit you, for an auto repair, their business needing help, or help with their household expenses. If you offer to come visit them, there is always an excuse as to why you can’t meet up. DON’T send them any money. Sending money to a person you have never met face to face but is your “friend” is really not a friend.

Wire Mortgage Fraud.

You’re purchasing a new home and working with your mortgage company to schedule closing. The date is set, you receive wiring instructions, and a contact person. Then a couple of days before closing, you receive an email with “new” wiring instructions. DON’T wire the funds to the “new” wiring instructions— contact your mortgage company directly, using the original contact information, to verify the wiring instructions. Fraudsters are hacking title companies, trying to get people to wire the funds to a different place. If the money is sent to the fraudster, YOU are out the money, and your home closing can be affected!

ATM Fraud.

ATM fraud can occur when individuals lose their card, allow others to use it, or when their Personal Identification Number (PIN) is compromised. To protect yourself when using an ATM:

• Never write your PIN on your card or in your wallet. Memorize it and keep it secret from anyone not authorized on your account.
• Never use your date of birth, Social Security Number, license number, or street address as a PIN.
• Don't throw away receipts at the ATM location. Keep them to reconcile your account, then securely dispose of them when you get home.
• Be aware of your surroundings when using the ATM. At night, try to use a machine that’s well lit and avoid dark, remote locations.
• Make sure to take your card from the machine before you leave.
• Be aware of the person behind you. Make sure no one can see you entering your PIN or how much money you withdraw.
• Review your statement promptly to ensure all transactions are accurate. Report any discrepancies immediately.
• Destroy old cards immediately after receiving replacements.

Check Fraud.

Check Scams can occur in following situations:

• If you are overpaid and asked to refund some of the money to the employer or to a secondary person, this is a scam. After refunding the money, the scammer’s payment will not clear, but yours will, and you will be out the money.
• Do research on potential employer: Look up the name of the company or the person who’s hiring you, plus the words “scam,” “review,” or “complaint.” This could tip you off to possible problems.
• Don’t believe guarantees that you’ll make lots of money. Only scammers make these guarantees.
• Never agree to deposit a check to buy gift cards and send the numbers back as part of a job. Only scammers will say to do that.
• Spot the red flags. Do they want you to sign up fast — before you can ask any questions? Is your “employer” using a personal account, email, or number not affiliated with the company they say they’re with? Did they ask you to send money or pay for something? Those are signs of a job scam.

Other common scams to recognize and avoid.

More scams that criminals have devised to cleverly steal your money or identity include:

Foreign Lotteries.

Congratulations — you're notified that you've won a lottery or sweepstakes in a foreign country, but first must send funds to pay for fees and taxes on the winnings. DON'T deposit any checks that are purported to be winnings from a lottery or sweepstakes that you don't remember entering. Take time to research any offers you receive over the Internet.

Craigslist Scams.

You’re selling an item but have been given a check over the amount you’ve asked for or agreed upon. The buyer wants you to refund the overage by asking you to send the difference to them. In addition, Craigslist scams involving job opportunities have been reported. The fraudulent employer may overpay for your services rendered and ask for a refund for the amount overpaid.

Secret Shopper Scams.

Be aware of the secret shopper scams, these are usually jobs critiquing money transfer locations or retail stores. The fraudster will send you a check to deposit immediately and instruct you to either purchase gift cards or wire funds through a money transfer service. The instructions are very specific to not tell anyone of what you are doing, as to protect the “secret shopper” experience. Once the gift card information or funds transfers are sent, the money is spent or moved quickly.

Work From Home Scams.

Recently you have become unemployed, are looking for some part-time work, or are contacted for a job based on a resume you previously posted on an online job site. The work at home scam is when your new “employer” sends you a check for too much money, these funds are to be used to purchase equipment and send the difference back to them. That check is going to bounce, and you are going to be out any funds for purchases of equipment and funds sent back to the fraudster. Valid work from home companies will not send you funds prior to working or ask you to send funds to pay for supplies. Another version of this type of scam, is that the new employer will send you a check to purchase gift cards, then provide them the cards details. Valid work from home companies will not send you funds prior to working, ask you to send funds to pay for supplies, or ask that you purchase gift cards. 

Imposter Scams

Be aware of someone purporting to be your financial institution. Scammers can spoof phone numbers, so they appear to be phone calls and texts from your financial institution.

Remember, ALEC will not request the following information from you via text or email:

• Card information – card number, expiration date, security code (3 digits on back of card) PIN (personal identification number you selected)
• Personal information – social security number or date of birth
• Online banking log-on information – username, password or text verification code

If you receive a suspicious call, text or email claiming to be from ALEC please call us directly.

Cryptocurrency Scams

Stealing of digital assets is becoming more popular with scammers. Be cautious of anyone asking you to make payment via digital currency. Avoid people who offer great investment opportunities, especially if they claim guaranteed returns.

Digital Payment Fraud

When using peer-to-peer payments, things like Zelle^®, be cautious with who are sending to. Some important reminders:

• Never send money to anyone you’ve never met in person
• Never send money for a good or service you have not received
• Never send more money than what is requested.

Stay Vigilant

There are a lot of scammers and fraudsters ready to take your money or your identity. Stay vigilant to protect yourself. Be on the lookout for imposter scams and identity theft schemes. Always use secure websites, especially when divulging sensitive or financial information. We are here to help if you have any questions.