Protect yourself and those you love.
In a recent scam targeting cash-strapped millennials, fraudsters are once again cashing in on people’s naivety and goodwill. This time they’re using social media to make it happen.
Fraudsters specifically look for victims who are short on funds, such as students with large loans hanging over their heads, struggling single parents or young professionals searching for a job.
Card cracking scams often start with an innocent-looking social media post that appears like the dozens you scroll through every day. The post may show up on the victim’s Twitter feed, Facebook page or on Instagram, and it will always showcase some form of quick cash. It might be an easy-to-win contest with a huge reward for the winner or a dream job that will instantly be yours – as soon as you follow the instructions. It may even be a complete giveaway, such as a cash bonus or a gift card that you’ll be granted just for sharing some information. If you click on the embedded link, you’ll be asked for your checking account information, your PIN or your online banking credentials.
Once the scammers have this information, they can do any number of things with their prize, from withdrawing large sums of cash from your account to using your debit card number for a massive shopping spree. They may even help themselves to funds you have in your account, such as a paycheck or student loan.
In another iteration of card cracking, scammers will tug on victims’ heartstrings, claiming their personal accounts are frozen and they have no access to money. They’ll ask the victim to allow them to access the victim’s account for simple transactions such as depositing checks. Once the checks are in, the scammer will cash in on the amount, and a few days later, when the check bounces, the scammer will be long gone. This variation is sometimes played out in person, on college campuses.
In yet a third scheme, card crackers promise victims a cut of fraudulent funds if the victim allows them to use their account. Victims often rationalize this crime by assuring themselves that they’re not actually playing a part in the fraud. Of course, they will still be held accountable when the scammers are busted.
Don’t be the next victim. Here’s how to protect yourself from card cracking:
Never share personal information with a non-trusted stranger
You’ve heard it a thousand times, but this rule cannot be overstated. Never share sensitive information with a correspondent whose identity you cannot verify with absolute certainty. You wouldn’t think of giving your checking account number to a solicitor you met on the street; why would you share it with a stranger online?
Of course, card cracking and similar schemes are designed to make the intended victim believe the scammers are legitimate. That’s why it’s important to authenticate a web address, company or offer by asking for a street address or phone number.
When it’s too good to be true, it usually is
Remembering this rule of thumb will go a long way toward helping you recognize scammers. Free or easy money exists only in fairy tales. Don’t believe the Facebook post that promises you’ll land that dream job you’ve been searching for if you only hand over your account passwords. Ignore the offer for a free gift card and don’t believe the sob story about frozen accounts leaving people penniless.
Never cash a check for someone else
You are not a credit union or a check-cashing business. If someone approaches you in person or online and asks you to cash a check for them, politely refuse. Unless you would trust this person with your life, there is no reason to believe their tale is legitimate or that their check will be honored.
Use Online/Mobile banking to track accounts and report any suspicious activity
Most Credit Union’s have online/mobile banking services which allows you to track the expenses on your account. Check your account frequently to verify the charges on your account.
If you notice any suspicious activity on your account, report it immediately. You may have fallen prey to a card cracking scam and you don’t even know it!
Scammers may be smart, but you can be smarter. When you’re educated, alert and aware, you’ll be able to spot most scams before it’s too late.