Brought to you by Jerry Collins, CU*Answers Collections Assistant Manager.
During a recent loss prevention gathering yet another new scam has been discovered. Legitimate members are selling their debit cards or numbers to know fraudsters for cash. The perpetrator then uses the card to buy marketable assets like gift cards and do cash advances. Once they get rejected they move on to another card.
The member in the meantime is told to wait a few days and then report the card lost or stolen and they are shielded from the loss and the Credit Union ends up with it. This looks like a very legitimate set of actions but is indeed a scam.
Beware of these issues and track suspicious activity. Remember to report these to the Secret Service too as it may only be one instance for you but they may get one instance from 40 Credit Unions and then they can build a case.
While this can happen anywhere the current ‘trend’ is much more prevalent in cities that have a college in their town or near one. Just another reason we need to teach members at an early age about fraud and scams and right and wrong. We need to remind our members that these are very serious federal criminal actions and have just as serious consequences if caught.