Member Education & Consumer Tips

Online Scams are Evolving

Knowledge is your best defense

Fraud is on the rise, with alarming increases in the average losses of victims reporting fraud. Read more about the latest scams and learn how to help keep your information safe.

Better Business Bureau (BBB) email scam
It has come to our attention that some Members are receiving fraudulent e-mails regarding a false complaint with the Better Business Bureau (BBB) and Redwood Credit Union (RCU). Please note that this is a fraudulent e-mail and is not generated by Redwood Credit Union nor by the Better Business Bureau. Read more.

Top Frauds and Scams

ATM Tampering

HOW IT WORKS:

Would be thieves tamper with an ATM in order to capture your ATM card and PIN. Typically, thieves attach devices like skimmers and false fronts to obtain the information stored on the magnetic strip or to trap a card.

To learn your PIN, thieves hide miniature cameras near the keypad, install a fake keypad over the real one, or simply stand close to the ATM where they can view your PIN entry.

Remember: Never use the ATM if someone is standing too close. Inspect ATM's carefully, looking for traces of adhesive, tape, exposed wires or signs that say the instructions have changed. If your card is not returned or you or the cash is not disbursed contact the ATM owner immediately.

Counterfeit Checks, Foreign Cashier's Checks

HOW IT WORKS:

Some online sellers of high priced goods receive requests from buyers in foreign countries (often in Africa) to accept foreign cashier's checks as payment for their items. Some of the requests offer to "overpay" for an item, and ask the seller to wire the overpayment back to the buyer through services such as Western Union or MoneyGram.

Online sellers are urged to use extreme caution when accepting foreign cashier's checks for high priced items, as such foreign checks may take weeks or months to clear and may be counterfeit. By the time the seller is informed that the check was indeed counterfeit, the buyer has already received their goods, as well as the overpayment refund.

REMEMBER:

Never accept overpayments from buyers for items where
the buyer is asking to be reimbursed for overpayment.

Note: Although contrary to popular belief, secure credit card transactions are considered the safest means of making and accepting online payments.

Source: ebay.com & fraud.org

Fake Escrow Accounts

HOW IT WORKS:

Usually used for expensive transactions, an escrow service, for a fee, acts as an intermediary between a buyer and seller. (Typically, the services hold onto the money until the buyer confirms the merchandise has arrived as advertised, thus greatly reducing the buyer's risk.) The trouble with escrow sites is that the vast majority are fraudulent according to the U.S. Federal Trade Commission (FTC).

Be suspicious of an escrow service site that claims to be affiliated with the government or that follows "U.S. Financial and Business Code." No such code exists.
Find out if the service is licensed and bonded. Get the business' physical address from the Web site and check its licensing with state officials. If the escrow service provides no address, avoid it.
A legitimate escrow site would NEVER send you an email telling you to either send your money or or your product to the other party.
Always trust your gut feeling. If you get a bad feeling about something, trust you instincts, don't do the deal. Others will come along later.

Internet Auction Fraud

HOW IT WORKS:

Many of the cases involve straightforward scams where consumers allegedly "won" the bid for merchandise through an Internet auction Web site, sent in their money, but never received the merchandise.

Before bidding find out all you can about the seller. Avoid doing business with sellers you can't identify, especially those who try to lure you off the auction site with promises of a better deal.
Protect your privacy. Never provide your Social Security number, driver's license number, credit card number, or bank account information until you have checked out the seller and the online payment or escrow service, if you're using one, to ensure legitimacy.
If you have problems during a transaction, try to work them out with the seller, buyer or site operator. If that doesn't work, file a complaint with your state attorney general's office and the FTC call toll-free 1-877-FTC-HELP (1-877-382-4357).

Nigerian Email

HOW IT WORKS:

This is a scam in which a wealthy foreigner, usually from Nigeria, sends you an email asking for help in moving millions of dollars from his homeland, with the promise of a hefty reward for your assistance. Usually, you're asked to first wire money to cover administrative costs, taxes, and other fees. Once you do this, the "wealthy foreigner" disappears. Many versions of this scam exist, all with the same theme: someone in a foreign country needs help transferring a large fortune and promises a huge reward.

Remember: Ignore and delete these emails

Telephone Credit Card Sam

HOW IT WORKS:

This is a scam in which a thief, claiming to be from the Security and Fraud Department of a credit card company, calls you to verify the 3-digit security code on the back of your credit card. Often, the thief will know your address and which financial institution issued the card, and will ask for the code in order to verify that you are in possession of your card. In reality, they want the code so that they can use it to purchase goods and services online.

Remember: Never release any card information to anyone who calls you. The card issuer already knows this information and will never call you to verify it.

Redwood Credit Union is doing everything we can to counter this type of criminal activity. Your account protection is our top priority. If you receive an unsolicited e-mail or phone call that seems suspicious, and is allegedly from our organization, please do not reveal any personal or account information. Instead, please call us at (800) 479-7928 to verify that the request is legitimate.