Tips to Avoid Fraud This Holiday Season

From our friends at NCUA

While the holidays can be a time of celebration, they can also unfortunately be a time of higher rates of fraud. Here’s a list of tips to help you avoid becoming a victim this holiday season:

Stay Protected Online

  • Do not respond to unsolicited spam email.
  • Understand the risks of using unsecured or public wireless networks. If it’s open to the public, it’s possible that your personal information or your computer could be compromised.
  • Be cautious of email claiming to contain pictures in attached files, as the files may contain viruses. Only open attachments from known senders. Scan the attachments for viruses if possible.
  • When shopping online look for the padlock. Secured websites will have an icon of a locked padlock that appears, typically in the status bar at the bottom of your web browser, or right next to the URL in the address bar, depending on the internet browser you use. Don’t enter your personal or credit card information into a website if that icon isn’t present.
  • Never put your credit card information in an email.
  • Do not click on links contained within an unsolicited email.
  • Always compare the link in the e-mail to the web address link you are directed to and determine if they match.
  • Log directly onto the official website for the business identified in the e-mail, instead of linking to it from an unsolicited e-mail.
  • Contact the actual business that supposedly sent the email to verify if the email is genuine.
  • If your members are asked to act quickly, or there is an emergency, it may be a scam. Fraudsters create a sense of urgency to get their victims to act quickly.
  • Verify any requests for personal information from any business or financial institution by contacting them directly using their main contact information.
  • If you see something, say something. Report possible cybercrime to the FBI through the Internet Crime Complaint Center. Go to https://www.ic3.gov/default.aspx.

Package Delivery Scam

  • If you receive an email with the subject line reading “USPS Failed Delivery Notification,” or something similar, do not open it. The emails claim to be from the Postal Service and contain fraudulent information about an attempted or intercepted package delivery.
  • Clicking on the link activates a virus, which can steal personal information such as user names, passwords or financial account information. These emails look almost identical to official notifications from the real shippers by using legitimate-looking email addresses and even the official logos.
  • This scam is not limited to the USPS. Similar email and text scams are also circulating that appear to be from other shipping companies such as UPS and FedEx.

Using Public Wi-Fi

  • Using your laptop, tablet or smartphone at Wi-Fi hotspots in coffee shops, libraries, airports, hotels, universities and other public places is convenient, but often they’re not secure. If you connect to a Wi-Fi network, and send information through websites or mobile apps, it might be accessed by someone else. The bad guys are there too, shopping for your information.
  • One way scammers obtain your information is by putting out a Wi-Fi signal that looks just like a complimentary one. Choose the wrong Wi-Fi and the hacker now sits in the middle and steals your personal or financial information. When you use a Wi-Fi connection in a public place, it is better not to use your credit card.
  • To protect your information when using wireless hotspots, send information only to sites that are fully encrypted, and avoid using mobile apps that require personal or financial information.

Online Gift Card Scams

  • Gift cards purchased through online auction sites are often fraudulent or stolen. The safest way to purchase gift cards is directly from the merchant or retail store.

Stripped Gift Card Scams

  • You should also be careful when purchasing gift cards at retail stores, as well. Thieves can write down the code or use a device to scan the magnetic strip on the back of gift cards that are available on racks. Every few days, the thief will check the balance and redeem the card’s value online without the gift recipient’s knowledge.
  • When buying a pre-loaded card, always have the cashier scan the card to verify that the full amount is available.
  • Also, check to make sure that the packaging hasn’t been tampered with or damaged. This may be a sign that the gift card has been compromised, or replaced with a stripped gift card. If possible, register gift cards with the retailer for additional protection if it’s lost or stolen.

Charity Scams

  • The holidays are a time of giving. Before giving to a charity, take a look at two websites from the Federal Trade Commission on the warning signs of charity scams:
  • Also, the Internal Revenue Service has a search feature on its website that allows consumers to find legitimate, qualified charities to donate to. To learn more, visit http://go.usa.gov/cZrTF.

 


 

For additional info and resources on keeping your personal information safe, visit USACU.org/fraud

Indirect Lending: Know Before You Go

Have you ever heard the term “Indirect Lending”? If you’re shopping for a new car or truck, and heading to the dealer, it’s a good idea to understand exactly what indirect lending is, and how it can affect your purchase. Our Lending Supervisor, Callie Gibbs answers a couple of questions about this common dealer lending practice and gives some tips on what you may want to watch out for…

Q. What is Indirect Lending?
A. Indirect lending means that the dealer finds your financing for you. Your general application information is sent to several different credit unions for approval. This can mean several inquiries on your credit report, as well as your personal information in the hands of several institutions. The financial institution that ends up “buying” your loan then pays the dealer for that loan; generally, 2% or more of the loan amount.

Q. How does Indirect Lending differ from lending at USAgencies?
A. At USACU, we already know you. We will decision your loan request based on you, not just the numbers. Our loan officers can give you information about what to look for when shopping, the best rates available to you. We will also advise you on the amount to spend so that you don’t get in over your head and have buyer’s remorse. Your credit union doesn’t feel we should have to buy your loan; we want to earn your loan.

Q. What kinds of things should you watch out for with Indirect Lending?
A. The biggest concern with indirect lending is that the dealer is allowed to add on thousands in products. This can sometimes cause you to finance 130% or more of the value of the car.

Q. What’s better than Indirect Lending?
A. A USACU AutoCheck! With an AutoCheck, you’ll know how much you are approved for before you start shopping, so you won’t overspend, you’ll know the book value of the vehicle you’re looking for so you’ll be sure that you’re getting a good deal, and you’ll avoid sitting in a chair at the dealer for hours dealing with the “dealer finance guy” that your salesperson has to keep checking with. You just make the deal, complete and sign the AutoCheck, and drive off- it’s that easy! Basically, it will save you time and money… and who doesn’t want more of that?



For more Q & A with Callie, you can contact her directly:

Callie Gibbs, Lending Supervisor, USACU

Callie Gibbs
Lending Supervisor
Certified Financial Counselor
cgibbs@usacu.org
(503) 275-0312