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Holy Rosary Credit Union is concerned about the increase in fraud, through the internet and other areas. We hope this page will help you protect yourself. We will be updating it and adding to it as soon as we hear anything that we think might help you, so check it frequently. And don't forget, we are here to help, so if you are doubtful call us before you give out any personal information.
Advertisements have been posted on Craigslist as part of member recruitment scams nationwide. The ads solicit current credit union members and offer $75.00 or more for their assistance with qualifying a new member. This scam is targeting credit unions and members across the country.
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Individuals are using deposit accounts to receive unauthorized electronic funds transfers and forward funds overseas to criminals.
The Federal Deposit Insurance Corporation (FDIC) is warning financial institutions of an increase in schemes to recruit individuals to receive and transmit unauthorized electronic funds transfers (EFTs) from deposit accounts to individuals overseas. These funds transfer agents, often referred to as "money mules," are typically solicited on the Internet by criminals who have gained unauthorized access to the online deposit account of a business or consumer. In a typical scenario, the criminal will originate unauthorized EFTs from a victim's account to a money mule's deposit account. The money mule is then instructed to quickly withdraw the funds and wire them overseas after deducting a "commission" (commonly eight to ten percent).
Criminals target online deposit accounts at institutions where business customers can originate EFTs, such as automated clearing house (ACH) and wire transfers, over the Internet. Money mules, however, can be customers at any depository institution where EFTs can be received and funds withdrawn. In some cases, the money mule may be an unknowing accomplice in a fraud scheme. Because EFTs are often made immediately available by the receiving institution, funds may be removed and wire transferred overseas before the fraud is detected. Refer to SA-147-2009 http://www.fdic.gov/news/news/specialalert/2009/sa09147.html for more information on fraudulent EFT schemes.
Money mule schemes can take many different forms, but most involve receiving unauthorized EFTs into a deposit account and then withdrawing the funds or forwarding them on to another party via another EFT. The following are common scenarios:
- Online job posting Web sites are used by criminals to locate individuals seeking employment with flexible work hours that can be performed from home. These work-at-home schemes often involve written employment contracts, job descriptions and procedures to legitimize the scam.
- Advance fee scams promising large monetary rewards for acting as a financial intermediary can entice individuals to participate in this activity.
- Mystery shopping jobs may be used that require the employee to assess the performance of money service businesses by completing EFTs and then evaluating the service using customer satisfaction forms.
- Social networking sites may be used to recruit individuals to act as money mules. Criminals conjure up various imaginative stories to befriend and persuade individuals to receive and forward stolen funds.
- Some hesitant or skeptical money mules have been intimidated, harassed and threatened by their criminal "employers" to process the funds transfers quickly and with secrecy.
- The personal identifiable information provided by the money mule might later be used to commit identity theft or account takeover.
The following are examples of events that may indicate money mule account activity:
- A deposit account opened with a minimal deposit soon followed by large EFT deposits.
- Deposit customers who suddenly begin receiving and sending EFTs related to new employment, investments, business opportunities or acquaintances (especially opportunities found on the Internet).
- A newly opened deposit account with an unusual amount of activity, such as account inquiries, or a large dollar amount or high number of incoming EFTs.
- An account that receives incoming EFTs then shortly afterward originates outgoing wire transfers or cash withdrawals approximately eight to ten percent less than the incoming EFTs.
- A foreign exchange student with a J-1 Visa and fraudulent passport opening a student account with a high volume of incoming/outgoing EFT activity.
Money mule activity is essentially electronic money laundering addressed by the Bank Secrecy Act and Anti-Money Laundering Regulations. Strong customer identification, customer due diligence, and high-risk account monitoring procedures are essential for detecting suspicious activity, including money mule accounts. Financial institutions can find additional guidance about customer identification, account monitoring, suspicious activity reporting, and identity theft red flags below:
Financial institutions should act promptly when they believe fraudulent or improper activities have occurred, such as those of a money mule. Appropriate actions may include, but are not limited to, filing a Suspicious Activity Report and/or closing the deposit account in accordance with existing, board-approved account closure policies and procedures.
Cyber-fraud incidents and other fraudulent activity may be forwarded to the FDIC's Cyber-Fraud and Financial Crimes Section, 550 17th Street, N.W., Room F-4004, Washington, D.C. 20429, or transmitted electronically to alert@fdic.gov. Questions related to federal deposit insurance or consumer issues should be submitted to the FDIC using an online form that can be accessed at http://www2.fdic.gov/starsmail/index.asp.
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E-mails fraudulently claiming to be from the FDIC are attempting to trick recipients into installing unknown software on personal computers. These e-mails falsely indicate that recipients should download and open a "personal FDIC insurance file" to check their deposit insurance coverage. The "insurance file" may actually be a form of spyware or malicious code and may collect personal or confidential information.
The Federal Deposit Insurance Corporation (FDIC) has become aware of e-mails appearing to be sent from the FDIC that are asking recipients to download and open a "personal FDIC insurance file" to check their deposit insurance coverage. These e-mails are fraudulent and were not sent by the FDIC. The FDIC is attempting to identify the source of the e-mails and disrupt the transmission.
Currently, the subject line of the fraudulent e-mails includes the wording "check your Bank Deposit Insurance Coverage." The e-mails state: "You have received this message because you are a holder of a FDIC-insured bank account. Recently FDIC has officially named the bank you have opened your account with as a failed bank, thus, taking control of its assets."
The e-mails ask recipients to "visit the official FDIC website" by clicking on a hyperlink provided, which appears to be related to the FDIC and directs recipients to a fraudulent Web site. The Web site includes hyperlinks that appear to open forms. However, it is believed that clicking on the hyperlinks will cause an unknown executable file to be downloaded. While the FDIC is working with the United States Computer Emergency Readiness Team (US-CERT) to determine the exact effects of the executable file, recipients should consider the intent of the software as a malicious attempt to collect personal or confidential information, some of which may be used to gain unauthorized access to online banking services or to conduct identity theft. Financial institutions and consumers should NOT access the Web site or download the executable files provided on the Web site.
Information about counterfeit items, cyber-fraud incidents and other fraudulent activity may be forwarded to the FDIC's Cyber-Fraud and Financial Crimes Section, 550 17th Street, N.W., Room F-3054, Washington, D.C. 20429, or transmitted electronically to alert@fdic.gov. Information related to federal deposit insurance or consumer issues should be submitted to the FDIC using an online form that can be accessed at http://www2.fdic.gov/starsmail/index.asp.
For your reference, FDIC Special Alerts may be accessed from the FDIC's website at www.fdic.gov/news/news/SpecialAlert/2009/index.html. To learn how to automatically receive FDIC Special Alerts through e-mail, please visit www.fdic.gov/about/subscriptions/index.html.
** Important Reminder to all HRCU members **
HRCU would like to remind you to guard your account information.
HRCU will never ask for your account information
over the phone or via email.
If you are contacted by someone claiming to be from HRCU who asks for you to give or confirm account information, please DO NOT offer the information, and contact us immediately at (877) 895-6840.
A member received a phone call from someone stating they were from HRCU offering a new credit card with a low interest rate of 5.99%. They asked the person for their personal information which he declined to give.
Identity Theft:
Identity theft occurs when someone else uses your name and social security number to set up false credit accounts, write bad checks and/or enter into contracts in order to defraud. In order for someone to do this they must have access to personal information such as name, social security number, address, date of birth etc. Unfortunately this information is not that hard to obtain these days. There are some things you can do to protect yourself.
- Don't put your social security number on your checks or any other papers that you may give out. Member social security numbers used to be printed on our statements until about ten years ago, when a member pointed out that should a statement become lost or stolen their account number and SSN would be there for the taking. We took it off. So should you
- Never give out any other information when making a credit card purchase. Retailers will sometimes ask you for your phone number or other information when taking a credit card for purchase. VISA (or MasterCard for that matter) does not require this and if they follow the VISA guidelines they don't need it. Refuse, they won't give up the sale.
- Take inventory of the things you carry in your wallet. You may carry your Social Security card or have store credit cards you hardly ever use. These can be stolen and used before you even know they are missing. Check them on a monthly basis, maybe when you balance your checkbook...you do balance your checkbook don't you.
- The federal government has passed a law that allows you to check your credit rating once a year. Do it. Here is the link annualcreditreport.com or call toll free (877) 322-8228. Note: be careful of offers that don't offer this link see above.
- When a wallet is stolen or your house broken into let us know immediately. The sooner we catch this, the better off you will be.
- Pay attention if you get a collection call from a company you never heard of or if you get turned down for a loan. This may be the first indication someone else is using your name.
What to do when you think your Identity is in jeopardy:
- Come see us, we will help you through the process
- Come in even if you aren't sure, we won't mind, we'd be relieved to tell you its nothing.
- Once it is confirmed report it to the police
| Credit/Debit Card Fraud |
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It seems as though there is a new scheme for credit/debit card fraud everyday. The most important thing that you should know is that you are protected from most liability by law. If your credit/debit card is lost or stolen, if someone uses your number on-line you are not liable. So don't let anybody sell you credit card "insurance" you don't need it. You do, however, have to follow certain rules.
- Don't give out your PIN number to anybody. It is considered permission to use the card. An on-line company never needs your PIN, if they are asking for it they are doing something fraudulent. And don't hand your card to your son's girlfriend's nephew's brother and tell him your PIN so he can pick you up $20.00. If you give out your PIN and they use it, all liability switches back to you.
- Don't give out any information on-line unless you initiated the transaction. As a matter of fact your security number, (the last three numbers of the longer number above your signature on the back of the card) should only be requested if you are purchasing something or if you initiated the transaction.
- Buying on line is usually safe if you:
- Deal with a company you know
- Look for the Verisign logo
- Don't have them store your information put it in fresh each time
- You initiate the transaction
- Check your bank statements carefully. There is a timeframe for reporting transactions that may not be yours. And it is a great help to us.
- Check your credit card statements carefully, same reasons as above.
- Be careful at ATMs.
- Don't allow anyone to see you put in your PIN.
- Look out for oddly placed mirrors.
- Try to use machines in established businesses
- Don't use machines in deserted and/or badly lit spaces.
- Put your money away immediately.
- Look up ATM locations before you travel, you never know who you might have to ask for directions otherwise, and besides then you can look up machines that are surcharge free.
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