Fraud Alert: Protecting Yourself From Money Transfer Scams

Fraud Alert: Protecting Yourself From Money Transfer Scams

Peer-to-peer (P2P) or Account-to-Account (A2A) money transfers or payments provide members with a quick and convenient way to move funds. These transactions can be initiated via online banking or through mobile platforms such as Cash App, Google Pay, PayPal, or Venmo to name a few.

While these services are designed to be user-friendly and secure, fraudsters are getting creative and discovering new ways to gain access to members’ funds. To help protect yourself and loved ones, we’re sharing some common scenarios and tips to keep your accounts and identity safe.

Common Scenarios to Watch Out For

• When accessing your account(s) online, financial institutions may send a code via text to verify your identity. However, you will never receive a call or text from a credit union, bank, or investment company asking you to share this code. If someone contacts you requesting this information, it is a scam. Do not share the code and contact your financial institution immediately.
• Scammers are impersonating financial institutions. They may contact you by phone, text, or email, alerting you of “suspicious activity” on your account. They will instruct the consumer to send yourself money to “reverse” a transaction. Remember – your credit union or bank will never instruct you to send yourself or anyone else money.
• Fraudsters may identify themselves as a fraud department or merchant to gain your trust. They may ask you to confirm personal information, such as online banking credentials, verification codes, credit or debit card details, or your social security number. Their goal is to utilize this information to create a P2P account, giving them the ability to steal your identity and access to your account(s). It is important to remember to not share this information with someone who contacts you. If this happens to you, contact your financial institution.
• If someone contacts you indicating they “accidently” sent you money on a P2P platform and requests you send the money back, this should be a red flag. Rather than sending the money back, report the issue to the P2P service. If you send the money to the scammer, it’s likely you will be held responsible and not get your funds back.
• Finally, never allow a stranger to use your cell phone. In a matter of seconds, they can gain access to your payment apps and accounts to make unauthorized financial transactions.

How to Protect Yourself:

• Never send money to someone you don’t know or have never met.
• Don’t share personal information or bank verification numbers with anyone who contacts you unexpectedly.
• If someone claiming to represent a financial institution contacts you and insists you provide your personal information or verification numbers, immediately hang up. Then, contact your financial institution using their phone number on the back of your card, account statement or mobile app.
• Avoid Googling financial institutions phone numbers. Scammers create replica websites with fake contact information. Always utilize the phone number found on the institution’s official website or mobile app.
• Prior to sending someone money through a P2P or A2A platform, verify their name, email, and phone number. Similar to cash, once the funds have been sent, they cannot be recovered.
• Enable email and text alerts on your accounts to stay informed regarding transactions.
• Avoid accessing financial or personal information when using public Wi-Fi or mobile hotspots. These systems typically lack security, and scammers may gain access to your information.

While P2P and A2A transfers are convenient, efficient, and typically secure ways to transfer funds, it’s important to stay informed about these increasingly common scams. Fraudsters are becoming more sophisticated and eager to take advantage of people.

At the end of the day, trust your instincts. If something feels off when making a P2P or A2A transactions, don’t proceed. Rather, pick up the phone and contact your financial institution – they are trained professionals who are prepared to help protect you and your money.