According to experts, widespread financial scams are on the rise, with an increase in fraudulent incidents involving consumers and businesses.
Bethpage Federal Credit Union officials report the specific details of an exceedingly prevalent COVID-19 financial scam during which a fraudster attempts to collect consumers’ personal information by impersonating a financial institution employee, and falsely claiming there are security issues related recent transactions.
Details of this type of financial scam include:
- Consumers receive a text message falsely claiming to be from their financial institution regarding a fictional recent charge on their debit card, asking the consumer to verify the transaction.
- The consumer then replies that they don’t recognize the charge in question.
- The consumer then receives a phone call from what appears to be the phone number of their financial institution, but is not, and from a supposed employee, who is not, asking them to verify their account information, including their social security number, online credentials, debit card/PIN numbers and a texted verification code.
- Finally, the consumer provides the information to the caller, allowing the fraudster to gain access to their online account
- The fraudster then initiates account changes, sends out payments, or even applies for loans in the consumer’s name.
Scott Gyllensten, Bethpage’s Chief Risk Officer states, “New Yorkers need to be aware of the increased risk of attempted fraud and heightened vulnerabilities created by the Coronavirus. While fraudsters are always lurking in the background, consumers should be especially vigilant now, as New York is experiencing an increase in the frequency and sophistication of fraud attempts during this unprecedented time.”
In response to this illegal activity, in recent weeks, Bethpage has increased its proactive outreach to members regarding the uptick in fraud, sharing specific examples of the scams, as well as detailed instructions and tips on how to handle this new onslaught of financial scams.
Gyllensten implores that “The best way to avoid falling victim to these fraudsters is to remain vigilant, be wary of scammers and understand that financial institutions, like Bethpage, will never make or send unsolicited calls, emails, or texts asking a member or account holder to provide sensitive or personal information, like a Social Security number, debit or credit card numbers, online credentials, PINs, etc.
Do not provide this information unless you initiated the contact and you know that the contact is legitimate. Even then you should be wary.”
If an individual believes that they have unwittingly shared their sensitive personal information or have fallen victim to a scam, making them susceptible to financial loss or identity theft, they should immediately contact their financial institution.