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Scams

Definitions

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Visa Debit Scam
February 13, 2008

Credit union members are receiving a bogus e-mail from the address debit@visa.com requiring the member to call an 800 phone number to update the information on their Visa debit card account or the account will be deleted from the data base. The subject of the e-mail is "Urgent Notification" and the sender claims that fraud attempts have occurred resulting in a temporary suspension of the account and so the member must call. This is a "phishing" email from a thief trying to acquire members' personal financial information.

Remember, UMCU would never send e-mail asking members to update their card number and expiration dates.
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Scam Uses IRS Name
February 2008

The Internal Revenue Service (IRS) issued a warning that thieves are posing as the IRS in order to gather personal financial information from the public. The IRS does not ask for personal identifying or financial information via unsolicited e-mail, telephone calls, or text messaging. Here's how it works. You may receive a message describing a (phony) situation that requires you to enter your personal financial information to resolve the "problem." For example:
* You have a sizeable tax refund you can only get by filling out an online form.
* You are being audited and must fill out information online
* A caller claims your IRS refund was mailed but the check wasn't cashed. You are asked to verify financial information.

What can you do? Contact the IRS at 800-829-1040 to determine if the IRS is trying to contact you regarding a tax refund. Also, do not open any attachments to suspicious e-mail since they could contain malicious code that could infect your computer.

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Jury Duty Scam
January 2008

The FBI is reporting that a growing number of people are receiving fraudulent phone calls in which a person claiming to be a jury coordinator threatens the person taking the call with arrest for failing to respond to a summons for jury duty. When the recipients protest that they were never contacted, the scammer asks for a Social Security number and date of birth to verify the information and cancel the arrest warrant. The callers often claim there is a fine involved in failing to respond - which can be paid over the phone by providing a Visa or MasterCard number.

"Most of us naturally take a summons for jury duty seriously, which makes this a particularly effective and sinister type of fraud," Todd Mason, CU Village President/COO, said.

Remember to keep your personal information secure and refuse to share it with any unsolicited phone caller or e-mailer.

"With enough information, scammers can assume your identity and empty your accounts," Mr. Mason said.

Room Rental Scam
Reported on May 16, 2007

A UMCU member was advertising for roommates to rent a room in her residence. A man e-mailed her that he was the father of an international student who would be attending the University of Michigan and would need a room. He sent a check. But soon he sent e-mails giving different reasons why the international student was delayed and asked our member to return his money via Western Union. The check the "father" sent, meanwhile, was fraudulent. It appears that this scam came out of Nigeria. It is a similar concept to other Nigerian scams, except the “goods” being purchased is rental of a room.

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Telephone Scam
Reported on May 3, 2007

A member reported she received a phone call from a woman claiming to be from the credit union.  She told the member that she could get a better interest rate on her credit card if the member provided her credit card number and her personal information.

This is a scam. UMCU would never contact members in this way.

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Scam E-Mail Sent To Members October 30, 2007

Members reported receiving a suspicious email from "Co-op Services Credit Union." This email is a fraud. There are two versions. The first one begins: "You have received this email because we have strong reason to believe that your Co-op Services Credit Union account had been recently compromised." The other fraudulent email begins: "Co-op Services Credit Union temporarily suspended your account. Reason: Billing failure. We require you to complete an account update so we can unlock your account."

These emails are part of a scam to falsely obtain your account information. Do not respond.

Some members have reported receiving suspicious email supposedly from the University of Michigan Credit Union. This is an attempt to acquire your financial information for the purpose of committing identity theft or creating counterfeit cards.

Remember, we would never ask for private account information over the e-mail or telephone. Do not follow the instructions in the e-mail. Do not click on any links. Delete the e-mail. If you have responded, please contact our Member Service Phone Center at 734-662-8200 or 800-968-8628.

A sample of this false e-mail message is shown below.

Dear University of Michigan Credit Union Customer,

We regret to inform you that we had to lock your University of Michigan Credit Union account access because we have reasons to believe that it may have been compromised by outside parties. In order to protect your sensitive information, we temporarily suspended your account access.

This is a fraud prevention measure meant to ensure that your account is not compromised.

We encourage you to log in and restore full access as soon as possible.

Never reveal your password to another person. You should periodically change your password in the User Option screen of online banking. Regularly check your bank, credit and debit card statements to ensure that all transactions are legitimate.

Please click on the link below to complete the verification process and restore full access to your account:

http://www.umcu.org/

Thank you for your prompt attention to this matter.
We apologize for any inconvenience.

Sincerely,
University of Michigan Credit Union Customer Service
A member of NCUA

© 2006 University of Michigan Credit Union

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Counterfeit Checks and Money Orders Scam

A member alerted UMCU on March 20 about the following scam. For more information, refer to this article from a February 3 report.

February 3, 2006
A new scam has cropped up in the Midwest, combining a phony check scam with the popularity of the "mystery shopper" craze. In Monroe County, Wisconsin, the sheriff’s office says it has received several reports of attempts to scam more than $3,000 from local residents.

It works like this: a consumer receives an official looking package that promises to pay $350 for help in evaluating a MoneyGram service. But recipients are instructed to act on the offer within 48 hours, or the offer becomes void.

Inside the package is a cashier's check for $3,575. Recipients are instructed to deposit the check and then use the MoneyGram service to send the scammer the $3,575 back. After the transaction, they are told, they will receive a check for $350.

Police say the cashiers checks are phony, so if victims send a MoneyGram, they're sending their own money, which they can't retrieve. By instructing the victim to act within 48 hours, the scammer makes sure there isn’t enough time for the check to bounce before the victim sends the MoneyGram.

Source: www.consumeraffairs.com

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A Scam Involving Fraudulent Cashiers Checks

Don't be a victim! A scam involving counterfeit cashiers checks or money orders has been growing in popularity. The victims are people who are selling a personal item (a vehicle, gym equipment, etc.) on the Internet.

Here's how the scam works: the "buyer" notifies the seller by e-mail that he wants to purchase the item, and tells the seller to remove the ad immediately. He sends the seller a cashier's check or money order that exceeds the purchase amount - sometimes by thousands of dollars - saying the excess amount is to be used to pay shipping or other related costs. The seller doesn't realize that this cashiers check is fraudulent.

The seller is instructed to deposit the cashiers check and send the remaining funds back to the buyer in the form of a money order, cashiers check or wire transfer. In some cases, the "buyer" convinces the seller that something has come up so he or she needs to cancel the sale, and successfully cons the victim into sending back the entire amount of the original cashiers check.

By the time the seller's financial institution discovers that the cashiers check is fraudulent and notifies the seller, the victim seller usually has already mailed the excess funds (and often the item that was for sale) to the buyer. The victim is now responsible for the full amount of the check. Of course, the scam artist cannot be located.

Be wary of any purchasers proposing to conduct transactions this way! Be especially suspicious of e-mail offers from outside the U.S. Take steps to ensure that a check has fully cleared before doing anything with the funds.

Fraud Alert

We are receiving reports about thieves who call members and pretend there is a problem with their UMCU account and ask for account information to "solve the problem." This is an attempt at identity theft, a growing crime. Members are alerted to never give personal financial information over the telephone.

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Court Workers Scam

Identity thieves have a new scam. Posing as court workers, they may call you and claim you've failed to report for jury duty, there is a warrant for your arrest, and they therefore need your social security number and other personal information.

If you receive this phone call, do not cooperate. It is scam.

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Potential Credit Card Fraud Update

As you may have heard on national news, a breach at a 3rd party payment processor exposed over 40 million card accounts to potential fraud. (Twenty-two million of these cards were VISA cards.)

Please be reassured that VISA is working to identify the cards that have been compromised and UMCU will take appropriate steps to protect you as a consumer.

Remember that you as the consumer have 0 liability for any fraudulent transactions as long as you notify us within 60 days. To notify us, call our Member Service Phone Center (1-734-662-8200 or 1- 800-968-8628), or visit any branch.

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Latest Scam Reported By Members

Members are reporting a new phishing scam. DO NOT respond to the following e-mail: "Please confirm your identity here. Restore My Online Banking and complete the 'Steps to Remove Limitations.' Completing all of the checklist items will automatically restore your account access."

This e-mail is not from UMCU. Questions? Call 662-8200 or 800-968-8628.

Another Reported Scam

In December, another scam attempt was reported. This time the e-mail appears to be from the CO-OP Network asking members to verify their ATM card numbers, PINs, and personal account information.

The CO-OP Network would never ask to verify any type of card or account information. This is a fraudulent e-mail. DO NOT respond to it.

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New Scam E-Mail Hitting In-Boxes

January 2006

Some members are receiving the following e-mail which erroneously claims to be from CUNA (the Credit Union National Association). Do not respond to this e-mail as it is a scam designed to collect your account information. Here's a sample:

To: (Name of UMCU Member)
> Subject: Billing Update
> Reply-To: "Credit Union" <members@cuna.org>
>
In attention of all Credit Union customers, screening the accounts in our system. We recently reviewed your account, and we need more information to help us provide you with secure service. Until we can collect this information, your access to sensitive account features will be limited. We would like to restore your access as soon as possible, and we apologize for the inconvenience.

Why is my account access limited?

Your account access has been limited for the following reason(s):

*We would like to ensure that your account was not accessed by an unauthorized third party. Because protecting the security of your account is our primary concern, we have limited access to sensitive Credit Union account features. We understand that this may be an inconvenience but please understand that this temporary limitation is for your protection.

(Your case ID for this reason is PCU1-818-214-242146.)

At Credit Union, one of our most important responsibilities to you, our customer, is the safekeeping of the nonpublic personal ("confidential") information you have entrusted to us and using this information in a responsible manner. Appropriate use of the confidential information you provide us is also at the heart of our ability to provide you with exceptional personal service whenever you contact us.

How can I restore my account access?

Please confirm your identity here: Restore My Online Banking and complete the "Steps to Remove Limitations."

Completing all of the checklist items will automatically restore your account access.

July 2006

Some members are receiving the following e-mails which erroneously claim to be from University of Michigan Credit Union. Do not respond to any e-mail or click on any link, as it is a scam designed to collect your account information. UMCU will never ask you to verify your account information online.

Here are samples of the e-mails:

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University of Michigan Credit Union Alert Message

We recently noticed the following issue on your account: We would like to ensure that your account was not accessed by an unauthorized third party. Because protecting the security of your account is our primary concern, we have limited access to sensitive UM Credit Union account features. We understand that this may be an inconvenience but please understand that this temporary limitation is for your protection.

If you recently accessed your account while traveling, the unusual log in attempts may have initiated by you.

However if you are the rightful holder of the account, click on the link below and submit, as we try to verify your account:

http://www.umcu.org/

We thank you for your prompt attention to this matter. Please understand that this is a security measure intended to help protect you and your account. We apologize for any inconvenience.

If you received this notice and you are not the authorized account holder, please be aware that is in violation of University of Michigan Credit Union policy to represent oneself as another UM Credit Union account owner. Such action may also be in violation of local, national, and/or international law. University of Michigan Credit Union is committed to assist law enforcement with any inquires related to attempts to misappropriate personal information with the Internet to commit fraud or theft. Information will be provided at the request of law enforcement agencies to ensure that perpetrators are prosecuted to the fullest extent of the law.

* Please do not respond to this email as your reply will not be received.

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DEAR UNIVERSITY OF MICHIGAN CREDIT UNION CUSTOMER,

We regret to inform you that we had to lock your UM Credit Union account access because we have reasons to believe that it may have been compromised by outside parties. In order to protect your sensitive information, we temporarily suspended your account access. This is a fraud prevention measure meant to ensure that your account is not compromised.

We encourage you to log in and restore full access as soon as possible. Never reveal your password to another person. You should periodically change your password in the User Option screen of online banking. Regularly check your bank, credit and debit card statements to ensure that all transactions are legitimate.

Please click on the link below to complete the verification process and restore full access to your account:

http://www.umcu.org/

Thank you for your prompt attention to this matter. We apologize for any inconvenience.

Sincerely, University of Michigan Credit Union Customer Service A member of NCUA

P.O. BOX 7850 ANN ARBOR, MI 48107-7850

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University of Michigan Credit Union Alert Message

We recently noticed the following issue on your account: We would like to ensure that your account was not accessed by an unauthorized third party. Because protecting the security of your account is our primary concern, we have limited access to sensitive UM Credit Union account features. We understand that this may be an inconvenience but please understand that this temporary limitation is for your protection.

If you recently accessed your account while traveling, the unusual log in attempts may have initiated by you.

However if you are the rightful holder of the account, click on the link below and submit, as we try to verify your account:

http://www.umcu.org/

We thank you for your prompt attention to this matter. Please understand that this is a security measure intended to help protect you and your account. We apologize for any inconvenience.

If you received this notice and you are not the authorized account holder, please be aware that is in violation of University of Michigan Credit Union policy to represent oneself as another UM Credit Union account owner. Such action may also be in violation of local, national, and/or international law. University of Michigan Credit Union is committed to assist law enforcement with any inquires related to attempts to misappropriate personal information with the Internet to commit fraud or theft. Information will be provided at the request of law enforcement agencies to ensure that perpetrators are prosecuted to the fullest extent of the law.

* Please do not respond to this email as your reply will not be received.

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For helpful information on how to protect yourself from these types of scams, read UCMU's article on Phishing

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South African Scam

Here is a scam a member received. It is not authentic and should be ignored.

The member got a letter from "Barrister David Bapela" in Johanesburg, South Africa. Mr. Bapela explained he was writing since he cannot find any U.S. relatives of his wealthy and recently deceased client. If no relatives are found, the client's bank will confiscate the money.

Mr. Bapela offered our UMCU member 20% of the deceased client's estate if the member would pretend to be a relative.

This letter is a scam.

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Identity Theft: a Modern Problem

By Kathryn Greiner

Director of Credit Education

Identity theft is one of the fastest growing crimes in America. Someone may use your personal information - your social security number, credit card number, or account number - to pose as you, run up charges, and avoid paying the bill. The victim is often unaware there is a problem until he or she applies for a loan and is denied for poor credit due to unpaid obligations.

How can you protect yourself from an identity theft? Experts offer many tips: don't include your driver's license number on your checks; don't carry your social security card in your wallet; don't use your social security number or VISA card as an identifier or proof of age; avoid using your mother's maiden name or your birth date as passwords on your accounts, and never give anyone personal or account information if you did not initiate the contact. Because thieves raid mailboxes and dumpsters, it's wise to destroy financial statements and receipts before throwing them out and verify that your mailbox is secure. Additionally, check your credit report at least once a year to make sure the activity is correct.

If you become a victim: 1) contact the fraud departments of the three major credit reporting agencies. Call Equifax (800-685-1111), TransUnion (800-888-4213), and Experian (888-397-3742) and ask them to place a "fraud alert" on your file to help prevent additional thefts; 2) contact creditors and close the accounts the thief has accessed; 3) file a report with your local police and get a copy of the police report to help you deal with creditors.

To learn more about credit and other money matters, call budget counselors Kathryn Greiner or Beth Blanco (both at 734-663-7900) for an appointment for a free counseling session.

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Beware Of An Internet Scam Called "Phishing"

ALERT: This scam is circulating to UMCU members.

There's a new type of Internet piracy called "phishing." It's pronounced "fishing," and that's exactly what these thieves are doing: "fishing" for your personal financial information. What they want are account numbers, passwords, Social Security numbers, and other confidential information that they can use to loot your checking account or run up bills on your credit cards. With the sensitive information obtained from a successful phishing scam, thieves can take out loans or obtain credit cards and even driver's licenses in your name. By understand how phishing works and how to protect yourself, you can help stop this crime.

Here's how phishing works:

In a typical case, you'll receive an e-mail that appears to come from a reputable company that you recognize and do business with, such as UMCU. In some cases, the e-mail may appear to come from a government agency, including one of the federal financial institution regulatory agencies.

The e-mail will probably warn you of a serious problem that requires your immediate attention. It may use phrases such as "Immediate attention required," or "Please contact us immediately about your account." The e-mail will then encourage you to click on a button to go to the institution's web site. You could be redirected to a phony web site that may look exactly like the real thing. Sometimes, in fact, it may be the company's actual web site. In those cases, a pop-up window will quickly appear for the purpose of harvesting your financial information.

In either case, you may be asked to update your account information or to provide information for verification purposes: your Social Security number, your account number, your password, or the information you use to verify your identity (such as your mother's maiden name or your place of birth) when speaking to a real financial institution. If you provide the requested information, you may find yourself the victim of identity theft!

Actual phishing scam examples for UMCU members:

This first example was sent to a member and the actual message contained the UMCU logo.

Dear Customer,

To protect your University of Michigan Credit Union Internet Banking account from unauthorized access, we have set limit of failed attempts. Unfortunately, you have just reached critical number of attempts, so your access to Online Banking has been limited for the security purposes.

This measure doesn't affect your access to ATM machines.

You must click the link below and change your password from your Online Banking Account , after this your account will be ready for use.

http://www.umcu.org/online

Thank you,

University of Michigan Credit Union Administration

DO NOT click on the link. DO NOT respond to this email. It is NOT from UMCU.

This next example is the text of an e-mail a member received. The sender claimed to be VISA. Delete this e-mail, if you receive it. Identity thieves use this approach to secure your personal financial information and the e-mail is not from VISA.

"Good afternoon, unfortunately some processing's have been cracked by hackers, so a new secure code to protect your data has been introduced by VISA. You should check your card balance and in case of suspicious transactions immediately contact your card issuing bank. If you don't see any suspicious transactions, it doesn't mean that the card is not lost and cannot be used. Probably, your card issuers have not updated information yet. That is why we strongly recommend you to visit our website and update your profile, otherwise we cannot guarantee stolen money repayment. Thank you for your attention. Click here and update your profile."

Again, DO NOT click on the link. DO NOT respond to this email. It is NOT from UMCU.

How to protect yourself:

If you are unsure of the contact's legitimacy, contact the financial institution yourself. For UMCU, you may call our Member Service Phone Center at 734-662-8200. The key is that you should be the one to initiate the contact, using contact information that you have verified yourself.

Never provide your password over the phone or in response to an unsolicited Internet or phone request. UMCU will never ask you to verify your account information online.

Review your account regularly to ensure all account activity is legitimate. Use our MemberNet Online Banking on a regular basis to catch suspicious activity.

What to do if you fall victim:

  • Contact us immediately to alert us to the situation.
  • If you have disclosed sensitive information in a phishing scam, also contact one of the three major credit bureaus and discuss whether you need to place a fraud alert on your file, which will prevent thieves from opening an account in your name. Here is the contact information for each bureau's fraud division:
    Equifax, 800-525-6285
    Experian, 888-397-3742
    TransUnion, 800-680-7289
  • Report all suspicious contacts to the Federal Trade Commission through the Internet at www.consumer.gov/idtheft, or by calling 1-877-IDTHEFT.

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