Fraud Prevention

Crypto comes with many risks and even more scams. For crypto investment fraud, scammers will go to the extent of joining online social media forums or chats to build trust with their target victims and then refer them to invest in crypto.  On some occasions, victims have been asked to pay upfront taxes or fees to cash out their crypto investment. However, this money is never returned.  

Additionally, consumers should use extreme caution if they receive a request to conduct a transaction through a Bitcoin ATM from someone whom they met online or received a phone call from.

To learn more about crypto scams, check out this FTC blog: https://consumer.ftc.gov/articles/what-know-about-cryptocurrency-and-scams

Scammers are getting more sophisticated, learning about specific individuals and targeting them based on personal information.

With the advance of technology, payment scams are becoming harder to detect. The ABA says, “Payment scams manipulate victims into sending money to scammers. Some scammers even use generative AI (artificial intelligence)—such as deepfakes—to make scams harder to detect. Payment scams can cause significant financial losses and are a growing problem in the United States.”Consumers - and therefore scammers - can access free online ai tools such as voice generators, video “clones,” and lipsyncing tools that can make one believe they are talking with someone they are not.

Be on guard against social engineered scams and remember that a bank will never ask for your pin, access code, username, or password over the phone or email.

Be on Gaurd Against Social Media Marketplace Scams

Shopping on marketplace sites can be a fun way to find unique gifts. However, it is okay to question the integrity of the individual you are buying from and the item posted. Here are 3 things to consider when making marketplace purchases: 1) Check if the seller has an established profile and positive reviews. 2) Ask for more information or a second photo of the item. 3) If buying locally, meet at a safe, public place during the day. Bring a friend, if possible. Remember, a few precautions can go a long way to ensure a happy shopping experience. 

Don't Pay for Followers

It’s not uncommon for someone with a social media account to receive a direct message from a company claiming that they can get you more followers…for a price. Most of the time, this is a scam. Scammers will ask you to enter your bank account information or sign up for a subscription on a suspicious payment page. This often results in financial loss or identity theft. These scam accounts often have low follower counts, strange profile pictures, and use lots of emojis in their messages. Stay alert, and don’t sign up for a service through a direct message on social media.

Beware Mirror Accounts

Watch out for mirror accounts posing as other accounts. Often these accounts will ask for information or invite you to sign up for a fake giveaway where they may steal your personal information. Look out for misspelled usernames, a suspiciously low follower count, and fishy bios. Report fake accounts.

Though ATMs can be a convenient way to access your money, there are still safety precautions to consider when using an ATM. As issuers of ATMs, we want you to be aware of these safety concerns, so please read the following safety precautions.

Read more at https://www.southside.com/blog/post/atm-safety.

Remote Job Scams

Working from home can offer an appealing balance between the demands of your personal and work life. When looking for remote jobs, though, you will want to exercise caution with the opportunities you pursue.

With the rise in remote jobs, scammers have been updating their tactics to target people, specifically college students, who are looking for remote work. You will want to make sure the job you are applying for is legitimate. Read more at https://www.southside.com/blog/post/job-scams.

Influencer Job Scams

It’s fun to think about being an influencer with tons of followers who care what you think, but this is something that scammers love to prey on. It’s not uncommon for a scammer to send a direct message to someone and invite them to become a “Brand Ambassador” for a company that will pay them.

The FTC (Federal Trade Commission) describes what the scenario could look like: “A supposed recruiter contacts you out of the blue, claiming to be affiliated with a brand you recognize. The job offer sounds great — they say they’ll send you free products to promote online and pay you big money to show and tag their products in your social media posts. All you have to do, they say, is accept the offer and give them your personal and banking information so they can pay you. They want to sign you up before you can ask any questions. But that’s a scam to get your information and steal from you.” Read more at https://consumer.ftc.gov/consumer-alerts/2023/10/job-scam-targeting-influencers?utm_source=govdelivery.

Criminals take advantage of those looking for companionship. They prey on the emotions of individuals and form long lasting relationships.  Once trust is gained they ask for money and often leave the victim penniless.

How does it work?

This type of scam is very organized and carried out by a network of individuals. Victims are contacted via online dating websites, social media platforms or email. The criminals use fictitious identities and online profiles to carry out their scheme.  Once contact is established they get the victim to communicate privately outside the dating website or social media platform so that they can continue to gain more victims using that fraudulent profile. Criminals go to great lengths to gain the trust of the victim and maintain the relationship. They shower the victim with loving words, encouragements and at times send gifts. They will take months and often years to form these relationships. They will promise to come and visit but always have a reason why they never show up.

After a period of time and defenses are down they will ask for money. The fraudster will claim they are in the hospital and need assistance paying their bill. They may claim they have an ill family member or a financial hardship due to a failing business. If they promise to visit they will ask for money to cover the cost of the flight. They will ask for funds transfer, money orders, prepaid card or virtual currency. If you do not send the money immediately their messages or phone calls become more desperate. They always have new stories and always need more and more money. 

Many criminals will ask the victim to open accounts for them or accept funds into their established accounts at the financial institution. They tell the victim they want to send them money and the victim provides the online banking credentials and debit card information. Once they have access to the account the fraudster will deposit counterfeit checks via mobile deposit. Before the check has time to clear they ask the victim to send funds to someone else via funds transfer, money orders, prepaid cards or virtual currency. 

Many times they will use the victims account to funnel stolen funds. They will send checks, wire transfers, ACH credits or cash to the victim.  The funds are from others they are actively victimizing. Instructions are received to send the money to someone else believing they are helping their loved one. Eventually the money will make its way out of the country.

How can I protect myself?

• Never send money to someone you have not met in person
• Never agree to use your account to send and receive money for someone else
• Never give your account number, user names or passwords to someone
• Do an image search to determine if they are legitimate.  Often times the images used are from marketing ads.
• Lookout for spellings or grammatical errors
• Do not meet a prospective partner alone.  Always have someone with you and meet in a public place
• Do not travel overseas to meet a prospective partner
• Be careful of the information you share on social media platforms

Phishing is a form of criminal activity where individuals pose as legitimate entities to try to obtain or "fish" for personal information.

How does it work?

Individuals masquerade as legitimate companies and send what looks to be an official email, instant message, or fax requesting you "update" or "verify" credit card numbers, bank account information, Social Security numbers, passwords, and any other sensitive information. They will establish what financial institution you are affiliated with and send an official looking email from your bank to get account information.

"Pharming" - What is it?

Pharming is a criminal activity where a website's information is acquired and traffic on that website is directed to another location in order to obtain personal information.

How does it work?

If an individual wants to obtain information illegally they will set up a fraudulent website that looks like the real web site in almost every aspect. They will then use "phishing" tactics to entice people to the website to divulge personal information such as pin numbers, account numbers and passwords.

Please Note: Southside Bank will NEVER send an unsolicited email requesting you to verify your personal information.

How can I protect myself?

• Don't reply to emails from people or companies you don't recognize. Misspelled URLs are common deceptions as well as the @ symbol in web addresses.
• Contact the company cited in the email requesting your information by using a web address you know to be genuine.
• Avoid emailing personal and financial information. If you must, make sure you see the "lock" icon on your web browser's status bar before submitting any personal data. This "lock" icon signals that your information is secure during transmission.
• Be sure your virus protection software is current.

In order to protect our loved ones and ourselves, it’s important to be on guard for scams geared toward older Americans or signs that it has already happened. According to the World Health Organization, as many as six percent of our elderly are targeted, and much of this goes unreported.

Financial scams can be especially devastating as many of our elderly live on fixed incomes. Here are five key tips to avoid being the victim of a senior scam.

Never pay for anything you have no memory of ordering. You should also avoid giving out personal information to unknown third parties.

Work with financial institutions that have fraud protections in place. This makes it easier to protect your credit card and banking information.

Never let a stranger in your house. Instead, ask them to leave their business card and say your spouse, child or lawyer will be in touch.

Be wary of family or caregivers with alcohol or drug problems. Unfortunately, the desperation caused by addiction could cause even someone you know and love to victimize you.

Additionally, watch for some of the following signs that a scam has already impacted your elderly family members such as: 

• Unusual changes in bank account or money management
• Unusual or sudden changes in a will or other financial documents
• Suspicious signatures on financial documents
• Unpaid bills, especially those that have been routinely paid in the past

Every consumer should be aware that Internet fraud is on the rise and should take precautions when purchasing or selling on the internet. In each of the scenarios counterfeit checks are sent and good money is wired out leaving the customer at a loss. These are current examples of the types of scams that are being played out upon unsuspecting people.

Scenario 1  - Online Sale Scam

The victim has an item for sale on a public forum. A prospective buyer makes contact with the seller claiming they want to purchase the item. The seller receives a check in the mail for more than the asking price. The buyer claims he made the check payable for the wrong amount by mistake or claims the funds are to pay for shipping. The victim is instructed to deposit the check and send the difference via funds transfer, money order or prepaid cards or give to the shipper directly when they pick up the item. Days later the check  is returned counterfeit and the seller is out the difference and no longer has possession of the item.

Scenario 2  - Lottery/Sweepstakes Scam

The victim receives a certified mailing with a letter claiming you they are the winner of a lottery or a sweepstakes. Enclosed with the letter is a check to pay taxes or fees on the winnings.  The victim is instructed to deposit the check and send the proceeds via funds transfer, money order or prepaid cards. Days later the check is returned counterfeit and the victim is out the amount of the check.

Scenario 3  - Work From Home Scam

The victim is searching the Internet for job opportunities when they come upon a website claiming they can work from home as a "bookkeeper"  or a “mystery shopper." To make the job appear more legitimate the business will send employment contracts and other documentation. Shortly after the victim is employed the company sends a check with instructions to deposit the check, keep a percentage of the money, send the remainder via funds transfer, money order or prepaid cards back to them. Days later the check is returned counterfeit and the victim is out the amount of the check.

Scenario 4  - Inheritance Scam

A victim is contacted via social media, email or mail from someone claiming that a relative overseas has left them a large inheritance. In order to get the inheritance they must pay taxes.  To assist the victim with the tax payment a check is mailed with instructions to deposit the check and send the funds via funds tranfers, money order or prepaid card. Days later the check is returned counterfeit and the victim is out the amount of the check. 

How can I protect myself?

• Use extreme caution when dealing with someone who contacted you via mail, email or social media.
• Let your customer service representative know the circumstances behind the check and ask the bank to help you verify the check.
• Beware of "fast cash" opportunities or "no experience required" job postings.
• Do not send funds until you have confirmed the check has paid at the issuing bank. Typically it take 3-5 business days for a check to pay, even though your financial institution has already credited your account.
• You cannot win a lottery or sweepstakes that you did not enter.
• Always remember...If it sounds too good to be true, it probably is!

What is it?

It is the act of using someone's personal information illegally and without their knowledge to obtain bank accounts, credit cards, loans, make purchases or file false tax returns. The victim usually does not know this has occurred until they receive a past due or delinquent notice for items that have been purchased in their name or they attempt to file their tax return.

How do they get my information?

These are just a few of the ways thieves can obtain your information.

• Internet scams are used to acquire the information by claiming to be your financial institution wanting you to "update" or "confirm" private information.
• They will break into your car or home and take your wallet or other personal documents such as social security card and driver license.
• They will complete a change of address form to have your mail redirected to another location.
• They gain access your computer through phishing schemes.
• They call you on the telephone and trick you into giving your account number out over the phone.
• They will compromise your email account.

What can I do to protect myself?

• Make sure the websites are legitimate and secure before giving out any of your information online.
• Keep your bank documents and any other personal information in a secure location.
• Shred private documents such as bank statements or credit card statements. Do not just throw them away.
• Reconcile your bank statement regularly to watch for any unauthorized transactions.
• Check your credit report annually.
• Do not give confidential information in response to an email or a phone call. Banks do not request this type of information.
• Use strong passwords and change them often.
• Limit the personal information you share on social media websites or apps.
• Use caution on public wireless networks.
• If you are active military place an “Active Duty” alert on your credit report before you deploy.

If I become a victim, what should I do?

• Report it immediately to the proper authorities.
• Notify your financial institution and any creditors.
• Notify the Federal Trade Commission, by calling 877.382.4357 or online at www.consumer.gov/idtheft.
• Notify government agencies such as the Post Office and Social Security Administration.
• Notify any credit bureaus and credit reporting agencies.

Ask your customer service representative for information about Southside's Identity Secure product.