Accurate Customer Information – Why it’s Important

Man holding iPhone

With all the complexities that revolve around money and finances, having up-to-date personal information on file at your bank may seem like an afterthought. However, there are actually many important reasons for ensuring it is accurate.

Verifying Identity

Your personal information is used to verify your identity. By maintaining accurate records, we can verify customer identities and detect suspicious activities easier. 

Contacting You Quickly

Having your updated contact details on file enables us to quickly reach out to you in case of potential fraud attempts. In today’s digital world, every second counts. Being able to reach you quickly helps lower your risk of being a fraud victim.

A Smooth Customer Experience

An important quality of delivering exceptional customer service lies in having access to current customer information.  Whether it’s notifying you about account updates, offering personalized recommendations, or resolving inquiries promptly, having accurate data enables banks to deliver you smooth and personalized experiences.

So while it may seem like a minor issue, making sure that your information on file is up to date has its benefits. Contact your local office or your American Federal Banker for more information.  

Six Security Red Flags

Notepad with 'Scam' written on it surrounded by money

October is Cybersecurity Awareness Month. In honor of it, below are six security red flags that should always cause you to put your guard up when you see them.

Urgency

Scammers often pressure you to act immediately. Watch out for ‘limited time opportunities’ or language that you ‘must act now’.

Scare Tactics

Scammers will often threaten you with arrest, fines, audits, or other uncomfortable situations to trick you. Pretending to be with the IRS or police is a common scare tactic.

Odd Payment Methods

Asking you to pay by wire, with gift cards, with crypto (such as Bitcoin) or other uncommon methods can indicate a scam.

Requesting Personal Information

Banks, Financial Institutions and the IRS will never call you and ask for your personal information or passwords. Learn more about this at banksneveraskthat.com.

Requiring Money Up-Front

Scammers will claim you need to pay money upfront to cover shipping, taxes, or other costs to receive a prize you ‘won’. In all likelihood, there is no prize and they will take your money and run.

Pretending to be Your Bank

If you receive a call from your bank that seems suspicious, hang up and call your bank on a known number. Banks will not call you and ask for personal or account information.

You’ll find these red flags and more cybersecurity resources on our Security and Fraud Prevention page, and you can also call your local office with any security-related questions.

Common Cryptocurrency Scams

Lighted laptop keyboard

Cryptocurrency, with its promise of decentralized finance and digital wealth, has captured the attention of millions of investors worldwide. However, its rapid growth and the complexity of blockchain technology have also made it a prime target for scammers. Understanding the common scams in the cryptocurrency space is essential for protecting your assets and avoiding falling victim to fraudulent schemes. Below are some of the most prevalent cryptocurrency scams and how they operate.

Ponzi Schemes

Ponzi schemes in the cryptocurrency world typically promise high returns with little to no risk. These schemes often ask for an initial investment in Bitcoin or another cryptocurrency and offer rewards that seem too good to be true. Early investors are paid with the funds from new investors, creating the illusion of profitability. However, once the flow of new investments slows down or halts, the scam collapses, and the organizers disappear with the remaining funds.

Be wary of promises of guaranteed or unusually high returns, a lack of transparency about how profits are generated, and promoters urging you to recruit others to join.

Fake Initial Coin Offerings (ICOs)

Initial Coin Offerings (ICOs) were a popular fundraising mechanism for cryptocurrency projects, particularly during the 2017 crypto boom. However, the unregulated nature of ICOs made them ripe for scams. Fraudulent ICOs promote fake projects to lure investors into contributing funds, typically in the form of Bitcoin or Ethereum. Once enough funds are collected, the organizers disappear, leaving investors with worthless tokens.

Red flags can include unclear or unrealistic whitepapers, a lack of information about the project, and excessive hype without substantive technological backing.

Fake Crypto Exchanges and Wallets

Some scammers create fake cryptocurrency exchanges or wallet apps that look nearly identical to legitimate ones. When users sign up or try to transact, they unwittingly transfer funds to the scammer’s account. These fraudulent exchanges and wallets can be hard to distinguish from genuine services, especially for inexperienced users.

Pump and Dump Schemes

Pump and dump schemes are commonly found in low-volume or obscure cryptocurrencies. Scammers artificially inflate the price of a token by spreading misleading news or information, convincing investors to buy. Once the price surges, the scammers sell off their holdings at a profit, causing the token’s value to plummet, and leaving investors with significant losses.

Be wary of sudden and unexplained surges in a token’s value, heavy promotion of a token in forums or social media groups, and claims of “guaranteed” returns on a little-known or new token.

Giveaway Scams

In giveaway scams, fraudsters pose as reputable figures or companies on social media and claim to be giving away cryptocurrency. They may ask you to send a small amount of cryptocurrency first to “verify” your wallet address, with the promise of sending you a much larger amount in return. Of course, once you send the funds, you receive nothing back.

How to Protect Yourself

  • Do your research: Before investing in any cryptocurrency, thoroughly research the project, the team behind it, and reviews from reputable sources.
  • Verify URLs: Ensure that the website or exchange you’re using is legitimate by double-checking the URL.
  • Use two-factor authentication: Enable two-factor authentication on your cryptocurrency accounts to add an extra layer of security.
  • Avoid sharing sensitive information: Never share your private keys, passwords, or other sensitive data with anyone.
  • Be skeptical of unsolicited offers: If someone contacts you out of the blue with investment opportunities or giveaways, it’s likely a scam.

Cryptocurrency can offer potential for financial gains, but it also comes with significant risks. By staying informed and vigilant, you can protect yourself from these common cryptocurrency scams and make smarter decisions in the world of digital assets.

Avoiding Tax-Related Scams

Tax Related Scams

Tax season can be a stressful time for many individuals and businesses. Unfortunately, it’s also a prime opportunity for scammers to prey on unsuspecting taxpayers. With the rise of digital communication and sophisticated tactics, tax scams have become increasingly prevalent. However, arming yourself with knowledge and awareness can be your best defense against falling victim to these schemes.

Tax scams come in various forms, but some of the most prevalent ones include:

Phishing Emails

Scammers send emails posing as legitimate organizations such as the IRS or tax preparation software companies, asking recipients to click on links or download attachments that contain malware or request personal information.

Phone Scams

Fraudsters impersonate IRS agents and call taxpayers, demanding immediate payment for taxes owed or threatening legal action, arrest, or deportation if payment is not made.

Identity Theft

Thieves steal personal information, such as social security numbers or bank account details, to file fraudulent tax returns and claim refunds.

Fake Charities

Scammers set up fake charities to solicit donations from taxpayers, promising tax deductions for contributions that never benefit legitimate causes.

 

Protecting yourself from tax scams requires vigilance and caution. Here are some essential tips to keep in mind:

Verify Communication

The IRS typically communicates with taxpayers via postal mail, not email or phone calls. Be wary of unsolicited emails or calls claiming to be from the IRS. Never provide personal information over the phone or via email.

Use Reputable Tax Preparation Services

If you use tax preparation software or services, make sure they are reputable and secure. Avoid unknown or unverified tax preparers, especially those who promise unusually high refunds or charge exorbitant fees.

Secure Your Personal Information

Safeguard your personal and financial information by using strong, unique passwords for online accounts and avoiding sharing sensitive data on unsecured websites or over unencrypted connections.

Be Skeptical of Demands for Immediate Payment

The IRS will never demand immediate payment over the phone or via email, nor will they threaten legal action, arrest, or deportation for unpaid taxes. If you receive such a call or email, it’s likely a scam.

Monitor Your Accounts and Credit Report

Regularly review your bank and credit card statements for unauthorized transactions and monitor your credit report for any signs of identity theft or fraudulent activity.

Tax scams are a serious threat that can result in financial loss and identity theft for unsuspecting taxpayers. By staying informed, remaining vigilant, and following the tips outlined above, you can protect yourself from falling victim to these fraudulent schemes. As always, don’t hesitate to contact your American Federal banker with any questions.

The Importance of Having a Passcode on Your Mobile Phone

Phone Lock Graphic

Our lives are intertwined with technology, and our smartphones contain a treasure trove of personal information. From sensitive emails and messages to financial transactions and family photos, the data stored on our mobile phones is invaluable and, unfortunately, vulnerable. One simple yet powerful way to protect yourself and your smartphone is by setting up a passcode. Why is this important?

It Helps Prevent Identity Theft

With the rise of digital connectivity, identity theft has become a prevalent threat. Without a passcode, anyone can potentially gain access to your email, social media accounts, and more. A passcode acts as a barrier, thwarting attempts to impersonate you and preventing unauthorized access to accounts that could lead to identity theft.

It Helps Secure Your Financial Information

Mobile phones are increasingly used for financial transactions, and without a passcode your financial information is at risk. Fraudsters could potentially access your accounts and actually move money out of them. Setting up a secure passcode ensures that even if your phone falls into the wrong hands, access to your financial accounts is restricted, protecting your hard-earned money from potential theft.

Preventing Unauthorized Purchases

Many mobile users link their devices to app stores and online marketplaces. Without a passcode, unauthorized individuals, especially children, may inadvertently make purchases using your accounts. A passcode acts as a safeguard, preventing unintended transactions and saving you from potential financial headaches.

Safeguarding Confidential Work Data

For professionals who use smartphones for work-related tasks, a passcode is essential for protecting sensitive business information. From emails to documents, a passcode ensures that your work-related data remains confidential and inaccessible to prying eyes.

Deterrence Against Theft

A passcode not only protects your data, but also serves as a deterrent against theft. Thieves are less likely to target smartphones with passcodes, as the added security makes unauthorized access more difficult, which reduces the appeal of stolen devices.

Lock it Up!

Setting up a passcode on your mobile phone is not just a routine security practice; it’s a proactive step towards safeguarding your digital identity, financial well-being, and personal privacy. As we navigate the intricacies of the digital age, let a passcode be your first line of defense in securing the gateway to your digital world.

If you need assistance setting up a passcode for your please contact your local office

Avoiding Spring Break Travel Scams

Tropical Beach

As spring approaches, many are eagerly anticipating the much-needed break that comes with it. For college students and families alike, spring break offers a chance to unwind and explore new destinations. However, it’s crucial to remain vigilant against potential scams that can make a dream vacation turn bad.

Spring break travel scams come in various forms, targeting unsuspecting travelers who may be too caught up in the thrill of the moment to notice red flags. From fraudulent accommodations to fake tour packages, here’s what you need to know to safeguard yourself against these scams:

Bogus Accommodation Listings

One of the most common scams involves fake accommodation listings on popular booking websites. Scammers create enticing listings for vacation rentals or hotels at unbeatable prices. However, once payment is made, the accommodation either doesn’t exist or it’s not as advertised. To avoid this, always book through reputable websites and read reviews from previous guests.

Phony Travel Packages

Be wary of travel agencies or websites offering all-inclusive spring break packages at unbelievably low prices. These deals often come with hidden fees, poor accommodations, or nonexistent amenities. Before booking any package, research the company thoroughly, check reviews, and verify its legitimacy.  

Fake Excursions and Tours

When booking excursions or tours at your destination, be cautious of overly aggressive vendors or tour operators. Some may promise exclusive experiences or low prices to lure tourists, only to deliver subpar services or disappear with your money. Stick to reputable tour companies recommended by trusted sources, such as your hotel or well-known travel websites.

ATM Skimming

While traveling, be vigilant when using ATMs, especially in tourist-heavy areas. Skimmers can install devices on ATMs to steal your card information, compromising your bank account. To minimize the risk, use ATMs located within banks or reputable establishments, and always cover the keypad when entering your PIN.

Wi-Fi Scams

Public Wi-Fi networks in airports, cafes, or hotels can be breeding grounds for hackers looking to steal personal information. Avoid accessing sensitive accounts or making online purchases while connected to unsecured Wi-Fi networks. Instead, use a virtual private network (VPN) for added security or rely on your mobile data. 

Identity Theft

Whether booking flights, hotels, or activities online, always use secure websites with HTTPS encryption. Avoid sharing sensitive information, such as your Social Security number or passport details, unless absolutely necessary. Monitor your bank and credit card statements regularly for any unauthorized transactions. 

While spring break is a time for relaxation and adventure, it’s essential to remain vigilant against potential scams that can ruin your vacation experience. By staying informed, researching thoroughly, and trusting your instincts, you can ensure a safe and enjoyable spring break getaway. Remember, if an offer seems too good to be true, it probably is. Stay safe and have a fantastic spring break!

If you have any questions or concerns, please contact your local office

Triangulation Fraud: Protect Yourself this Holiday Season

Woman shopping online with laptop

Fraudsters are constantly finding innovative ways to exploit vulnerabilities and steal your money. One fairly new method gaining prominence is triangulation fraud, a deceptive practice that puts both consumers and businesses at risk. In these final days before Christmas, remember to be extra careful when shopping online.

What is Triangulation Fraud?

Triangulation fraud involves a fake retail website set up by fraudsters, an unsuspecting customer, and a legitimate retailer. Here’s the basic process:

  1. Fraudsters create a fake retail website that attracts unsuspecting customers with name-brand products at ‘too good to be true’ prices.
  2. Once a customer places an order, the fraudsters purchase the desired product from a legitimate source using stolen credit card information from a previous shopper.
  3. The customer’s credit card is billed for the ‘too good to be true’ price and the item is shipped from the legitimate seller to the customer. This creates the illusion of a genuine transaction.

If the customer receives the item, why is this bad?

This is bad for a number of reasons. First off, the fake retail site is using stolen credit card information to complete the transaction. Second, if you’re the customer in this scenario, the fake retail website now has your credit card information as well, which will be used in future fraudulent transactions, both to rip you off and to fool other customers. Likewise, customers fooled into thinking that this is a legitimate transaction often leave glowing reviews on the fake retail site, thus perpetuating the scam. The scam also causes reputational damage to legitimate retailers and erodes overall trust in online transactions.

Why is it more common during the holiday season?

Criminals typically schedule the scheme for the holiday season because merchants are less alert to suspicious delivery behavior. It is not uncommon for gift purchases to be shipped somewhere different than the billing address. Likewise, shoppers are typically more concerned about if they received the item as oppose to from where it was shipped.

How to protect yourself:

Be alert! Consumers should exercise caution when encountering online deals that seem too good to be true. Thoroughly research the legitimacy of the e-commerce platform and check for customer reviews before making a purchase.

Use secure payment methods whenever possible. Credit cards often provide additional layers of protection against fraudulent transactions, so they are typically safer than debit cards for online transactions.

Report suspicious activity. If you come across a suspicious website or believe they have fallen victim to triangulation fraud, report the incident to relevant authorities and their financial institution.

Triangulation fraud poses a significant threat to both consumers and legitimate businesses operating in the online marketplace. As technology evolves, so too do the tactics of fraudsters. Awareness, vigilance, and education are crucial in combating this type of deception. By staying informed and taking precautionary measures, you as a consumer can protect your money while contributing to the collective effort to create a safer online environment.

Your Bank is Calling… Or Are They?

woman checking her balance on her phone in a cafe

In 2022, scammers stole over $8.8 billion from regular people. Don’t become their next victim.

Phishing via calls and texts are more prevalent than ever. Watch for these four red flags:

  1. They ask you to open a link
  2. They use urgent or fear-inducing language
  3. They request personal info like PINs, passwords, Social Security numbers, or access codes delivered through email, text or voice
  4. They pressure you to log into or send money with payment apps

Phone Call Scams

Scammers sometimes try to cheat you out of your money by impersonating your bank over the phone. In some scams, they act friendly and helpful. In others, they’ll threaten or scare you. Scammers will often ask for your personal information or get you to send them money. Banks never will.

Watch out for a false sense of urgency

Scammers count on getting you to act before you think, usually by including a threat. Banks never will. A scammer might say “act now or your account will be closed,” or even “we’ve detected suspicious activity on your account” — don’t give into the pressure.

Never give sensitive information

Never share sensitive information like your bank password, PIN, or a one-time login code with someone who calls you unexpectedly — even if they say they’re from your bank. Banks may need to verify personal information if you call them, but never the other way around. Your bank will never ask for your PIN, password, or one-time login code in when calling you.

Don’t rely on caller ID

Scammers can make any number or name appear on your caller ID. Even if your phone shows it’s your bank calling, it could be anyone. Always be wary of incoming calls.

Hang up – even if it sounds legit

Whether it’s a scammer impersonating your bank or a real call, stay safe by ending unexpected calls and directly dialing your bank instead.

Text Message Scams

Phishing text messages attempt to trick you into sharing personal information like your password, PIN, or social security number to gain access to your bank account. As long as you don’t respond to these messages and delete them instead, your information is safe. All you need to do is spot the signs of a scam before you click or reply.

Slow down – think before you act

Acting too quickly when you receive phishing text messages can result in unintentionally giving scammers access to your bank account — and your money. Scammers want you to feel confused and rushed, which is always a red flag. Banks will never threaten you into responding, or use high-pressure tactics.

Don’t click links

Never click on a link sent via text message — especially if it asks you to sign into your bank account. Scammers often use this technique to steal your username and password. When in doubt, visit your bank’s website by typing the URL directly into your browser or login to your bank’s mobile app.

Never send personal information

Your bank will never ask for your PIN, password, or one-time login code in a text message. If you receive a text message asking for personal information, it’s a scam.

Delete the message

Don’t risk accidentally replying to or saving a fraudulent text message on your phone. If you are reporting the message, take a screenshot to share, then delete it.

The bottom line: be careful!

Always be diligent when dealing with your money and access to your accounts. Remember that it’s OK to question the motives of someone contacting you unexpectedly. And as always, never hesitate to contact your local American Federal office with any questions or if something seems suspicious.

Avoiding Common Holiday Scams

Lighted laptop keyboard

The United States Department of Treasury’s Office of Cybersecurity and Critical Infrastructure Protection recently issued an advisory with tips for consumers to protect themselves from scams and fraud. From Cyber Monday to the rest of the holiday shopping season and beyond, it’s a good list of practices to follow to keep your money and information safe.

Follow these tips to avoid common holiday scams:

  • Buy only from reputable merchants.

  • Stay informed of common scamming tactics, share your knowledge with others, and remain skeptical of unsolicited calls, emails, and texts, especially those creating a sense of urgency.

  • Exercise caution when receiving unexpected phone calls and emails from your financial institutions, unsolicited texts, and embedded links. Confirm the legitimacy of requests by directly contacting the requesting entity through official channels.

  • Practice safe online behavior. Be cautious about the information you share online. Avoid oversharing personal details on social media platforms.

  • Don’t be pressured to purchase an item or pay for a service quickly. Take time to think, research, and talk to someone trusted. Fraud and phishing scams often capitalize on creating a sense of scarcity or fear of missing out. Legitimate businesses will give you time to decide.

  • Regularly monitor your financial and card credit statements for unauthorized or suspicious transactions. Report any discrepancies to the credit card or financial institution immediately.

  • If an online deal looks too good to be true, it likely is. Be suspicious. Scammers often offer products at significantly reduced prices. If a luxury item or an electronic device is offered at an extreme discount, it’s likely counterfeit or will never be delivered.

  • Don’t give out personal or account information to anyone who calls.

  • Don’t rely on caller ID. Criminals can fake their identities and locations on phone calls.

  • Never pay someone who insists you pay via a gift card or using a money transfer service. Also, never deposit a check and then send money back to someone.

  • Use a credit card to pay for online purchases. As required by law, credit card companies provide a fraud liability guarantee which limits liability for unauthorized charges to $50 ($0 if the card was stolen and the card company is notified prior to purchases being made).

  • Enable Two-Factor Authentication (2FA). Strengthen the security of your accounts with 2FA, making it harder for attackers to gain access.

  • Never allow permissions to an unknown app and use different passwords for each downloaded app.

  • When using money transfer services, be certain to validate who you’re sending money to and their contact details.

Stay Safe When Shopping Online

Woman Shopping on Laptop

Online shopping has become an integral part of our lives, offering convenience and access to a wide range of products and services. However, with the growth of e-commerce, online shopping scams have also proliferated. These scams can result in financial loss and personal information theft. To ensure a safe and enjoyable online shopping experience, it’s crucial to be aware of potential pitfalls and take precautions. Below are some effective strategies to avoid falling victim to online shopping scams.

Shop from Reputable Websites

The first rule of safe online shopping is to stick with well-known and reputable websites. Established e-commerce platforms like Amazon, eBay, Walmart, and official brand websites typically have robust security measures in place. Avoid unfamiliar websites that offer unbelievable deals, as these are often a front for scams.

Read Reviews and Ratings

Customer reviews and ratings can provide valuable insights into a product’s quality and the credibility of a seller. If a product has consistently negative reviews or no reviews at all, it may be a red flag. Be wary of sellers with low ratings or questionable histories.

Beware of Too-Good-to-Be-True Deals

Scammers often lure victims with incredibly low prices on popular products. If a deal seems too good to be true, it probably is. Compare prices across multiple websites to ensure you’re getting a fair deal.

Use Secure Payment Methods

When making a purchase, use secure payment methods such as credit cards or trusted digital payment platforms. Avoid wiring money, using gift cards, or sending cash as these methods offer little to no recourse in case of fraud. Credit cards often have built-in fraud protection that can help you recover your funds in case of unauthorized transactions.

Protect Your Personal Information

Never share more personal information than necessary. Legitimate online stores will usually only require essential information like your name, shipping address, and payment details. Be cautious if a website asks for excessive personal information or irrelevant details.

Keep Your Devices Secure

Ensure that your computer or mobile device is protected with up-to-date antivirus software and a strong firewall. Regularly update your operating system and browser to fix security vulnerabilities. Avoid using public Wi-Fi networks for shopping, as they can be less secure.

Verify Contact Information

Legitimate businesses provide clear and accessible contact information, including a physical address and a customer service phone number or email. Verify this information before making a purchase. Scammers often hide behind anonymity.

Be Cautious with Email Offers

Phishing emails often impersonate popular retailers and offer enticing deals to lure victims. Avoid clicking on suspicious links or downloading attachments from unknown senders. Instead, go directly to the retailer’s website by typing the URL in your browser.

Trust Your Instincts

If something feels off or too uncertain, trust your instincts and err on the side of caution. Online shopping scams rely on victims being in a hurry or making impulsive decisions. Take your time to research, verify, and make informed choices.

Conclusion

Online shopping scams are a real threat, but with vigilance and knowledge you can protect yourself from falling victim. By following these guidelines, you can enjoy the convenience of online shopping while safeguarding your financial and personal security. Stay safe, shop wisely, and enjoy the benefits of e-commerce while avoiding scams.