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.

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.

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.

Purchasing a home is one of the most significant financial decisions you’ll make in your lifetime. It’s a complex process that requires careful planning, precise financial management, and access to the right resources. One of the most crucial partners you’ll need in this journey is a reliable banker.

Expert Guidance on Financing Options

A reliable financial advisor like your American Federal Banker possesses a deep understanding of various mortgage products, interest rates, and financing options. They can help you navigate the complex landscape of home loans, explaining to you the pros and cons of each option. Whether you’re considering fixed-rate, adjustable-rate, or government-backed loans, a knowledgeable banker can guide you to the financing solution that best aligns with your financial goals.

Pre-Approval for Better Negotiation

Obtaining pre-approval for a mortgage is a critical step in the home buying process, and a reliable banker can assess your financial situation, including your credit score, income, and debt-to-income ratio, to determine how much you can afford. This pre-approval strengthens your position as a buyer, allows you to negotiate confidently, and demonstrates to sellers that you are a serious and financially capable buyer.

Personalized Financial Planning

At American Federal, we go beyond merely providing a mortgage. We’ll work with you to create a personalized financial plan that considers both your short-term and long-term goals. This might include discussing the impact of the mortgage on your overall financial health, advising you on down payment strategies, and helping you understand the costs associated with homeownership.

Problem Solving and Support

Sometimes, unexpected challenges can arise during the home buying process. Perhaps there are issues with the property appraisal, or your financial situation changes. Your American Federal Banker will be your advocate, helping you navigate these challenges and providing solutions to keep the purchase on track.

More than a Mortgage

Working with a reliable banker is not just about securing a mortgage – it’s about gaining a trusted partner who will guide you through the complexities of the home buying process, provide expert advice, and look out for your financial interests. As you embark on your home buying journey, count on your American Federal Banker to ensure that you make one of life’s most significant investments with confidence and peace of mind.