Security Center

Last Updated: 02/18/2010

Gas Pump Skimming Scam - 02/18/2010

Credit Union Times recently reported that criminals are now trying to steal a member's personal data (card number and PIN) by attaching a device to a gas pump to skim personal data. It has been reported that thieves are able to open a gas pump and insert a device that captures card numbers while a camera positioned nearby captures the cardholders' PIN. The fraudster then uses the stolen data on a counterfeit card and can then access an ATM to withdraw money from the CU member's account.

Recent losses have been reported around the Raleigh, NC area but this particular problem may continue to grow and CU's and their members need to be aware of this situation.

Read the full article

HAITIAN EARTHQUAKE RELIEF FRAUD ALERT

01/13/10 - The FBI today reminds Internet users who receive appeals to donate money in the aftermath of Tuesday’s earthquake in Haiti to apply a critical eye and do their due diligence before responding to those requests. Past tragedies and natural disasters have prompted individuals with criminal intent to solicit contributions purportedly for a charitable organization and/or a good cause.

Therefore, before making a donation of any kind, consumers should adhere to certain guidelines, to include the following:

Do not respond to any unsolicited (spam) incoming e-mails, including clicking links contained within those messages.
Be skeptical of individuals representing themselves as surviving victims or officials asking for donations via e-mail or social networking sites.
Verify the legitimacy of nonprofit organizations by utilizing various Internet-based resources that may assist in confirming the group’s existence and its nonprofit status rather than following a purported link to the site.
Be cautious of e-mails that claim to show pictures of the disaster areas in attached files because the files may contain viruses. Only open attachments from known senders.
Make contributions directly to known organizations rather than relying on others to make the donation on your behalf to ensure contributions are received and used for intended purposes.
Do not give your personal or financial information to anyone who solicits contributions: Providing such information may compromise your identity and make you vulnerable to identity theft.

Anyone who has received an e-mail referencing the above information or anyone who may have been a victim of this or a similar incident should notify the IC3 (Internet Crime Complaint Center) via www.ic3.gov

Fraudulent Investment Opportunity - 11/02/2009

We have been advised of an investment scam where fraudsters, posing as an African energy consortium, have presented an investment opportunity to a group of Credit Union members. The investment involved a renewable energy project (sunlight, wind, rain, tides, geothermal heat, etc.). Some proof was provided that these investment advisers/consultants were officers of the consortium. In hindsight, that proof appears to have been limited in nature and now looks very suspicious.

The members were sold on the plan and many applied for loans at their Credit Union as well as obtained cash advances on their credit cards, giving this money to the fraudsters to invest in this renewable energy project. After receiving the investment funds, the fraudsters skipped the area and the investors were left with only the worthless paper and the outstanding loan at their Credit Union.

Unfortunately, this type of scam is serious because of the dollars involved and the number of people who were duped. The losers in this scheme are the ones who fell for this bogus investment as this type of scam is not covered by any insurance company in the industry.

Mortgage Loan Modification Scams - 10/22/2009

A recent development in the ongoing subprime mortgage and foreclosure crisis is the emergence of a new type of business which purports to offer loss mitigation consulting, foreclosure prevention, mortgage loan modification, or similar services. Many states are seeing an increase in the of number of advertisements, direct-mail solicitations and other marketing materials offering consumers assistance in negotiating resolutions of their delinquent residential mortgage loans with lenders and servicers, or assistance in negotiating lower mortgage loan rates, in exchange for up-front fees.

Members who have fallen behind on mortgage payments or who are in foreclosure or default may become targets for certain types of scams known as "home equity theft" or "foreclosure rescue fraud." Perpetrators of these scams claim that they can solve debt problems and stop consumers from losing their home. Some of these scams offer to temporarily hold onto the house while consumers catch up on their payments. The perpetrator then uses deceptive tactics to obtain ownership of a consumer’s home for a fraction of its market value, and leaves the consumer homeless yet still holding the mortgage which is now in foreclosure.

Other scams falsely claim that they can stop a foreclosure or tax sale, charge substantial up-front fees and fail to deliver the promised results. Members should be advised they do not need to pay fees for foreclosure prevention help. Many not-for-profit HUD approved housing counselors will help members negotiate with their lender for free.

Members should be advised to explore all available options for requesting a mortgage loan modification. Encourage them to contact their own lender or mortgage servicer or a HUD approved housing counselor if they believe they will have difficulty in making their mortgage payments.

E-mail Scam - 10/02/2009

The Department of Homeland Security's Computer Emergency Readiness Team (CERT) is warning Internet users to be on guard against a convincing e-mail virus scam disguised as a message from auditors at the Internal Revenue Service.

CERT recently reported: "The attacks arrive via an unsolicited e-mail message concerning an inquiry by the IRS and may contain a link or attachment. If users click on this link or opens the attachment, they may be infected with a malicious code, including the Zeus Trojan."

The Zeus Trojan steals sensitive data, and it is especially interested in on-line banking credentials. According to Gary Warner, director of research in computer forensics at the University of Alabama, Birmingham, this fake IRS notice has been ongoing for several weeks now.

A word to the wise: Do not click on attachments included in unsolicited e-mails, especially those that encourage you to act quickly or suffer some scary fate. These are attempts to plant malicious software on your computer.

Also, note that the IRS has stated emphatically that it does not communicate with businesses or citizens via e-mail.