Artificial Intelligence is doing a lot of good, but it’s also leading to an increase in fraud.
Fraud Awareness Week is a good time to warn the public about that. Gesa Credit Union has sent out a news release on seven common scams. In general, if it sounds too good to be true, it probably is.
Phishing: Fraudsters send emails or texts impersonating financial institutions, asking for sensitive information. To avoid being fooled: Always verify the sender’s email address and avoid clicking on suspicious links; Never provide personal information through email or texts; Set up text or email notifications for account activities to identify unauthorized access.
Card skimming: Sophisticated devices capture card details at ATMs and points of sale. To avoid being scammed: Inspect ATMs and card readers for any unusual devices before using them; Cover the keypad when entering your PIN; Monitor your accounts for unauthorized transactions and report any immediately.
Impersonation fraud: Scammers pose as financial representatives or loved ones to obtain login information. To avoid problems: Verify the identity of callers by contacting your financial institution; If you have concerns that your debit or credit card may have unauthorized activity, log onto your account and restrict/block your card; Do not click on links provided via text or email; Note that voice technology enables fraudsters to impersonate friends/family. Be cautious of any unexpected or unusual requests, including from people claiming to be friends or family.
Account takeover: Criminals use stolen credentials to access accounts and simulate user behavior. To avoid that: Use strong, unique passwords for all online accounts and change regularly; Enable multi-factor authentication when possible; Set up text or email notifications for account activities to identify unauthorized access; Monitor accounts and report issues immediately; Do not allow anyone to access your computer remotely.
Social engineering: Fraudsters manipulate people into sharing confidential information, often using AI to mimic known voices. To avoid scams: Be cautious of unsolicited requests for personal information, even if they appear to come from someone you know; Verify unusual requests through alternative communication methods, such as calling the person; Educate yourself on common social engineering tactics and stay vigilant.
Check Fraud: Counterfeit checks trick people into depositing funds, leading to potential losses. To avoid being fooled: Verify the legitimacy of checks before depositing them; Use secure and verified payment methods when possible; Regularly review your account statements for discrepancies and report suspicious activity.
Investment Scams: Scammers promote fake investment opportunities promising high returns. To avoid problems: Research any investment opportunity before committing funds; Consult financial advisors to verify legitimacy of investment offers; Be wary of unsolicited investment opportunities and promises of guaranteed returns; If a scenario feels rushed or urgent, it’s likely a malicious actor using common sales tactics. When in doubt, collect their contact information, and revert after doing research.
