More Scams

Knowledge is Your Best Defense

Ensuring the security of our Members’ information and providing valuable educational information are priorities for RCU.

• ATM Tampering
• Fake Check Scams
• Fake Escrow Accounts
• Financial Abuse - A Growing Concern Among Elders
• Fraud Alert Questions - Have you been scammed?
• Internet Auction Fraud

Fake Escrow Accounts

Usually used for expensive transactions, an escrow service, for a fee, acts as an intermediary between a buyer and seller. (Typically, the services hold onto the money until the buyer confirms the merchandise has arrived as advertised, thus greatly reducing the buyer's risk.) The trouble with escrow sites is that the vast majority are fraudulent according to the U.S. Federal Trade Commission (FTC).

• Be suspicious of an escrow service site that claims to be affiliated with the government or that follows “U.S. Financial and Business Code.” No such code exists.
• Find out if the service is licensed and bonded. Get the business' physical address from the Web site and check its licensing with state officials. If the escrow service provides no address, avoid it.
• A legitimate escrow site would NEVER send you an email telling you to either send your money or or your product to the other party.
• Always trust your gut feeling. If you get a bad feeling about something, trust you instincts, don't do the deal. Others will come along later.

Internet Auction Fraud

Many of the cases involve straightforward scams where consumers allegedly “won” the bid for merchandise through an Internet auction Web site, sent in their money, but never received the merchandise.

Remember: Be familiar with the auction site.
• Before bidding find out all you can about the seller. Avoid doing business with sellers you can't identify, especially those who try to lure you off the auction site with promises of a better deal.
• Protect your privacy. Never provide your Social Security number, driver's license number, credit card number, or bank account information until you have checked out the seller and the online payment or escrow service, if you're using one, to ensure legitimacy.
• If you have problems during a transaction, try to work them out with the seller, buyer or site operator. If that doesn't work, file a complaint with your state attorney general's office and the FTC call toll-free 1-877-FTC-HELP (1-877-382-4357).

Counterfeit Checks, Foreign Cashier's Checks

Some online sellers of high priced goods receive requests from buyers in foreign countries (often in Africa) to accept foreign cashier's checks as payment for their items. Some of the requests offer to “overpay” for an item, and ask the seller to wire the overpayment back to the buyer through services such as Western Union or MoneyGram.

Online sellers are urged to use extreme caution when accepting foreign cashier's checks for high priced items, as such foreign checks may take weeks or months to clear and may be counterfeit. By the time the seller is informed that the check was indeed counterfeit, the buyer has already received their goods, as well as the overpayment refund.

Note: Although contrary to popular belief, secure credit card transactions are considered the safest means of making and accepting online payments.

Report Email Abuse

If you receive suspicious email communications, please forward a copy via email to: fraud@redwoodcu.org. Should you have additional questions, please contact our Member Service Center at 1 (800) 479-7928.

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