Text scams are on the rise. So Consumers fraud expert Kristy Desimone is here to share ways to keep yourself protected.

[music]

0:00:06.7 Lynne Jarman-Johnson (LJJ): Money, I’m Home! Hi there, I’m Lynne Jarman-Johnson with Consumers Credit Union. Thanks so much for joining us today. We have our special fraud podcast. I’ll tell you what, these have become the most sought-after information that we’ve got going with podcasts, and it’s because we have a certified fraud professional, Kristy Desimone. She’s with us again today. And Kristy, every month, you join us and tell us what kind of seems to be the trends that are going on. I did read some things about 2023 that I thought was very interesting, that digital fraud, which is something we’re going to talk a little bit about today, is expected to really take off in 2023. What exactly does digital fraud mean? Is that literally anything that could be maybe over mobile or your laptop?

0:00:53.5 Kristy Desimone (KD): Yeah, it’s any type of scam that requires you to use your laptop, your phone, email, text messaging, things of that nature, getting information that way.

0:01:04.2 LJJ: Well, if you don’t think that fraud doesn’t hit you, in 2022 FTC data had shown that consumers lost $8.8 billion in scams. And these are things we have been talking about that hit us right here, in Michigan, and hit our members, and even as we had a podcast, almost hit me. People should not be embarrassed by the fact that there are fraudsters and scammers out there that are getting much more smart and really trying to dig in deep. Today, let’s talk a little bit about something that I think is getting more prevalent, and that is text messaging. We have our phones with us all the time. What’s been happening in the text messaging world? Because a lot of companies now use text messaging, I mean, we do, to help people know where their accounts are, balances are and such, but all of a sudden now, how do you know you should trust that link?

0:02:02.5 KD: Yeah, so we shouldn’t click a link in a text message ever. So, I get them too. I had one this morning, supposedly from Amazon that my Amazon account had been suspended and to click on this link in order to get it unsuspended. Yeah, we’ve had financial institutions, so Navy Federal Credit Union texted me, but it wasn’t really them, it was a scammer saying that my accounts there had been put on hold. I don’t have accounts there. But for a moment, I was like, “Do I click this? Do I not?” Right? [chuckle] It gets you for a second. But yeah, what they’re trying to do is just get you to click that link and share information they can use to either steal your identity or get into your online banking here in order to get some type of fast cash scheme.

0:02:45.8 LJJ: When you get a link, what we always say is we’re never going to ask you for information, your social security, anything like that via texting. We’re going to be very careful to make sure that you know that… Look at, Consumers is only reaching out to you because you approved it, like, you stated, “I would like to get a text saying my balance is such and such,” or giving you info on, “I have a bill due.” But not, “Hey, we need access to your account like right now,” because that all of a sudden brings the red flags, right?

0:03:18.9 KD: Exactly. And they ask for your online banking credentials. So, a lot of consumers will think that that’s okay because it’s not your social security number, it’s not an account number, but when they get access to your online banking, they get access to all of that, because all of that is housed there, so all your account numbers, everything like that. So, they’re really trying to get that information without seeming like they’re fraudsters. They’re just trying to get in in a different way.

0:03:43.0 LJJ: Does it seem to be on the rise, even in the last month or so, Kristy? Have you seen that?

0:03:48.4 KD: Oh yeah, and that especially curtails with loans. So, people will say that they applied for a loan and they needed their online banking credentials to log in and deposit the funds, but that’s not how loan companies work, they typically send it to you from themselves, and they don’t need to log into your online banking to do that, they will have that information provided by you kind of deal. So yeah, loan, that is a big one right now.

0:04:14.2 LJJ: I hadn’t even thought about that. Especially, that sounds like when someone’s kind of searching and knowing you’re out looking for a loan, and so then all of a sudden, here comes the scammer.

0:04:25.0 KD: Exactly, like they are fishing for information. So sometimes they can just ask you and then by those answers to that question, they’re like, “Oh, you need a loan? I can get you a loan. Here’s an easy link to apply for a loan,” kind of deal. And a lot of times there are checks that are mobile-deposited, that are off of a computer or device, so they’re emailed, they’re taken with a screenshot and then deposited in and then you’re asked to send funds back.

0:04:51.3 LJJ: You know what, you had told me this 100 times, but it still bears repeating. If someone is saying to you, “Send funds back,” isn’t that the biggest red flag there is?

0:05:00.4 KD: Huge! So that’s where every single scam boils down to, is you have to send something back, you have to send some type of funds back through gift cards, Venmo, Apple Pay, that kind of stuff. If someone asked you to do that, you have to stop and say, “This does not make sense for me to have to do that.”

0:05:18.4 LJJ: So, in your line of work, every day you’re talking to members, are they afraid to talk about it sometimes because they’re embarrassed?

0:05:25.9 KD: They are. And the biggest thing is you’re not alone. Like you said, $8.8 billion people have been scammed out of funds. That is something that puts you in a boat with a lot of other people, and the only way to combat fraud at this level is education, and is talking to your financial institution about how to prevent it in the future. So, the last thing we want you to do is feel embarrassed, because we’re not trying to make you feel that way, what we really want is to understand how it happened and how we can prevent it in the future for you.

0:05:54.3 LJJ: When you bring up great topics about prevention, so on your phone, you have a computer that literally can help prevent fraud through different things, and our online banking explain like card alerts. How does that work?

0:06:08.7 KD: Yeah, so it’ll alert you when a transaction goes through, or sometimes you can set it for certain transaction amounts. So, I have mine set for anything above $100, so it’ll send me an alert and say, “Hey, this went through at $200. Is this you?” And if it’s not, you can immediately reach out to us and we can put your card on hold and look into it and that kind of deal. So those alerts really help because they keep you focused without having to check every day, they’re helping behind the scenes and will alert you when something’s out of the ordinary.

0:06:39.8 LJJ: That’s what I love, is the fact that you really can look at your accounts, and you should be looking at your accounts.

0:06:46.5 KD: Yes. [chuckle]

0:06:47.4 LJJ: I remember one time I was on vacation, and all of a sudden, I looked and I thought, “Man, my debit card seems kind of low. I don’t think I’ve been shopping that much.”

0:06:58.3 KD: Right. [laughter]

0:07:00.7 LJJ: And all of a sudden, I looked and there was two different pizza companies from New York City that somebody had gotten in and they had purchased, like, $500 on one and, like, $200 on the other, and I’m like, “What?”

0:07:16.4 KD: Right. [chuckle]

0:07:17.7 LJJ: Immediately, we got it shut down, closed it and away we went, but holy cow, you just don’t… You have to be yourself very conscious of what’s going on with your money.

0:07:30.7 KD: Right. And it’s not a matter of if you’re going to get scammed, it’s a matter of when you’re going to get scammed. And when you are following the right steps to talk to us and communicate with us effectively and quickly, it’s going to be the best way to prevent that from blowing up into a big fraud scheme. And also, it helps you educate yourself so that if you are seeing a trend or you see a red flag, you acknowledge it and then stop the behavior before you do it.

0:07:56.4 LJJ: And obviously, not only are we available via phone, you can walk into any office and you can talk with somebody. They can also show you how to set up alerts and really get you comfortable with this digital world that we now live in that seems to want to take our money sometimes.

0:08:16.5 KD: Exactly. Yeah. Talking to us is easy. Sometimes over the phone can be hard, so if you want to come in and sit down with a cup of coffee, like, we are always more than willing to do that, and the coffee is always hot. [chuckle]

0:08:27.3 LJJ: It is always hot and is really good.

0:08:28.4 KD: Yep. [chuckle]

0:08:29.7 LJJ: Well, listen, don’t forget, you can stop in our call. Or if you have any questions at all about fraud, please send them our way and we will answer them here on our monthly podcasts regarding fraud. Kristy, thank you so much for being with us today.

0:08:42.9 KD: Thank you. Can’t wait for next month. [chuckle]

0:08:46.1 LJJ: And thank you, Jake Esselink, for your production skills. We look forward to hearing from you with your thoughts on how to prevent fraud in your life. I’m Lynne Jarman-Johnson. Money, I’m Home! With Consumers Credit Union.

[music]