Frauds and Scams

Cyber crime includes more than fraudulent e-mail messages and fake websites that allow criminals to take your money. A cyber crime may involve tactics using ransomware, where criminals lock you out of your files until they receive a ransom, or phony phone calls, such as criminals pretending to represent a tech support company so they can get your information.

Protect yourself from a range of cyber crimes by taking these precautions:

• Use a firewall to protect your computer.
• Encrypt your home Wi-Fi network.
• Back up your files regularly.
• Create strong passwords and share them only when necessary.
• Don’t respond to spam e-mails.
• Download with caution.
• Monitor your financial accounts regularly for fraudulent activity.
• Don’t visit suspicious websites or follow links to sources you don’t trust.
• Keep your computer current by updating antivirus software, antispyware, operating system, and system patches.
• Don’t share your personal information with sources you don’t trust, especially pop-ups.
• Have different passwords for work related and non-work related accounts.
• When you’re not using your computer, turn it off.
• Don’t give control of your computer to an unauthorized third party.

The Federal Bureau of Investigation maintains a list of Cyber Crime Stories.(opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) Be aware of the latest cyber scams by checking this list and searching the Internet for the most recent cyber scams.

If you are a target of cyber crime, contact your financial institution immediately. Then, report the crime to the Internet Crime Complaint Center(opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) (IC3), a joint government collaboration. The IC3 links complaints together to refer them for case consideration. It also uses data to identify emerging trends and patterns.

Scammers sometimes pretend to be government officials to get you to send them money. They might promise lottery winnings if you pay “taxes” or other fees, or they might threaten you with arrest or a lawsuit if you don’t pay a supposed debt. Regardless of their tactics, their goal is the same: to get you to send them money.

Don’t do it. Federal government agencies and federal employees don’t ask people to send money for prizes or unpaid loans. Nor are they permitted to ask you to wire money or add money to a prepaid debit card to pay for anything.

Before you get caught in this type of scam, look for indicators:

• You’ve "Won" a Lottery or Sweepstakes - Someone claiming to be a government official calls, telling you that you’ve won a federally supervised lottery or sweepstakes.
• You Owe a Fake Debt - You might get a call or an official-looking letter that has your correct name, address and Social Security number. Often, fake debt collectors say they’re with a law firm or a government agency — for example, the FTC, the IRS or a sheriff’s office. Then, they threaten to arrest you or take you to court if you don’t pay on a debt you supposedly owe.

Five Ways to Beat a Government Imposter Scam:

1. Don’t wire money.
2. Don’t pay for a prize.
3. Don’t give the caller your financial or other personal information.
4. Don’t trust a name or number.
5. Put your number on the National Do Not Call Registry. Register your phone number at donotcall.gov(opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) .

Some companies offering debt settlement programs may not deliver on their promises, like their “guarantees” to settle all your credit card debts for 30 to 60 percent of the amount you owe. Other companies may try to collect their fees from you before they settle any of your debts. The Federal Trade Commission’s Telemarketing Sales Rule (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) prohibits companies that sell debt settlement and other debt relief services on the phone from charging a fee before they settle or reduce your debt. Some companies may not explain the risks associated with their programs, including that many (or most) of their clients drop out without settling their debts, that their clients’ credit reports may suffer, or that debt collectors may continue to call them.

Before you enroll in a debt settlement program, do your homework. You’re making a big decision that involves spending a lot of your money that could go toward paying down your debt. Enter the name of the company name with the word "complaints" into a search engine. Read what others have said about the companies you’re considering, including whether they are involved in a lawsuit with any state or federal regulators for engaging in deceptive or unfair practices.

Advance Fee Loans

Some companies guarantee you a loan if you pay them a fee in advance. The fee may range from $100 to several hundred dollars. Resist the temptation to follow up on these advance-fee loan guarantees. They may be illegal.(opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)  It’s true that many legitimate creditors offer extensions of credit through telemarketing and require an application or appraisal fee in advance. But legitimate creditors never guarantee that you will get the loan – or even represent that a loan is likely. Under the FTC’s Telemarketing Sales Rule, a seller or telemarketer who guarantees or represents a high likelihood of your getting a loan or some other extension of credit may not ask for — or accept — payment until you get the loan.

Credit Repair

Be suspicious of claims from so-called credit repair clinics.(opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)  Many companies appeal to people with poor credit histories, promising to clean up their credit reports for a fee. But anything these companies can do for you for a fee, you can do yourself — for free. You have the right to correct inaccurate information in your file, but no one — regardless of their claims — can remove accurate negative information from your credit report. Only time and a conscientious effort to repay your debts will improve your credit report. Federal, and some state, laws ban these companies from charging you a fee until the services are fully performed.

Phishing

Phishing(opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)  is when Internet fraudsters impersonate a business to trick you into giving them your personal information, such as usernames, passwords and credit card details. Legitimate businesses don’t ask you to send sensitive information through insecure channels.

For example, a fraudulent e-mail may state that NCUA will add money to the member's account for taking part in a survey. The link embedded in the message directs members to a counterfeit version of NCUA's website with an illicit survey that solicits credit card account numbers and confidential personal information. NCUA will never ask credit union members or the general public for personal account or personally identifiable information as part of a survey.

Tips:

• Don’t select links in e-mails that ask for personal information.
• Never open unexpected attachments.
• Delete suspicious messages, even if you know the source.

SMishing

Phishing via SMS, or SMishing, uses cell phone text messages or SMS (Short Message Service) to trick you into providing personal and financial information. Smishers may use URLs or an automated voice response system to try and collect your information.

Tip: In some instances, criminals have used malicious software in their text messages solicitations. To prevent further security issues, completely remove unsolicited text messages from your phone. This may take two steps: deleting the text and then completely removing it from your device.

Vishing

Phishing by voice, or vishing(opens new window), exploits a general trust in landline telephone services. The victim(opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)  is often unaware that voice over Internet Protocol (VoIP) allows for caller ID spoofing, thus providing anonymity for the criminal caller. Rather than providing any information(opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)  to the caller, the consumer should verify the call by contacting the financial institution or credit card company directly, being sure to use the institution’s accurate contact information (i.e., do not use contact information the caller provides).

The elderly are the fastest growing segment of our society and they are also an important part of our country's economy. America's growing older adults population is uniquely vulnerable to a broad range of exploitation and abuse. Financial crimes in particular are targeted at older adults with alarming frequency, and are all too often successful. Learn More.

Once a cybercriminal has your name and Social Security number, he or she can file a tax return in your name by making up financial information that generates a large refund. Since the IRS doesn’t require W-2 forms when you file electronically, cyber criminals can commit electronic tax-refund fraud easier than paper tax fraud, especially since electronic tax-refund fraud is straightforward and hard to detect.

Tip: Be extremely protective of your personal information, and only share it with trusted sources, especially when using the Internet. Often, tax fraudsters will obtain your information through e-mail phishing, social engineering tactics, the black market, and other sources.

Tax identity thieves may use your Social Security number to get a tax refund or a job. You take steps to protect your personal information by not opening unrecognized emails and shredding important documents. But, do you know how to recognize and prevent from becoming a victim of tax identity theft?

The public has been getting fake US Treasury checks. Make sure to verify with these tips from the US Department of Treasury.

Learn about the different types of investor fraud (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) .

How to Avoid Fraud

A basic understanding of how scam artists work can help you avoid fraud and protect your money. Learning how to invest wisely can help you reach your financial goals. Here are some ways to help avoid being scammed:

• Learn what you can do to avoid investment fraud including red flags to watch for and where to go for help. (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
• Learn how to protect yourself online, and how to protect your social media accounts. (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
• Learn about the different types of investment fraud, including those found online and in social media. (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
• Review Investor Alerts (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)

Resources for Victims

Every year, thousands of U.S. investors lose money to fraud and other securities law violations.  In some cases, harmed investors may be eligible to receive money recovered from fraudsters.  The U.S. Securities and Exchange Commission provides information (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) about some of the ways harmed investors may recover money.

Remember: if you have a question or concern about an investment, or you think you have encountered a fraud, please contact the SEC (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , FINRA (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , or your state securities regulator (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)  to report the fraud and to get assistance.

NCUA does not insure money invested in stocks, bonds, mutual funds, life insurance policies, annuities or municipal securities, even if these investment or insurance products are sold at a federally insured credit union. Credit unions often provide these services to their members through third-parties, and the investment and insurance products are not insured by the National Credit Union Share Insurance Fund. In locations where these investment and insurance products are offered or sold to members, credit unions are required to disclose that the products:

• are not insured by NCUA;
• are not deposits or other obligations of the credit union and are not guaranteed by the credit union; and
• are subject to investment risks, including possible loss of the principal invested.

Criminals and scammers use many techniques to fool potential victims. NCUA has put together a list of tips​ you can use to avoid becoming a victim of a holiday scam. Take a look at a few of the newest and most common scams you should watch for during the holiday season.

View NCUA’s latest information on common frauds and scams

Frauds, Scams and Cyber Threats – Part 1

Frauds, Scams and Cyber Threats – Part 2

Scams Targeting Seniors

If you get a call from an imposter, file a complaint at ftc.gov/complaint(opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) . Be sure to include:

1. Date and time of the call,
2. Name the imposter used,
3. What they tell you, including the amount of money and the payment method they ask for, and
4. Phone number of the caller; although scammers may use technology to create a fake number or spoof a real one, law enforcement agents may be able to track that number to identify the caller.