Fraud and Scam Awareness
Frauds and scams can happen to anyone, but you can protect yourself by being aware.
Here are some tips on avoiding being swindled.
Fraud costs American consumers $50 billion each year as criminals swindle honest
people of profit and savings. Contrary to Hollywood notions, scam artists are not unusually more intelligent than the average person. They simply spend more time thinking about scams than most people.
Deceiving unsuspecting consumers can be easy, while the fraud can be difficult to prosecute.
Defeating swindlers at their dishonest game is as simple as being cautious. The unwary can be easy targets
for criminals, unaware that they have been defrauded, and—all too often—too ashamed to admit having been a victim of fraud.
The American legal system recognizes 800 separate cons and swindles—many cons have been around since people discovered commerce. However, the varieties of fraud are limited only by a con artist’s imagination.
How do I protect myself from all these scams?
The best way to avoid frauds, cheats and scams is through awareness. Con artists do not want to meet an informed consumer. One common statement from people who have been swindled is: "I feel so stupid—I should have known." We don’t want anyone to feel bad, but most people come to learn that scams can be avoided with a little more common sense. Remember a few simple rules.
- If something sounds too good to be true, it probably is.
For example, if someone tries to sell you house siding at a cost far below market value, then you should verify his credentials and references.
- Don’t be greedy
Most people who suffer cons report that they thought they had either found a quick way to save a lot of money or to make a lot of money.
- Never rush into a decision
Con artists play on emotions, which leave the target less room to make thoughtful, informed decisions. Thieves will play on fear, greed, charity and lust to defraud their targets.
- Invest or spend money only with recognizable organizations, established businesses, and individuals you know. Most of the businesses on the Internet, on TV, or advertising for mail order are completely legitimate. However, many quick rip-off operations involve scams which appear to be a large business.
- Trust yourself.
If someone tries to talk you out of your doubts, then they might not have your best interests at heart. Don’t be afraid to listen to your calmer, more rational nature.
- Keep your money in the community.
Many scam artists set up phone operations in another state or even out of the country from their intended victims. Such operations allow the crooks to avoid prosecution.
- Keep your important documents in a safe place.
- Never give away credit information or credit card numbers over the phone, unless you know who you’re dealing with.
For more information on the latest scams and frauds, check out the Federal Trade Commission.
You can trust your credit union
Hopefully, you’ll never become victimized by fraud. When you talk to us, we are always happy to make suggestions to help you safeguard your credit identity. Talk to us if you need to review your financial needs and your comfort level for aggressive investing. We offer free financial planning, and we can help you understand your risks for almost any imaginable type of investment. We also work hard to give you better rates and fewer fees than you will encounter elsewhere.
We are owned by our members, so you can trust us to act only in your best interests. Savings and checking accounts enjoy stability and security. Investment accounts—with higher returns—enjoy responsible management. We don’t sell information on our members to anyone else. No other company or organization even gets access to your name through us. Unlike most organizations, we operate on a not-for-profit basis. That means we are governed by people just like you. We exist to provide the maximum return on people’s hard-earned investments, while offering the best possible service.