Tag: money

Before discussing how to avoid a P2P scam, you may be wondering what “P2P” stands for. A peer-to-peer (P2P) service is a decentralized platform whereby two individuals interact directly with each other, without intermediation by a third party. Instead, the buyer and the seller transact directly with each other via the P2P service. Google Wallet, PayPal, Snapcash, Venmo and Bitcoin are examples of P2P services.

P2P platforms are super-convenient. But, P2P scams are rampant and varied. Plus, once money is transferred by P2P, it’s usually gone forever.

Here are five P2P scams to beware of:

1.      Mystery money

In this P2P scam, a stranger “accidentally” sends the target money and then reaches out, wanting their money back. The target sees these funds in their P2P account and returns them. Unfortunately, though, because this money was added to the target’s account using a stolen credit card or account, the platform flags the original transaction as fraud and removes the funds from the victim’s account. 

2.      Hidden credit card fraud

In this P2P scam, a fraudster purchases an item listed on a site, like Craigslist, using a P2P service. They’ll pick up the item, or have it shipped to their home, and they’ll never be heard from again. Meanwhile, the P2P platform will eventually recognize the funds for the purchase come from a bogus source, and will take the money back from the seller. 

3.      Utility scams

In this scam, a “rep” from a utility company reaches out to a target, claiming their service will be shut off unless a payment is made immediately. The scammer insists on payment by P2P. Unfortunately, once the transfer is made, it can be impossible to reclaim the money. 

4.      Password scam

In this scam, an alleged representative of a credit union or bank will reach out to a target by text, asking them to approve a recent large P2P transfer from their account. A “no” response will prompt the scammer to call the victim. Posing again as a rep of their financial institution, they’ll offer to assist in reclaiming the allegedly frauded money. To do so, the scammer claims the victim will need to share their Zelle login credentials. Unfortunately, if the victim shares the one-time passcode, the scammer can change the password and send themselves money through the victim’s account. 

5.      Bogus receipts

Here, a scammer will insert themselves into a legitimate P2P transaction by digitally manipulating a screenshot to make it appear as if they have completed a part of an ongoing deal and insisting you now owe them money. In truth, though, the transaction was never completed and, if you send the money, you’ll be sending it directly to a scammer’s P2P account.

Stay safe

• Only send and accept funds from people you know and trust. 
• Never give out your passwords/pins/challenge response tokens to anyone.
• Use strong passwords and don’t reuse them across any accounts.
• Use 2 Factor Authentication.
• Don’t use guest or unsecured networks when doing transactions or logging into accounts.
• Always confirm you’re interacting with the correct person by verifying their phone number at every stage of the P2P transaction process.
• Call the P2P platform’s customer service number directly to resolve any errors. Similarly, reach out to High Point Federal Credit Union directly if you receive notification of an allegedly frauded account. 
• Check your checking account after every P2P transaction to confirm that you’ve received the funds. 

Malware scams are malicious and exploit the known prevalence of scams. Hackers tap into people’s fears by tricking innocent victims into losing their information and their money. Here’s what you need to know about malware scams and how to avoid them.

How these scams play out

Malware scams, also known as tech support scams, begin with a phone call, pop-up message, or email. A scammer reaches out to an individual and informs them that their computer has been hacked. The caller claims the alleged hacker gained access to the victim’s device and can do all kinds of damage. However, the caller, posing as tech support, says they can help remove any malware that’s supposedly installed. The bogus rep gives the victim instructions for removing the malware, possibly even giving the caller access to their device. Unfortunately, though, if the victim follows these directions, they’ll actually be installing malware on their computer. 

Red flags

Avoid malware scams by looking out for these signs: 

• An alleged rep of a tech company has called you without you reaching out first. 
• The “tech support rep” asks you to provide them with remote access to your device.
• The caller urges you to act immediately or risk causing further damage. 
• The caller asks you to enter your credit card information to pay them for their service. Alternatively, they’ll ask to be paid via prepaid gift card. 

If you’ve been targeted

If you’ve been targeted by a malware scam, don’t engage with the caller. Hang up and block the number. Next, close your device. If you believe you’ve already given the scammer access, consult a real tech support expert to remove any malware that may have been installed. In addition, consider placing a credit freeze on your name. Finally, alert the FTC.

Signs your device has been infected

Here’s some ways to tell if your computer’s been infected:

• It’s slowed down a lot.
• You’re blasted with tons of pop-up ads. 
• Your system abruptly crashes. 
• You’re suddenly low on disk space.

If you notice any of these signs, take it to a tech support expert and follow the steps outlined above.

Stay safe! 

Grandparent scams have gotten super sneaky in recent years, which makes them difficult to spot. Here’s what to know about grandparent scams and how to avoid them. 

How the scams play out

There are several variations of the grandparent scam. In each one, the caller claims to be a grandchild of the target. The scammer often spoofs the grandchild’s number so it shows up on the grandparent’s phone. 

• The legal trouble scam. In this ruse, a scammer claiming to be their grandchild will call and claim to have been arrested. The “grandchild” asks them to send money for posting bail. They’ll pass the phone to an alleged representative to accept the funds via wire transfer or gift cards. But this is just the scammer’s partner in crime; not a real authority figure.
• The medical trouble scam. This version of the grandparent scam involves a “grandchild” calling up Grandma or Grandpa and claiming to be seriously injured. They’ll ask for money to help pay the medical bills. 
• The international trouble scam. In this scam, a “grandchild” calls and claims they’re in deep trouble in a foreign country. They’ll ask for a big chunk of money to be sent by wire transfer or prepaid debit card for them to get out safely. 

If you’re targeted

If you believe you’re being targeted by a grandparent scam or a similar ruse, follow these steps to keep yourself safe:

1. Don’t take immediate action. Pause and think it through before blindly sending money. 
2. Ask the caller to answer a personal question only your grandchild will know. 
3. Check your grandchild’s whereabouts by hanging up and calling your grandchild directly. Chances are, your grandchild is just fine.
4. Hang up and report the crime to your local police department and the FTC.

Safety rules to know

It’s a good idea to follow these rules for protection from grandparent scams and other ruses:

• Never share personal info online or on the phone with an unverified contact. 
• If you’re asked to pay for something via money transfer or prepaid gift card, it’s probably a scam. 
• Put your number on the no call list.
• Keep your social media privacy settings at their strongest and limit what you share on public forums. 

Stay safe!