Beware of PPP Scams

The Paycheck Protection Program (PPP) has been one of the most important pieces of legislation signed into effect since the COVID-19 pandemic began. The unsecured loans through the Small Business Association (SBA) have enabled our favorite retail shops, restaurants and small businesses to stay afloat, even as the coronavirus devastates sectors of the economy.

Not surprisingly, scammers have been using the PPP for their own purposes, mainly to con struggling business owners out of money. In these scams, they’ll pose as SBA representatives or legitimate lenders to ask for personal information from the borrower. They may also send bogus emails appearing to be from the SBA to lead the victim into downloading malware.

Scammers are getting smarter all the time, but so are we! Here’s how to avoid PPP scams:

Know how PPP loans are processed

Ready to apply for a PPP loan? Just download the SBA PPP loan application, fill it out and submit it to an SBA-approved lender. You’ll also need to provide some documents, such as tax returns for 2019, verifiable payroll expense documents, your most recent mortgage or rent statement, etc.

If you’re applying for a Second Draw PPP Loan, you will also need documentation that shows how you have used, or plan to use, your original PPP funds.

After you’ve submitted your application, just sit back and wait for approval.

How can I protect my business from PPP fraud?

Do:

Be wary of any individuals demanding immediate payment or asking that you make immediate contact to be eligible for a PPP loan. These are likely scammers.
Only use a lender that is accredited by the SBA. You can find all SBA-approved lenders here.
Look for the .gov at the end of each email or website allegedly from the SBA or another government entity.
Report any suspected scams to the Better Business Bureau (BBB). Don’t let those crooks walk free!

Don’t:

Pay for a program that promises to process or expedite a PPP loan request if the organization behind the program is not accredited by the SBA.
Share any personal information with an unverified caller or email contact. If it’s personal info, make sure to keep it that way!
Click on links or download files from an unfamiliar email address.

Stay safe!

Beware Coronavirus Vaccine Scams

Believe it or not, there is a light at the end of the socially distanced tunnel. After months of trials, the FDA has approved two vaccines for the coronavirus.

Don’t like getting needles stuck in your arm? No worries. You may not be getting that shot for a while. That’s due to a whole lot of rules and guidelines about who gets the vaccine first, and there’s nothing you can do to change that.

The really bad news, though, is that those low-down scammers want to make you think otherwise. Yes, they’re back, and this time, they’re using news of the vaccines to get to you and your wallet.

Here’s what you need to know:

Long distribution process

The public is jumping all over each other in excitement for the vaccine — but the government is taking this whole process slowly, and there’s no way to pay under the table to cut to the head of the line. Expect a drawn-out distribution that may take months. If someone asks you for money to get your vaccine sooner, run the other way. Yes, it’s a scam.

DON’T pay money for the promise of getting your vaccine sooner.

Only through verified sources

Mama taught you not to take candy from strangers, and you shouldn’t be taking shots from them either. The COVID-19 vaccine will only be distributed through doctors — and we’re talking about the MD type. This is one item you can’t order on Amazon, even if you have Prime.

DON’T get your vaccine through an internet retailer.

No cost

Are you covered? If so, you’ll get your shot at no charge. All insured Americans can expect to get their vaccine for free.

DON’T pay for a COVID-19 vaccine.

No need to share information

Private information should be kept that way. There’s no need to share your Social Security number or financial account details to get your shot.

DON’T share personal info with an unknown contact.

FDA-approved only

So far, only vaccines from Pfizer and Moderna have been given the thumbs-up by the FDA. A vaccine approval is big news; if the FDA says yes to any more vaccines, expect to see it in the headlines.

DON’T agree to receive a vaccine you haven’t heard of or read about.

Don’t Fall Prey to a Holiday Toy Scam

Scammers famously exploit high-stress times, and the pre-holidays shopping frenzy is no exception. That’s why the BBB is warning of an uptick in holiday toy scams which can be difficult to spot.

Here’s what you need to know about these scams.

How the scam plays out

Every year, there are a few must-have toys on most kids’ wish lists. These choice picks become the hottest-selling items and are plucked off shelves in a wink. Unfortunately for anyone who didn’t shop early enough, these toys soon become impossible to find. The parents search desperately, but to no avail.

Here’s where the scammer steps in. Armed with a bogus website and some crafty online tracking, the scammer targets the vulnerable shopper with ads and online messages to draw the shopper to the scammer’s site. On the authentic-looking site, the shopper finally finds what they seek — the sought-after toy! Often, the toy is also deeply discounted. The purchase is completed within minutes.

Unfortunately, though, the scammer will send a cheap knockoff that doesn’t work or quickly breaks. When contacted for a refund, the scammer refuses to provide one or offers only to refund a small percentage of the purchase price. Sometimes, they’ll also charge an exorbitant amount of money for shipping it back to the company, almost making the small refund not worthwhile.

Red flags

Here’s how to spot these scams:

The seller has a large supply of toys that are in high demand.
The website is not secure.
The seller is offering a steep discount due to a “flash sale” or “last-minute” deal.
The seller’s website is full of spelling and/or grammatical errors.

Stay safe

Keep yourself safe when shopping online with these tips:

Research before you buy. Avoid purchasing an expensive item from a company you’ve never heard of before without doing some digging.
Look for the lock icon and the “s” after the “http” on the URL before buying anything.
Review item return policies before making a purchase.
Pay with credit for purchase protection power.
Keep your security software up to date.
Hang on to any purchase order confirmations.
Don’t trust links in unsolicited emails. Scammers will often impersonate reputable websites in order to gain access to your account information. Go to a company website directly when looking for an item.
If you believe you’ve been targeted by a holiday toy scam, end all contact with the seller immediately. Alert the BBB and let your friends know about the circulating scam as well.

Shop safely this holiday season!

Beware Emergency Scams!

“Grandma, you gotta help me! They’re going to arrest me if I don’t pay the fine – and I lost my wallet! Can you wire me some money?”

Sounds like a heart-tugging phone call, doesn’t it? It’s actually just a plot by devious scammers. There’s no imminent arrest and no lost wallet. In fact, it isn’t even your grandchild on the line.

Family emergency scams are especially nefarious since they take advantage of the natural affection a grandparent has for a grandchild. They’re usually pulled off in the guise of a frantic phone call that appears to be from the victim’s grandchild.

Here’s how to identify an emergency scam and what to do if you’ve been victimized.

3 ways to spot emergency scams

1. The caller insists upon secrecy

Once your “grandchild” has had his or her say, the scammer will then take the phone, impersonating an authority figure who is out to make the arrest and demanding that payment be made immediately. They’ll stress the importance of keeping it hush-hush so nobody gets hurt, but the real reason behind their gag order is to keep you from digging and identifying the scam.

2. The “authority figure” will only accept certain payment methods

If you receive a phone call insisting that you wire money, or send a prepaid debit card or certified check to save your grandchild from a distressing situation, you’re looking at a scam.

3. Your “grandchild” doesn’t know basic identifying information

It can be difficult to recognize your grandchild’s voice over a phone that has iffy reception. If you receive a call like the one described above, ask the caller about some information that a stranger would not be able to find on your grandchild’s social media accounts. This will let you know who you’re dealing with.

If you’ve been scammed

If you’ve gotten a frantic phone call like this from your grandchild and you believe it to be true, don’t react. First, call your grandchild on your own to verify his or her whereabouts. You may be surprised to learn your grandchild is safe at home!

If you’ve only recognized the ruse after you’ve sent your money, report the scam to the Federal Trade Commission at ftc.gov.

How to Recognize and Protect Yourself from Scams

Here at Olean Area Federal Credit Union, our biggest priority is your financial wellness. It’s important to note that the following information does not cover all types of scams or financial security threats in existence, and that these threats are constantly changing and evolving.

To help keep you safe, we’ve made this guide about how to recognize and protect yourself from scams that are common today.

Five ways to spot a scammer

1. They ask for detailed information before agreeing to process an application.

2. They insist on a specific method of payment.

3. They send a check for an inflated amount to a seller or “employee,” and then ask the victim to mail them the extra money. Of course, the original check will not clear.

4. You can’t find any information about the company the caller allegedly represents.

5. You’re pressured to act now.

Who are the targets?

Here are some of the most common targets of scams:

The unemployed. If you’re job-hunting, don’t respond to emails offering you a “dream position” you never applied to have.
The aging. Older people often spend lots of time online. They can also be less aware of the dangers lurking there.
Children. Children will more readily share information with strangers, which can then be used to steal their identity.

What do scams look like?

These are some of the most common scams:

Cyberhacking. Hackers gain remote access to your computer-and personal information.
Phishing scams. Scammers bait you into sharing personal information, which they use to hack your accounts or steal your identity.
Mystery shopper. A bogus company will “hire” you to purchase an item in a store and then report back on the experience. Before you get started, though, you’ll have to pay a hefty fee, which you’ll never see again.
Job offers. Scammers “hire” you for a position and then scam you by sending you an inflated check, as detailed above.
Sweetheart scams. A scammer pretending to be an online lover or unknown relative will con you into sending them money and gifts or sharing personal information.
Fraudulent investments. Scammers reach out to victims with information about lucrative investments that don’t exist.

10 ways to protect yourself from scams

1. Never share personal or financial information with someone you don’t know or that you didn’t initiate contact with.

2. Don’t open unsolicited emails. If you do, don’t click on any links in them.

3. Never send money to an unknown party.

4. Protect your devices by using the most current operating systems, choosing two-factor authentication and using strong, unique passwords for every account.

5. Choose the strongest privacy settings for your social media accounts.

6. Keep yourself in the know about the latest scams. You can sign up for free scam alerts from the Federal Trade Commission by clicking here.

7. Educate your kids about basic computer safety and privacy.

8. If you have elderly parents, talk to them about common scams and teach them to protect themselves.

9. If a government agency or a company calls and asks you to share personal information, tell them you’ll contact them on your own.

10. Never accept a job or pay for a purchase or service without researching the company involved.