Common Marketplace Scams: How to Stay Vigilant and Protect Yourself

by yncuniversity | Jul 4, 2024 | Fraud Prevention

Common Marketplace Scams: How to Stay Vigilant and Protect Yourself

July 4, 2024

In today’s digital age, online marketplaces have become a staple for buying and selling goods. Platforms like eBay, Craigslist, Facebook Marketplace, and Amazon offer convenience and variety but also attract scammers looking to exploit unsuspecting users. Understanding common marketplace scams, knowing what to watch for, and learning how to protect yourself, are crucial to avoid falling victim to fraud. Here’s a guide to help you navigate these potential pitfalls.

Common Marketplace Scams

• Fake Listings: Fraudsters create listings for non-existent items – often at attractive prices. After payment is made, the item is never delivered, and the seller becomes untraceable.
• Overpayment Scams: The scammer overpays for an item with a fake check and asks the seller to refund the excess amount. The original check bounces, leaving the seller out of pocket for the ‘refund’ they issued.
• Phishing Scams: Scammers send links to fake websites that mimic legitimate marketplaces to steal login credentials or financial information.
• Shipping Scams: Scammers persuade buyers to use non-traceable shipping methods. The item either never arrives, or the seller receives payment through an irreversible method like PayPal Friends and Family, allowing the scammer to keep both the item and the payment.
• Counterfeit Goods: Sellers offer branded items at low prices, but the buyer receives a counterfeit or low-quality imitation.

How to Prevent Falling Victim to a Scam

• Research: Always research the seller or buyer. Check their ratings, reviews, and any previous transaction history if available.
• Secure Payment Methods: Use secure payment methods.  Avoid e-transfers or non-reversible payment methods.
• Meet in Person: If possible, arrange to meet in a public place to exchange goods and payment. Bring a friend along for added security.
• Verify Listings: Be wary of listings with prices that seem too good to be true. Verify the authenticity of high-value items before purchasing.
• Check Website URLs: Ensure the website URL is correct and secure (look for “https” and a padlock symbol) before entering personal or financial information.
• Trust Your Instincts: If something feels off, it probably is. Don’t proceed with transactions that raise red flags.

What to Do If You Think You Have Been Scammed

• Report Immediately: Report the incident to the marketplace platform. They may assist in recovering your funds or taking action against the scammer.
• Contact Your Financial Institution: If you provided financial information or made a payment, contact your financial institution or credit card company immediately to attempt to stop the transaction or dispute the charge to prevent further loss to you or others.
• File a Police Report: For significant financial losses, file a report with your local law enforcement. This can help in documenting the incident for future claims and to help protect others from the same scam.
• Change Passwords: If you suspect your account details were compromised, change your passwords immediately and monitor your accounts for suspicious activity.
• Notify Consumer Protection Agencies: Inform agencies like the Canadian Anti-Fraud Centre (click HERE to report), which can provide additional resources and track scam trends.

As a financial institution, YNCU prioritizes your security and financial health. Staying vigilant, informed, and cautious can help you avoid the pitfalls of marketplace scams. Always prioritize your security and be proactive in safeguarding your online transactions. Together, we can create a safer online marketplace environment.

YNCU members, if you know, or think you have been a victim of a marketplace scam and your banking information has been compromised or you made a payment, please contact our Service Excellence Centre at 1-800-413-YNCU (9628). You can also contact the Canadian Anti-Fraud Call Center at 1-888-495-8501.

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What’s Trending in the Fraud Scene?

by yncuniversity | Jun 1, 2024 | Fraud Prevention

What’s Trending in the Fraud Scene?

June 1, 2024

“For Mobile Deposit Only” Scam

In an age where convenience is king, mobile banking has become a staple for many. With just a few taps on your smartphone, you can deposit cheques, transfer funds, and manage your finances on the go. However, amidst this convenience lies a lurking danger: the “For Mobile Deposit Only” cheque scam.

While mobile depositing offers a quick and efficient way to handle cheques, scammers have found ways to exploit this technology for their vicious schemes. The scam typically involves fraudulent cheques marked with the phrase “For Mobile Deposit Only”. These cheques appear legitimate at first glance, but they are often counterfeit or stolen.

The method of the scam is simple yet effective. The scammer leads the member to believe that they are applying for an online loan. The victim, unsuspecting of any wrongdoing, gives the scammer/fraudulent loan company their banking information as well as their login credentials for online banking. Once the scammer has access to their victim’s online banking they deposit a “For Mobile Deposit Only” cheque, and send out the funds via e-transfer or bill payment to a money service business or crypto exchange. However, the real trouble begins when the bank discovers the fraudulent nature of the cheque. By then, the scammer has already disappeared with the member’s financial information, the funds they believed they were receiving from an online loan, and possibly additional funds the member had in their account, leaving the victim to face the consequences. The victim not only loses the money they thought they had received but may also be held liable for any fees or penalties associated with the fraudulent transaction.

To add insult to injury, victims of this scam may find themselves facing legal trouble, as depositing a fraudulent cheque is considered illegal activity. Even if done unknowingly, ignorance is not a defense in the eyes of the law. So, how can you protect yourself from falling victim to the “For Mobile Deposit Only” cheque scam? Vigilance is key.

How to Protect Yourself

1. Verify the source: Be wary of cheques from unfamiliar or untrusted sources, especially if they come with unusual instructions like “For Mobile Deposit Only”.

2. Inspect the cheque: Examine the cheque closely for any signs of tampering or irregularities. Look for discrepancies in the handwriting, printing quality, or paper texture.

3. Contact the issuer: If you have any doubts about the legitimacy of a cheque, reach out to the issuer directly to verify its authenticity.

4. Wait for clearance: Even if funds from a deposited cheque appear in your account, wait for the check to clear before using the money. This can take several days, but it’s worth the wait to avoid potential scams.

5. Report suspicious activity: If you suspect that you’ve received a fraudulent cheque or fallen victim to a scam, report it to your bank and the appropriate authorities immediately.

Online Loan Scams

In the age of digital finance, online loans have become a convenient option for many people in need of quick cash. However, with this convenience comes the risk of online loan scams. These scams can drain your bank account, steal your identity, and leave you in a financial mess. It’s crucial to recognize the warning signs and understand how to protect yourself. One of the biggest red flags in these scams is when a supposed lender asks to log into your online banking account. Under no circumstances should you allow this.

Understanding Online Loan Scams

Online loan scams come in various forms, but they typically follow a similar pattern. Scammers pose as legitimate lenders, often using professional-looking websites and convincing sales pitches to lure victims. They promise fast approval and easy access to funds, which can be particularly appealing to individuals with poor credit or urgent financial needs.

Common Red Flags of Loan Scams

1. Unsolicited Offers: Legitimate lenders do not send unsolicited loan offers via email, text, or phone calls. If you receive such an offer, it’s likely a scam.

2. No Credit Check Required: Reputable lenders assess your creditworthiness. If a lender promises a significant loan without checking your credit, be cautious.

3. Upfront Fees: Legitimate lenders charge fees that are typically deducted from the loan amount. If a lender asks for an upfront payment to process your loan, it’s a scam.

4. Pressure to Act Quickly: Scammers often create a sense of urgency to prevent you from thinking things through or doing proper research. They might claim the offer is limited or that you must act immediately.

5. Request for Personal Information: Be wary of lenders asking for excessive personal information upfront, such as your Social Insurance Number (SIN), bank account details, or other sensitive data.

The Biggest Red Flag: Access to Your Online Banking Account

One of the most alarming tactics used by loan scammers is asking for access to your online banking account. They might claim they need to verify your financial information, deposit the loan directly, or even help manage your loan repayments. Regardless of their reasoning, this is a major red flag. NEVER, under any circumstances, should you allow anyone to log into your online banking account.

Here’s why:

1. Immediate Access to Funds: Once scammers have access to your account, they can transfer your money out quickly, often before you even realize it.

2. Personal Information Theft: With access to your bank account, scammers can obtain sensitive information that can be used for identity theft or sold on the dark web.

3. Unauthorized Transactions: Scammers can initiate unauthorized transactions, leaving you with the burden of proving fraud to your bank.

4. Compromised Security: Giving someone your login credentials compromises your account security, making it easier for them to bypass other security measures like two-factor authentication.

How to Protect Yourself

1. Research the Lender: Before engaging with any online lender, research their credentials. Check for reviews, verify their business registration, and look for any complaints filed with consumer protection agencies.

2. Use Secure Websites: Ensure the lender’s website is secure. Look for “https” in the URL and a padlock icon in the address bar.

3. Read the Fine Print: Carefully read all terms and conditions before agreeing to any loan. Pay attention to interest rates, fees, and repayment terms.

4. Keep Personal Information Private: Never share your Social Insurance Number (SIN), bank account details, or other sensitive information unless you are certain the lender is legitimate.

5. Consult with a Financial Advisor: If you’re unsure about a loan offer, consult with a financial advisor or seek advice from a trusted source.

YNCU members, if you know, or think you have been a victim of an online loan scam or a mobile deposit only cheque scam and your banking information has been compromised, please contact our Service Excellence Centre at 1-800-413-YNCU (9628). You can also contact the Canadian Anti-Fraud Call Center at 1-888-495-8501.

Don’t forget to follow us on Instagram and Tik Tok for more Honest Money Talk tips!

Navigating Domestic and International Wire Transfers: Requirements, Regulations & Essentials

by yncuniversity | May 7, 2024 | Fraud Prevention

Navigating Domestic and International Wire Transfers: Requirements, Regulations & Essentials

May 7, 2024

In today’s interconnected global economy, the ability to swiftly transfer funds domestically and internationally is crucial for individuals and businesses alike. Whether it’s paying bills, purchasing goods and services, or facilitating transactions across borders, wire transfers have become a cornerstone of modern financial transactions. However, navigating the process of sending domestic and international wire transfers requires a clear understanding of the requirements, regulations, and essentials involved.

What are Domestic and International Wire Transfers?

Wire transfers are electronic transfers of money from one financial institution to another. They offer fast, secure, and reliable ways to move funds, making them ideal for situations where time is key. Domestic wire transfers involve sending money within the same country, typically within a single currency and banking system. International wire transfers, on the other hand, involve transferring funds across borders, often requiring currency conversion and adherence to international banking standards.

Requirements for Sending and Receiving Wire Transfers

Sending or receiving a wire transfer, whether domestic or international, typically requires certain information and documentation to ensure the smooth processing of the transactions. Here are the key requirements:

1. Account Information: You will need accurate account details for both the sender and the recipient, including their names, account numbers, and the receiving financial institution’s routing number (for domestic transfers) or SWIFT/BIC code (for international transfers).

2. Amount and Currency: Specify the amount to be transferred and the currency in which it will be sent. For international transfers, consider any currency conversion fees and exchange rates.

3. Purpose of Transfer: Some countries and all financial institutions require information about the purpose of the wire transfer, such as for bill payments, investments, or purchasing a product.

4. Identification: You will need to provide an original government-issued photo ID such as passport, driver’s license, Ontario Photo ID card, or Nexus card.

5. Fees and Charges: Be aware of any fees associated with wire transfers, including initiation fees, intermediary bank fees (for international transfers), and currency conversion charges.

YNCU Members! If you are expecting a wire transfer please contact your branch or our Service Excellence Centre to verify that you have accurate account and routing information. Confirm that your ID, occupation/employer, address, and phone number that we have on file are accurate and up to date and that the purpose of the wire is documented. This will expedite the process and reduce delays, as our employees will have to contact you if any information we have is outdated or missing.

If you need to send or receive a wire please contact one of our branch staff to provide you with the necessary information to expedite the process. They will be able to provide you with incoming and outgoing transfer information and update your required information in our banking system so there are no delays in the process. Please visit your local branch or contact our Service Excellence Centre at 1-888-413-YNCU (9628).

The process of sending wire transfers is governed by various rules and regulations at both the domestic and international levels. These regulations aim to prevent fraud, scams, money laundering, and the financing of illegal activities. Domestic and international wire transfers play a vital role in facilitating global commerce and financial transactions. Understanding the requirements, regulations, and essentials involved in sending wire transfers is essential for ensuring the smooth and secure transfer of funds. By adhering to regulatory guidelines, providing accurate information, and staying informed about fees, individuals and businesses can leverage wire transfers as a convenient and efficient method of moving money across borders.

Don’t forget to follow YNCUniversity on Instagram and Tik Tok for more Honest Money Talk tips and YNCU on Instagram, Facebook, and LinkedIn.

THE DEEPENING DANGERS OF DEEPFAKE AI

by yncuniversity | Apr 17, 2024 | Fraud Prevention

What You Need to Know About Travel Scams

by Hannah Johnson | Mar 8, 2024 | Fraud Prevention

WHAT YOU NEED TO KNOW ABOUT TRAVEL SCAMS

Friday, March 8, 2024

Are you looking to get away from the long, cold, Canadian winter? Or maybe you are the adventurous type who wants to experience the different cultures from around the world. Without a doubt, this is a popular time of year to pack a suitcase and jet off to somewhere warm. Either way, you need to be aware and cautious while traveling the globe or even just traveling to a nearby city.  Scams targeting travelers and tourists are not uncommon. Being aware of common scams can help you avoid falling victim to them. Here are some travel and tourist scams to watch out for:

Fake Tickets & Tours

• Scenario – Someone may approach you claiming to be a tour guide or ticket seller, offering you a great deal on tickets or tours.
• Prevention – Purchase tickets and tours from reputable sources, such as official websites or authorized agents. Be cautious of deals that seem too good to be true.

Taxi Scams

• Scenario – Unscrupulous taxi drivers may take longer routes to increase the fare, claim that their meter is broken, or insist on a fixed price that is much higher than the standard rate.
• Prevention – Use reputable taxi services, agree on the fare before starting the journey, and ensure the meter is used (if applicable).

Pickpocketing & Distraction Techniques

• Scenario – Thieves often work in crowded tourist areas, using various tactics to distract you while an accomplice steals your belongings.
• Prevention – Stay vigilant in crowded places, secure your belongings, and be cautious of people creating distractions.

Fake Police Officers

• Scenario – Scammers may pose as police officers, asking to see your identification or accusing you of a fake crime to extort money.
• Prevention – Ask for official documentation, and if in doubt offer to go to the nearest police station. Don’t hand over money on the spot.

ATM Skimming

• Scenario – Criminals install skimming devices on ATMs to capture your card information and PIN.
• Prevention – If possible, avoid using your card at all. If you must use an ATM, use ATMs in well-lit and secure areas, cover your PIN while entering it, and regularly monitor your bank statements for any unauthorized transactions. 

Overpriced Goods & Services

• Scenario – Vendors may inflate prices for goods and services when they realize you’re a tourist.
• Prevention – Do your research and have a good knowledge of typical prices for goods and services in the area and be prepared to haggle. Avoid establishments that seem overly pushy or dishonest.

Fake Wi-Fi Networks

• Scenario – Cybercriminals may set up fake Wi-Fi networks in tourist areas to steal personal information from those who connect.
• Prevention – If possible, avoid using ANY public Wi-Fi and if you must only use known, secure and reputable Wi-Fi networks, consider using a virtual private network (VPN), and avoid accessing sensitive information on public networks such as accessing online banking or shopping.

Closed Accommodation Scam

• Scenario – Taxi drivers or locals may claim that your booked accommodation is closed or overbooked, and they may offer to take you to another, often more expensive option.
• Prevention – Confirm the status of your accommodation directly with the hotel/hostel before accepting alternative accommodation.

These are just a small sample of the possible scams that any tourist can fall victim to. The best way to stay clear of these scams is to educate yourself – do some research on the area of the world you are traveling to and be diligent to safeguard yourself, your family, and your assets.

YNCU members, if you know, or think you have been a victim of internet scams, phishing or cyber-attacks or your banking information has been compromised, please contact our Service Excellence Centre at 1-800-413-YNCU (9628).

You can also contact the Canadian Anti-Fraud Call Center at 1-888-495-8501.

Phishing and Smishing

by Hannah Johnson | Jan 1, 2024 | Fraud Prevention

Phishing and Smishing

Think twice before you click, submit, pay, download, or reply! This type of phishing is not enjoyable.

Phishing describes fraudsters attempting to trick users into doing ‘the wrong thing’ – such as clicking a bad link that will download malware or direct them to a dodgy website.

Phishing can be conducted via text message, social media, or by phone, but the term ‘phishing’ is mainly used to describe attacks that arrive by email. Phishing emails can reach millions of users directly and hide amongst the huge number of benign emails that busy users receive. Attacks can install malware (such as ransomware), sabotage systems, or steal intellectual property and money. Phishing emails and text messages often tell a story to trick you into clicking on a link or opening an attachment. You might get an unexpected email or text message that looks like it’s from a company you know or trust, like a bank, a credit card or utility company, or even an online payment website or app.

Smishing is a type of phishing scam where cyber criminals try to trick you by sending fraudulent SMS or text messages. They often pretend to be a real business (such as a bank or delivery company), a government department, or a person you know. During the COVID-19 pandemic, scammers have even pretended to be from assistance programs, like the Canada Emergency Response Benefit (CERB) and the Canada Recovery Benefit (CRB), to target vulnerable Canadians. Smishing messages will often try to get you to click on a link, which may contain malware or lead to a spoofed website. If you click on the link, cybercriminals can then steal your data, your money, or even your identity.

The message could be from a scammer who might:

• Say they’ve noticed some suspicious activity or log-in attempts — they haven’t.
• Claim there’s a problem with your account or your payment information — there isn’t.
• Say you need to confirm some personal or financial information — you don’t.
• Include an invoice you don’t recognize — it’s fake. Want you to click on a link to make a payment — but the link has malware.
• Say you’re eligible to register for a government refund — it’s a scam.
• Offer a coupon for free stuff — it’s not real.

Most phishing/smishing attacks create a sense of urgency in the message and encourage you to respond right away. They may send threats, like claiming they’ll close your account, or offer a time-sensitive reward, such as a prize for a contest you didn’t enter. But no text is ever that urgent — take your time when evaluating a potential smishing message.

Many phishing/smishing messages appear to be from a trustworthy and reliable source, like your bank or another business you know. Always be cautious, even if you think you recognize the business that the message is from.

To protect yourself from Phishing and Smishing use the SHADY? approach:

SECRET – Always keep your personal information secret, especially over email. Check with the sender by contacting them through another medium, like telephone, to confirm that they did in fact send you that email/text.

HOVER OVER A LINK BEFORE CLICKING IT – Hovering over a link lets you see where it points. Never click a link to any financial website, type in the address each time.

ATTACHMENTS SHOULD NOT BE CLICKED – Do not click on attachments if you are not expecting them. Even documents may contain a virus that can do damage to your device, track keystrokes, and compromise your information.

DIFFICULT PASSWORDS – Complex passwords help prevent people from hacking your accounts. Passwords should be strong, difficult to guess, and different for each system.

YOU SHOULD ASK YOURSELF WHENEVER YOU GET AN EMAIL/MESSAGE: Was I expecting this? If not proceed with caution or delete immediately.

? QUESTION – Always question electronic messages, especially if it is making promises or threatening action.

YNCU members, if you know, or think you have been a victim of phishing or smishing and your banking information has been compromised, please contact our Service Excellence Centre at 1-800-413-YNCU (9628).

You can also contact the Canadian Anti-Fraud Call Center at 1-888-495-8501. Check out this video for more information on How The “SHADY?” Technique Can Help Prevent Phishing and Smishing