To protect yourself, it’s important to be familiar with trending scams — keep reading to learn about the latest.

Never share your online banking User ID or password. MCFCU will NEVER contact you and ask for it — and there’s no reason anyone else needs it, ever.

Student loan scams

Americans lost an astounding $5 billion to student loan fraud in 2022. As students graduate high school and look to college in the fall, scammers are busier than ever. And if you’re one of the millions of Americans with existing student loans, beware that scammers are also looking to target you regarding relief and refinancing.

Many of the scams – for both new loans and for relief or consolidation of existing loans – involve payment of fees up front. Other scammers pose as organizations simply to steal your personal information.

Here’s four ways to protect yourself from student loan scams:

• Watch out for fees. While borrowing fees exist, they are included in the principal of legitimate loans, and will come up when you take the loan out. If someone is asking you to pay fees now, out of pocket, in order to refinance your loan, make a new loan, service an existing loan, apply for debt relief, or fill out a FAFSA form, it’s probably a scammer.
• Don’t give out your Federal Student Aid (FSA) ID or password. No one should be asking you for your FSA ID and password. You will use it to log in to legitimate government websites (like https://studentaid.gov/), but if someone is asking you for it on the phone, via text, via email, or in person, you’re dealing with a scammer. Be cautious when revealing other private information.
• Resist pressure to act immediately. Most student loan scams – and many scams in general – have something in common: pressure to act immediately.
• Do your research. Speaking of being pressured to act immediately, one reason for this is that scammers don’t want you to take the time to research the name of their company or organization. Many scammers have created sophisticated, professional-looking websites and social media profiles. But don’t trust a website or social media profile by itself. Instead, research any person or business who contacts you. A simple search engine search of their name plus “reviews” or “scam” may reveal whether you’re dealing with a legitimate organization or not. Additionally, don’t accept as accurate any official-sounding language like “partner of the Department of Education” or “pandemic grant.”

The bottom line: if someone reaches out to you about a student loan, or if you see an advertisement on social media, do your research and think carefully before providing personal information or money.

Digital payments fraud

Many people love digital payments (like Venmo, PayPal, and other popular platforms) for being an easy and secure way to send money to people they know and trust. But because scammers may pose as people or businesses you know, it’s important to protect yourself — and your money.

Whether you’ve used digital payments before or are new to it, follow these tips to help you pay it safe.

• Only use digital payments to send money to people you know and trust
• Never share your online banking User ID or password. MCFCU will NEVER contact you and ask for it — and there’s no reason anyone else needs it, ever.
• Never do a “test” transfer with any third-party payment service. Recent fraud uses someone pretending to be from MCFCU asking you to do a “test” transaction or transfer. MCFCU will NEVER ask you to do a test transfer, ever.
• Never use digital payments to make utility bill or credit card payments. A scammer may pretend to be a utility company or wireless carrier asking you to send a payment with a digital platform. Most digital payment platforms cannot currently be used to pay utility or credit card bills.
• Don’t send money back to someone who “accidentally” sent you money via digital payment. Scammers will send money from stolen accounts and then ask the recipient to send the money back — but the money sent back is your real money, while the money that you “accidentally” received is stolen.

If someone reaches out to you and says that they sent you money accidentally, tell them to reach out to their bank or credit union to resolve it. Never send the money back to them.

Social media artist scams

Fraudsters are increasingly active on social media. If someone you don’t know contacts you on Instagram or another platform and offers to pay you, the money is probably coming from a stolen financial account, especially if they ask you to transfer part of the payment back to them (or to another person). If the true owner of the stolen account reports the loss, you may be on the hook for the funds deposited into your account, plus whatever amount you send to the scammer, which may not be recoverable. Be wary of Instagram and social media scams like these:

• The artist scam: A so-called artist will DM you to say one of your photos inspired them and they want permission to create art based on your photo. The scammer will claim to work for a wealthy client whose assistant will use a payment app like Venmo to pay you. The catch? They’ll want you to send them a cut from the client’s payment. The funds you receive will be stolen – but the money you send will be deducted from your own account.
• The influencer scam: With lots of Instagram followers and likes, some influencer accounts may seem incredibly popular — but they’re only there to deceive you. If an account features an eye-catching profile picture and promotes investment opportunities or financial services, it’s probably fake or hijacked by scammers.
• The sponsorship scam: Instead of pretending to be an influencer, some fraudsters will imitate legitimate brands in hopes of scamming you. Watch for DMs from fake brand accounts, offers to pay you for advertisements, or the chance to sign up as an ambassador — it’s just another attempt at stealing your personal information or money.

Fake debt collector scams

In this scam, fraudsters threaten legal action to pressure you to pay a fake debt. In late 2022, the Federal Trade Commission (FTC) returned more than $1 million to victims of just such scams.

To protect yourself from similar scams:

• Understand your finances. Keep records of past and current debts, so you won’t get fooled by a fake debt.
• Request a “debt validation letter.” This requires the debt collection agency to prove they’re legally collecting a debt you owe.
• Regularly review your credit report so you stay aware of the status of all your accounts.
• Know your rights, including those covered under the Fair Debt Collection Practices Act.

Wire transfer scams

Scammers are always looking for new twists on an old scam – and one of their favorite payment methods is wire transfers. Why wire transfers? They allow fraudsters to move money out of your reach quickly and are hard to trace.

Before sending a wire transfer, ask yourself these questions:

1. Did you receive a call claiming to be from the government or a well-known company (e.g. Walmart, PG&E, Amazon) advising that you owe them money?
   
   If yes, you’ve been targeted. Government organizations will send you official paper mail — not phone calls, texts or emails — for money owed. Well-known companies will never contact you about funds owed to them.
   
   
2. Have you received an unexpected call from someone who claims to be a friend or relative that needs cash for an emergency?
   
   Family emergency scams are on the rise. Fraudsters will claim they need your help to get out of jail, pay a hospital bill, or leave a foreign country. Don’t send the money — and don’t hide information about the nature of the wire transfer if your bank or credit union asks.
   
   
3. Is the person asking for a wire transfer to someone you’ve met only on social media, a forum or a dating website?
   
   If yes, you’re the target of a romance scam. This con game uses fake profiles on social media, dating sites, forums and apps. After earning your trust, they create stories to appeal to your emotions with the goal of separating you from your money. They may interact with you romantically, offer you a job or business opportunity, or pretend they’ll invest your money
   
   
4. Were you sent a check (or another type of payment) and instructed to deposit it and then wire the money back to the sender or another person?
   
   If someone you don’t know sends you a check (or other type of payment) and asks you to wire it back to them, you’re dealing with a fraudster. Don’t cash the check or accept the payment, and don’t wire money back.

Romance Scams

It’s easy to fall for a romance scam set up on a dating app or social media. The fraudster creates a fake profile to start sending sweet messages and big proclamations to their target. Once they have your trust and affection, the asks begin. They’ll ask for money to come see you (but won’t actually come), for unexpected expenses, or for a family emergency. What will you get in return? A lower account balance.

Here’s how to protect yourself if you think you’re dealing with a romance scammer:

• Stop communication immediately.
• Don’t send money or gifts to anyone you haven’t met in person.
• Do a reverse image search of their profile image using a search engine. Is it a stock image or a photo stolen from somewhere else?
• Never send revealing photos of yourself — these can be used for blackmail.
• Talk to your trusted friends or family about your new love interest. Do they have concerns?