Scammers Posing as Credit Union Employees Are Using Spoofed Caller-ID Numbers
June 1, 2021
Credit union members in the Northwest are falling victim to a new twist on classic telephone scams. Scammers are using easily obtained software to mimic the phone number of credit unions and other financial institutions. They then make phone calls to their victims, posing as credit union employees from the security department, and try to obtain information from the members to set up fake debit cards and credit cards.
It’s incredibly easy for these criminals to spoof phone numbers. There are apps available in the Google Play and Apple stores that they can use to spoof calls. The fraudsters typically obtain stolen personal information about their intended victim on the dark web. When posing as credit union employees, they use data they already have to trick the victims into providing them with more information.
Credit unions whose members may be targeted by the scammers may wish to send out an email alert to their members, post fraud prevention messages on the homepage of their website, and share scam information through their phone response system.
Spoofed calls can be reported to the Federal Communications Commission and the Federal Trade Commission. These agencies have the authority to enforce federal laws that regulate caller ID spoofing, autodialed calls, and interstate fraud perpetrated over the phone. They may not be able to investigate individual cases, but reports can help them collect evidence for lawsuits against scammers.
If a member or credit union has lost money to a criminal scam, it should be reported to local law enforcement and federal law enforcement.
How to Avoid Spoofing Scams
The FCC has provided tips for consumers to avoid spoofing scams that credit unions may wish to share with their members.
- You may not be able to tell right away if an incoming call is spoofed. Be extremely careful about responding to any request for personal identifying information.
- Don’t answer calls from unknown numbers. If you answer such a call, hang up immediately.
- If you answer the phone and the caller – or a recording – asks you to hit a button to stop getting the calls, you should just hang up. Scammers often use this trick to identify potential targets.
- Do not respond to any questions, especially those that can be answered with “Yes” or “No.”
- Never give out personal information such as account numbers, Social Security numbers, mother’s maiden names, passwords, or other identifying information in response to unexpected calls or if you are at all suspicious.
- If you get an inquiry from someone who says they represent a company or a government agency, hang up and call the phone number on your account statement, in the phone book, or on the company’s or government agency’s website to verify the authenticity of the request. You will usually get a written statement in the mail before you get a phone call from a legitimate source, particularly if the caller is asking for a payment.
- Use caution if you are being pressured for information immediately.
- If you have a voice mail account with your phone service, be sure to set a password for it. Some voicemail services are preset to allow access if you call in from your own phone number. A hacker could spoof your home phone number and gain access to your voice mail if you do not set a password.
- Talk to your phone company about call blocking tools and check into apps that you can download to your mobile device. The FCC allows phone companies to block robocalls by default based on reasonable analytics. More information about robocall blocking is available at gov/robocalls.
- Remember to check your voicemail periodically to make sure you aren’t missing important calls and to clear out any spam calls that might fill your voicemail box to capacity.
Question of the Week
Q. My credit union has a UTMA account where the custodian died. Who controls the money now? The minor is 16 years old.
A. In Washington, the Uniform Transfers to Minors Act accounts governs what happens when on when the custodian for the UTMA account dies, and the minor is below the age of 18. Prior to death, the custodian could have designated a successor custodian, and, if not, the guardian of the minor becomes the new custodian. If the minor does not have a guardian, the transferor, the legal representative of the transferor or custodian who has passed, an adult member of the minor’s family, or any other interested person may petition the court be become the new custodian.
In Oregon and Idaho, a minor who is above 14 years in age can designate the new custodian.
National Credit Union Administration
The NCUA released Regulatory Alert 21-RA-06 to provide credit unions with information related to the CFPB’s delay of the mandatory compliance date of the change to the general definition of a Qualified Mortgage in Regulation Z’s ability to repay rule.
Consumer Financial Protection Bureau
The CFPB released a report which analyses the differences between mortgage loans for site-build homes, mortgage loans for manufactured homes, and chattel loans for manufactured homes. Manufactured housing is the largest source of unsubsidized affordable housing in the United States, but financing a manufactured home can be costly, especially for borrowers who do not own the underlying land.
In 2015, the Consumer Financial Protection Bureau launched the Financial Coaching Initiative, a pilot program that provided financial coaching services to veterans and economically vulnerable consumers. The CFPB released a report and summary brief to describe the basic structure of the initiative, present data about the program’s results, and summarize key lessons learned for practitioners and organizations interested in coaching.
Office of Foreign Assets Control
OFAC has updated the SDN list as of May 21. The last update prior to this was May 17.
Questions? Contact the Compliance Hotline: 1.800.546.4465; firstname.lastname@example.org.