Beware of Social Media Scams

Over the last few years, social media scams have exploded, with fake Twitter and Facebook profiles increasing by 100% in just one year. That also means there are several types of social media scams, most which involve a phishing scheme component.

Here’s how it happens: Scammers try to “friend” you by creating a bogus profile or cloning the profile of someone you know. Then, they’ll get you to share personal information by asking you random questions. Meanwhile, you’re unknowingly giving away the security questions for your personal passwords. By the time you realize what’s happened, it’s too late.

Other social media scams involve fake offers and promotions. To get your hands on the goods, though, you’ll first need to share your personal information. In another scam, fraudsters reach out to you while impersonating a credit union or other financial institution. They’ll claim to have incredible rates on loans. And, if you apply for this “loan,” the scammers might empty your accounts or trick you into making upfront payments to qualify. Here’s how to spot, prevent, and react to social media scams:

HOW TO SPOT A SCAM

Watch for these red flags:

• The posted offer sounds too good to be true. 
• You’re asked to make an upfront payment for a loan application. 
• You’re urged to act immediately or risk missing the offer. 
• The scammer claims to represent a financial institution, but when you call to discuss the offer, no one knows what you’re talking about. 
• You’re asked to share sensitive information in the initial stages of the application.
• A social media “friend” keeps asking you random questions.

PREVENTING SOCIAL MEDIA SCAMS

Preventing social media scams isn’t too difficult. All it takes is some common sense and practical steps:

• Think before you click. Ignore anything suspicious or intrusive. 
• If a lender has contacted you, check their legitimacy with the BBB at bbb.org. 
• If you need to take out a personal loan, contact us directly at 877-937-2328 or visit cfcu.org.
• Never share personal information online with someone you don’t know. 
• Look for a publicly listed phone number that corresponds with the name of any “company” that has contacted you. 
• Never agree to pay for a product upfront without being certain of its legitimacy.
• Check your social media privacy settings on a regular basis.
• Never post anything that can be used to steal your identity.

STEPS TO TAKE IF YOU ARE A VICTIM OF A SCAM

If you’ve been victimized, here’s how to minimize the damage:

• Shut your computer and use another device to change your passwords.
• Put a fraud alert on your credit. 
• Let Community Financial know. We’ll watch your accounts and refuse to honor sketchy charges.
• Alert the Federal Trade Commission (FTC).
• Tell your friends to be aware of any random requests that may come from you. 

Your Turn: What social media scams have you noticed lately? What steps have you taken to protect yourself?