Get Smart About Scams – Crypto and Wire Scams

Intro – What is the scam?

Imagine for a moment that a stranger reaches out to you on social media or a dating app, wanting to connect and get to know you. The conversation seems innocent enough, and you seem to have a lot in common. As your relationship deepens, they ask if you’re invested in crypto, or if you could help them pay for a medical emergency. The scammer tries to build trust with you before they attempt to take your money.

In other cases, these scammers will appear out of nowhere, pretending to be a legitimate organization like the IRS and demand immediate payment on a debt or fine. Instead of the long game of building a relationship with you, they rely on urgency and fear tactics to get you to pay.

Ultimately, they want you to send money without a trace so you never get a chance to try to retrieve the money once it’s sent. That’s where wire transfers and cryptocurrency come in.

Red flags to look out for.

Some common red flags to help you identify this type of scam are:

1. Someone contacts you out of the blue, whether to simply connect or demand payment from you.
2. They may take time to get to know you for days, weeks or even months before bringing up the topic of investing in cryptocurrency or asking for money.
3. They may also create a sense of urgency, whether they say you owe them money or claim to have a medical or family emergency.
4. If you agree to send money, they will insist you can only pay in a certain way: wire transfer or cryptocurrency.
5. If they bring up cryptocurrency, they may direct you to an obscure website that you’ve never heard of and has limited search engine results.
6. When talking about their crypto platform, the scammer may guarantee huge returns and that you will get rich quick.
7. This person may use AI or deep-fake technology to imitate a famous person. Always be cautious if you receive a private message from a “celebrity.”
8. Common questions that we receive regarding this scam

What is cryptocurrency?

Cryptocurrency is an alternative type of money that only exists in digital form. It gained popularity as a type of currency that exists outside of banks, governments and regulations. The trade-off is that it is very risky and there’s a strong likelihood of loss and potential scams.

What should I do if someone calls or messages me to ask for money?

Refuse to send them money if you don’t know this person or have never met them in person, . If they call you out of the blue, hang up immediately if they pressure you for payment or initiate urgency. If they claim to be part of an organization like your financial institution, the IRS or FTC, you can hang up and call the official number to confirm if the phone call was legitimate.

Can I get my money back if I fall victim?

While we do everything we can to help our members recover their money, in most cases the money is unretrievable when sent via wire transfer or cryptocurrency.

How can I be safer online?

Always maintain a level of caution with anyone you’ve never met in person. Even if you have video chatted and they seem perfectly normal, it’s better to be safe than sorry and decline to send money if they ever ask. The face of a scammer can sometimes be a friendly one.

Outro

At Educators Credit Union, we’re committed to ensuring the safety of our members’ accounts. If you suspect you may have fallen victim to fraud, we are here to assist our members every step of the way. Please give us a call at 262.886.5900. Take care and stay safe. Insured by NCUA. Membership eligibility required.