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Bank fraud expert warns Arizonans about vacation scams and other schemes to avoid

Bank fraud expert warns Arizonans about vacation scams and other schemes to avoid

PHOENIX (AZ Family) — Scammers always seem to be one step ahead. Just when you think you know what to pay attention to, something new pops up.

Here’s a new version of an old scam called Impersonation Scam. You receive a phone call or text message from your bank informing you that your debit card was used fraudulently, but it’s not your bank; is a scammer trying to scare you into making bad decisions.

Margarita Alvarez, a fraud expert at Wells Fargo, tells On Your Side that the Federal Trade Commission has documented that victims were defrauded of $2.7 billion using Impersonation Scams last year.

“The data is absolutely alarming,” Alvarez said.

Once a scammer convinces you that someone is using your card fraudulently, they’re actually tricking victims into thinking a bank representative will come to their home to stop the fraud, he said.

“We’ve seen numerous situations and examples where people say, ‘Well, let me come and get your debit card, or why don’t you proactively mail it to this general address?'” he said.

It may sound crazy, but people are falling for it.

Alvarez also said there has been an increase in scams based on Artificial Intelligence, also known as AI.

“What you’re left with is scammers working to be able to use AI to pose as a family member, or even getting into the details of being able to mimic their general voice,” he said.

Alvarez also said there has been an increase in cryptocurrency and investment scams. He says scammers are luring people into making fake investments with cryptocurrency, promising big, quick returns, and then disappearing with the funds.

Finally, with online shopping being so popular during the upcoming holidays, you need to avoid shipping and delivery scams. This is where the scammer pretends to be FedEx or UPS and tells people to click on a link about delivery issues. Don’t fall for this.

“Scammers also use this method to obtain information through similar tracking numbers, essentially asking you to be able to interact via text or through your public mobile device or email,” Alvarez said.

Remember, never share your personal information. Do not trust caller ID. Scammers are pros at making it look like the call is coming from your bank or posing as a legitimate banking representative. And don’t be pressured into anything.

Alvarez said scammers have been contacting him recently to scam him out of money. Little did they know, they were looking for a fraud expert who knew better.

“Staying vigilant is crucial, but if this type of activity could happen to me, can you imagine what is happening and the level of abuse that is happening to our average daily consumer?” he said.

Here are some top Wells Fargo fraud scams to watch out for and tips to protect yourself:

Common Impostor Scams:

  • Card “Receiving/Exchanging” Fraud: Scammers pretend to be bank representatives, claiming that your debit card has been compromised, and tell you they need to collect the card or direct you to mail it to them. They may even ask for your PIN as “verification”.
  • Artificial Intelligence Scams: Scammers can use AI to create deepfakes, images, or videos and then clone the voice of a loved one or trusted person to ask for emergency money.
  • Payment App Scams: Scammers send text messages or emails asking you to approve or decline a fraudulent payment or fee. If you respond, they may call you back, pretending to be a bank representative, and trick you into sending money (often via another P2P payment method, gift card, wire transfer, or by sending money directly to another account) or prevent further “fraud” from occurring.
  • Cryptocurrency and Investment Scams: Scammers manipulate people into making fake investments with cryptocurrency, promising big, quick returns, and then disappear with the funds.

Common Holiday Scams:

  • Package Delivery and Shipping Scams: Scammers send a fake email or text stating there is a problem with the delivery or shipment and provide you with a fake tracking link/code. Clicking the link may direct you to provide personal/financial information or may even cause you to install malware on your device.
  • Online Marketplace Product Scams: Scammers trick you by offering great deals or deep discounts that are not real. They may use fake websites, social media ads, a friend’s hacked social media account, or malicious links to steal your personal information or money.

Tips to Protect Yourself:

  • Wait and Verify: If you receive an unexpected text, email, or phone call, do not respond or click on any links. Verify the legitimacy of the communication.
  • Verify Recipient: Only send money to people you know, trust and whose identity you can verify. Once you confirm the money is sent, the money leaves your account and is often irrecoverable.
  • Set Alerts: Use account alerts and two-factor authentication, and monitor your accounts frequently.
  • Be careful: Anyone can encounter fraud. When in doubt, stop and get help.
  • Do Not Share Personal Information: Do not share your username, passwords, PIN numbers or access codes.
  • Don’t Trust Caller ID: Scammers can spoof legitimate phone numbers by changing caller ID.
  • Do Not Pressure: If someone asks you to pay using a gift card, cryptocurrency, or prepaid card, this is a clear sign of fraud.

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