How to Defend Against the Latest Scams

Every day, scammers are devising new tactics to trick you out of your personal information and hard-earned money. And the numbers don’t lie. According to the Federal Trade Commission (FTC), U.S. consumers lost $10 billion to fraud in 2023 alone—a 14% increase from the previous year. Whether it’s a too-good-to-be-true job posting or a convincing message from someone posing as a government official, these threats are becoming harder to spot. The consequences can be devastating, leading to drained bank accounts, ruined credit, and countless hours spent trying to restore your financial security.

So, what can you do? The key is to stay informed. The more you know about the latest scams, the better equipped you’ll be to protect yourself and your finances.

Identity Theft: The Persistent Threat

Identity theft remains one of the most damaging types of fraud, where your personal information—such as Social Security numbers, bank accounts, or credit card details—is stolen and used without your permission. The repercussions can be severe, leading to unauthorized purchases, drained accounts, and long-term credit damage.

●      Phishing Emails and Texts: These remain a common entry point for scammers. Posing as legitimate companies, they trick you into clicking on links or providing personal information. The sophistication of these attacks is increasing, with scammers often mimicking real brands with alarming accuracy.

●      Data Breaches: Hackers continue to target large companies, accessing databases filled with sensitive information. Even the most secure organizations can fall victim, making it vital to monitor your accounts for unusual activity.

●      Social Media Oversharing: Seemingly harmless details you share on social media can be pieced together by scammers to answer security questions or gain access to your accounts.

How to Protect Yourself:

●      Be skeptical of unsolicited messages asking for personal information, even if they seem to come from trusted sources.

●      Regularly update your passwords, and use unique passwords for different accounts.

●      Limit what you share on social media, especially details that could be used to verify your identity.

Fake Job Offers: The New Employment Scam Epidemic

The rise in remote work and economic uncertainty has led to a surge in job-related scams. Scammers prey on job seekers by offering fake employment opportunities that seem too good to be true.

●      The Setup: You might receive an email or see a job posting that offers high pay, flexible hours, and minimal requirements. After expressing interest, you're asked to provide personal information like your Social Security number or bank account details for "direct deposit."

●      The Scam: Often, scammers will ask you to pay upfront for training materials, background checks, or equipment, which you never receive. Some may send a fake check as an "advance payment" and ask you to return a portion of the funds—only for the check to bounce later, leaving you on the hook.

How to Protect Yourself:

●      Always research the company before applying. Look for reviews or news articles about the company, and check if they have a legitimate website.

●      Be wary of job offers that seem too good to be true or ask for personal information early in the process.

●      Never pay for a job. Legitimate employers will never ask you to pay for training, background checks, or equipment.

Student Loan Scams: Exploiting Confusion Amid Regulatory Changes

As student loan regulations continue to evolve, scammers are exploiting the confusion to target borrowers. These scams are particularly dangerous because they often masquerade as government programs or legitimate loan servicers.

●      The Approach: Scammers may contact you by phone, email, or text, claiming to offer help with loan consolidation, lower payments, or navigating new rules—if you provide personal information or pay a fee.

●      The Scam: These scams can result in identity theft or money lost to fraudulent services that offer nothing in return. Some scammers also exploit language barriers, targeting non-English speakers with false promises.

How to Protect Yourself:

●      Know that the government will never ask for payment to assist with student loans.

●      Never share your FSA ID login information.

●      Contact your loan servicer directly if you have questions. Do not trust unsolicited offers of help.

●      Be cautious of anyone offering quick loan forgiveness or consolidation for a fee—these are often scams.

Fake Check Scams: Targeting Young Adults on Social Media

Scammers are increasingly using social media platforms to target young adults with fake check scams. These scams promise quick cash or prizes, but the consequences can be financially devastating.

●      The Lure: You might receive a message on social media from someone claiming they’d like to use your photo, you’ve won a prize, have been selected as a mystery shopper, or are needed to move money. They send you a check and ask you to deposit it, then send a portion back, often under the guise of covering fees or forwarding funds to a third party.

●      The Catch: The check is fake, and by the time your bank realizes it, the scammer is long gone, leaving you to repay the entire amount.

How to Protect Yourself:

●      Be skeptical of anyone who sends you a check and asks for a portion of the money back. This is a major red flag.

●      Avoid depositing checks from strangers, especially if they come with promises of easy money.

●      Understand that even if your bank releases funds from a check, it doesn’t mean the check is legitimate. Always verify the source.

Best Practices for Protecting Your Information

While it may seem like the digital world is full of dangers, there are plenty of steps you can take to keep your information safe. Here are some best practices:

●      Use Strong, Unique Passwords: Don’t reuse passwords across multiple sites. Opt for a mix of letters, numbers, and special characters, and consider using a password manager to keep track of them.

●      Enable Two-Factor Authentication (2FA): 2FA adds an extra layer of security by requiring a second form of verification beyond just your password.

●      Monitor Your Accounts Regularly: Keep a close eye on your bank and credit card statements for any unauthorized transactions. If you notice anything suspicious, report it immediately.

Tip: If you’re a Hughes member, you have access to CreditSmart, a comprehensive Credit Score program, that helps you stay on top of your credit. You get your latest credit score and report and an understanding of key factors that impact your score. Plus, you can monitor your credit with important alerts and identify and dispute credit bureau errors.

●      Switch to eStatements: Paper statements can be intercepted or stolen from your mailbox. Switching to eStatements can reduce this risk and help keep your financial details secure.

Tip: Hughes Federal Credit Union is offering a chance to win $1,000 each month just for being an eStatement member, whether you’re new to eStatements or have been using them for years. It’s a simple step to protect your account information while also potentially winning big.

What to Do If You’re a Victim

If you suspect that you’ve fallen victim to a scam or identity theft, acting quickly can minimize the damage. Here’s what you should do:

●      Report the Fraud: Immediately contact your financial institution to report the fraud. They can freeze your accounts and help you recover lost funds.

Tip: Hughes members can report fraud by finding the appropriate form on HughesFCU.org/Forms and following the instructions.

●      Place a Fraud Alert: Contact one of the major credit bureaus (Equifax, Experian, or TransUnion) to place a fraud alert on your credit report. This will make it harder for thieves to open new accounts in your name. You can also consider freezing your credit to prevent unauthorized access.

●      File a Report with the FTC: The FTC provides resources here and guidance on recovering from identity theft and protecting yourself from future scams.

Stay Vigilant and Protect What’s Yours

The digital age has brought incredible conveniences, but it has also given rise to increasingly sophisticated scams. Staying ahead of these threats involves more than just knowing what’s out there, it’s also about taking action to protect yourself. By adopting strong security habits, staying informed about the latest fraud tactics, and being vigilant in your online and offline interactions, you can build a robust defense against identity theft and scams. Protecting your personal information isn’t a one-time effort but a continuous commitment to safeguarding your financial well-being.