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

PHOENIX (AZFamily) “It feels like scammers are always one step ahead.” Just when you think you know what to look for, they come up with something new.

Here’s a new twist on an old scam called the Impersonation Fraud. You receive a call or text message from your bank telling you that your debit card has been used fraudulently, but it is not your bank; this is a scammer trying to intimidate you into making bad decisions.

Margarita Alvarez, a fraud expert at Wells Fargo, told On Your Side that the Federal Trade Commission documented that fraud victims made $2.7 billion last year through impersonation scams.

“The data is definitely alarming,” Alvarez said.

She said that after the scammer has convinced you that someone has used your card fraudulently, they are now actually tricking victims into thinking a bank representative will come to their home to help stop the fraud.

“We’ve seen a lot of situations and examples where people have said, ‘Well, let me just drive by and come in and pick up your debit card, or why don’t you mail it to me at this general address in advance?’ she said.

It sounds crazy, but people fall for it.

Alvarez also said there has been an uptick in fraud based on artificial intelligence, also known as AI.

“Ultimately, scammers are working to be able to use AI to impersonate a family member, down to the details, such as being able to imitate their general voice,” she said.

Alvarez said there has also been an uptick in cryptocurrency and investment scams. She says scammers are manipulating people into making fictitious cryptocurrency investments, promising big and quick returns, then disappearing with the funds.

Lastly, since online shopping is so popular this coming holiday season, you’ll want to avoid shipping scams. Here the scammer pretends to be FedEx or UPS and asks you to click on a link about delivery problems. Don’t fall for it.

“Scammers use this method to also be able to obtain information through tracking numbers and ask you to be able to interact, you know, through text messages or through your mobile device or email,” Alvarez said.

Remember, never give out your personal information. Don’t trust caller ID. Fraudsters have a knack for making the call appear to be coming from your bank or sounding like a legitimate bank representative. And don’t put pressure on anything.

Alvarez said she was even recently contacted by scammers trying to scam her out of money. Little did they know, they called a fraud expert who knew better.

“It is very important to remain vigilant, but if this can happen to me, can you imagine what is happening and the level of abuse that is happening to our everyday average consumer?” she said.

Here are some of the top impostor scams Wells Fargo warns you should be wary of and tips to protect yourself:

Common impostor scams:

Fraud with the “Fetch/Replace” card: Scammers pose as bank representatives, claiming your debit card has been compromised and telling you they need to pick it up, or telling you to mail them the card. They may even ask for your PIN as “verification.”
Fraud using artificial intelligence: Fraudsters may use AI to clone the voice of a loved one or trusted person to create fake calls, images or videos and then ask for emergency money.
Payment app fraud: Fraudsters send text messages or emails asking you to confirm or decline a fake payment or charge. If you answer, they may call back, posing as a bank representative, and then trick you into sending money—often using another P2P payment method, a gift card, a bank transaction, or by sending the money directly to another account—to “reverse the payment.” payment” or prevent further “fraud”.
Cryptocurrency and investment fraud: Fraudsters manipulate people into making fictitious investments in cryptocurrency, promising large and quick returns, and then disappearing with the funds.

Common holiday scams:

Delivery and parcel fraud: Scammers send a fake email or text message saying there is a shipping or shipping issue and provide you with a fake tracking link/code. Clicking on a link may prompt you to provide personal/financial information or even install malware on your device.
Fraud with goods on online markets: Scammers lure you in by offering great deals or deep discounts that are not true. They may use fake websites, social media ads, a friend’s hacked social media account, or malicious links to try to steal your personal information or money.

Tips to protect yourself:

Please wait and confirm: If you receive an unexpected text message, email or phone call, do not respond or click on any links. Check the legitimacy of the message.
Confirm the recipient: Only send money to someone you know, trust, and can verify your identity. Once you approve the funds, the money leaves your account and often cannot be returned.
Set up alerts: Use account alerts and two-factor authentication and monitor your accounts frequently.
Be careful: Anyone can experience fraud. When in doubt, stop and seek help.
Do not disclose personal information: Do not share your username, passwords, PINs or access codes.
Don’t trust caller ID: Fraudsters can spoof legitimate phone numbers by changing the caller ID.
Don’t give in to pressure: If someone asks you to pay using a gift card, cryptocurrency, or prepaid card, this is a clear sign of fraud.

See a spelling or grammatical error in our story? Please click here to report this.

Do you have photos or videos of the latest news? Send this is for us here with a brief description.