Protecting Yourself from Fraud

Identity theft is a serious crime. According to the Federal Trade Commission, consumers reported losing more than $10 billion to fraud in 2023. As thieves look for more ways to steal information and money from unsuspecting consumers, SAFE Credit Union is staying one step ahead to bring you information on how to protect yourself and avoid financial loss.

This year’s fraud series includes help from The California Department of Financial Protection and Innovation, or DFPI, which investigates fraud crimes.

Tax Related Fraud

*Disclaimer: We are not licensed tax professionals. This video and content related is for informational purposes only. Please contact a licensed tax professional or head to IRS.gov for additional guidance on tax fraud.

Tax related fraud is increasingly becoming a concern, which is why it is important to stay diligent. Fraud can happen in many ways: someone could file a tax return under your Social Security number, or an impersonator could call or text you in an attempt to steal your information. Here are some things to keep in mind to protect yourself from tax fraud:

Remember that typically the IRS will never call or text you.
Pay attention to letters you receive from the IRS. Only contact the number on the letter you receive to avoid impersonators.
Keep your tax documents organized.
Consider going paperless rather than receiving important tax documents in the mail.
File early and set up a unique IRS PIN for additional security.

To report tax related fraud, check out this website: https://www.irs.gov/help/tax-scams/report-a-tax-scam-or-fraud

Employment Scams

Employment scams can add to the stress of an active job search. Unfortunately, fraudsters look to take advantage of you and your finances with new job-related scams. According to CNBC, consumers reported $367 million in losses related to this type of fraud. To stay safe while looking for a new job, here are some tips:

Avoid job offers that ask you to pay for training or equipment.
Don’t deposit checks you are unfamiliar with. Know how check deposits work and review the item with your financial institution before depositing. If a company is asking you to send a portion back, it is highly likely this is a fraudulent check, and it will be returned. Returned checks come with hefty fees and damage your relationship with your financial institution.
Be on alert for red flags like if the employer only communicates via email, text, or WhatsApp.
Search the company on the Better Business Bureau website and research the internet for scams related to this company or site.

Source: https://www.cnbc.com/2024/07/07/job-scams-surged-118percent-in-2023-aided-by-ai-heres-how-to-stop-them.html#:~:text=Consumers%20reported%20losing%20%24367%20million,%22%20%242%2C000%2C%20the%20FTC%20said.

Imposter Scams

Last year, we told you about how to identify and protect yourself from AI phone scams. You can check out that video here: Keeping Your Identity SAFE (safecu.org) Because technology and AI are continuously developing, identity thieves use them in a variety of new ways to steal your information and your money. These imposter scammers will call, text, and email you claiming to be a popular business. They will entice you by evoking emotions like fear and worry, while trying to coax you to do something like click a link or provide personal information. Here are some tips to help you avoid falling victim:

Never click a link you receive via text or email, even if you believe it’s coming from a legitimate company.
Create unique passphrases with your friends and family to distinguish between a real emergency and a scam.
Don’t respond to a text or email claiming to be your bank. Instead, contact your bank directly.
If the offer is too good to be true, it most likely is. Gift cards, sweepstakes, and free items are ways scammers entice you to click a “phishy” link.