Lending Scams and tips to avoid them

Three Questions to Spot a Gift Card Scam

Has this ever happened to you?

  • You’ve been hired for a job but asked to return some of the funds when your employer sent you too much money.
  • You meet someone online. They ask you to access their money for them and send it back.
  • You apply for a loan from a company, only for them to send you more than you need.

These examples are the most common types of fraud we are seeing lately. It is all but impossible to give a specific example of each type of fraud. However, the final result is ALWAYS the same—you owe the full balance and have none of the money. 

One of the most popular methods of scammers stealing funds is through the request of gift cards. They do this because once a gift card is sent, those funds are untraceable, and you cannot get your money back.

Thankfully, there are steps you can take to protect yourself. Ask yourself these simple questions:

  1. Is it too good to be true?

If it sounds too good to be true, it probably is. People usually do not give out free money.

  1. Does something feel off about the request?

When someone asks you to help them get their own money but will only accept gift cards, it is likely a scam. Consider what you would do in this person’s shoes. There are plenty of established methods for anyone to access their own money.

  1. Does the loan company seem legitimate?

Do the legwork before applying for any loan to confirm the company is established and legitimate. Often a simple internet search will provide you with the information you need.

Fraud is something no one wants to experience. At Notre Dame FCU we do everything in our power to prevent fraud, but the first line of defense is always you—our member-owners.

If you have any questions about fraud or are afraid you have become the victim of a scam, please reach out to us by visiting any of our branches or calling 800-522-6611. We are here to help! 

Please be vigilant and protect yourselves.

Nicholas Hughes Credit Counseling Coordinator

 

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