Fraud Prevention

How to Spot Fraud

One thing to know about fraud is that fraudsters will always find new ways to try and scam people out of money or into giving their personal identifiable information like Social Security Numbers or online banking credentials. That's why it's so important for everyone to be vigilant about how to spot fraud in order to protect themselves. And remember: Avadian nor any other legitimate partner institution will ask you to provide your online banking username or password nor ask for access to your computer and ask you to log into your online banking account either.

Well-Known Scams

Here are a few well-known scams that you should be aware of:

• Cash Flipping occurs when fraudsters request banking information with the promise to send money if you send some of the money to other people. The money gets deposited to the account so the transaction appears legitimate until money starts leaving the account - in higher amounts than what was initially deposited. 

• Prize Scams. Ever get a notice that you won a prize for a contest you didn't enter? Sounds too good to be true; that's because it is. This is a scam where you submit personal and private information in order to redeem your "prize." And the fraudsters get the real prize: your info. 
• Act-Now Scams. Similar to the prize scam, Act-Now scams work to create pressure and a sense of urgency for you to submit your information to receive "your prize" or risk losing it. 
• Relative/Loved One in Trouble Scams. Fraudsters know how to tug at heart strings, and the Relative/Loved One scams find the scammer impersonating your family members or friends and claiming to need assistance that requires money or your personal and/or account information in order to defraud you.
• Random Check Scams. Have you ever opened an envelope to find a check inside you weren't anticipating? Well, if you weren't expecting it, you probably shouldn't try to cash it. 
• Fake Website Scams. Fraudsters build websites that mirror legitimate businesses or even government websites to pry your personal information out of you. 
• Ghosted Phone Number Scams occur when you receive a call from a phone number that looks familiar but is really a scammer "ghosting" a phone number as a scheme to get you to answer the call. They then try to persuade you to give out personal information since the phone number appears legitimate. 
• Car Wrap Scams. This occurs when an individual believes they are being paid to have their personal vehicle wrapped in advertisements for a business. The individual believes that they will make money by driving the car displaying ads during their normal day-to-day activities. However, they received a fake check and are instructed to use the check to pay to have the advertisements placed on the car. But the check is fraudulent and the individual has already sent money to the fraudsters before the check clears their account. 
• Fake Job Offer Scams work by offering money as an "advance" on a job before it's started. Many times, the fraudsters will send the "advance" under the guise of providing the funds to the individual to purchase supplies for their job. In reality, the individual receives a fraudulent check and send money orders or gift cards to the fraudsters. 
• Compromised Account Scam individuals receive a phone call or email indicating a possible fraudulent charge on your account or card to obtain personal information like bank account information or your online banking credentials. 
• Fake Antivirus Software Pop-ups appear on your device, or you receive a call indicating that your device or computer has been compromised. Fraudsters request control of the device to assist you or they ask for your online banking credentials. 

How to Stop Fraud

• Don't give out any personal information. Financial institutions and most major organizations have to protect your information by never asking or sharing personal identifiable information. 
• If the email or phone call seems strange or out-of-place, it's probably fraud. Avadian will never call you or email you asking you to share any personal information. 
• When in doubt, don't. That's what our head of IT Security always says. If something seems too good to be true or strange, it probably is. Don't answer calls from numbers that are unfamiliar or click on emails if the content of the email seems off-putting. 
• Identify how scammers ask for money. If you receive an email asking for money, these scammers will typically ask you to send funds via money order, Green Dot Cards, iTunes cards, or gift cards. 
• Stop and ask someone else before you send money. Get a second opinion before you send money. 

How to Report Fraud

If you find that you are victim of fraud, please be sure to do the following:

• Contact Avadian and any other financial institution you use immediately and report what has happened to put your accounts on hold.
• Take steps to protect your information. Change your username and passwords for online banking frequently and sign up for identity theft protection.
• Notify the credit bureaus. If you find that you have had your personal identifiable information stolen, notify the credit bureaus immediately to freeze your accounts. 
• Report scams to the Federal Trade Commission. The FTC is the major watchdog for scams, so if you find yourself a victim of a scam, you can report this information here.