Fraud Files: How My Loved One Lost $16k
And How Easily It Could Happen to You.
The following are true events of fraud and loss by a BHFCU employee’s family member. These events provide an important window into how fraudsters work and lessons on what to avoid.
You hear about people being taken by fraudsters for a bunch of cash and wonder how it could ever get that far. The ‘bad actors’ must be working from some list, praying on people who don’t know any better or don’t have a support system. I was someone who believed in these extreme circumstances. That is until someone I love was targeted in a complex social engineering scheme and lost $16,000.
I’ll let that sink in.
Now, I’m on a mission to make sure what happened to her doesn’t happen to someone else. Let’s start by defining social engineering.
so·cial en·gi·neer·ing
/ˌsōSH(ə)l ˌenjəˈniriNG/
(in the context of information security) the use of deception to manipulate individuals into divulging confidential or personal information that may be used for fraudulent purposes.
The Computer Pop-up That Led to a Phone Call.
While perusing the new model year of her favorite car online, a pop-up appeared on her laptop screen, locking her computer. The pop-up urgently notified her that she needed to ‘call Microsoft’ using the provided phone number. This was the first warning sign. It’s crucial to do your own research and find/verify the phone number yourself. We may never know what led to the pop-up, but it’s always wise to exercise caution when clicking.
The Phone Call That Led to More Phone Calls.
Panicked about the prospect of her information being at risk, she called the number. ‘Microsoft’ informed her that she had been hacked. They then suggested she connect with her bank to secure her accounts. And guess what, they provided her with another number. The situation could have stopped here by questioning a computer provider’s connection with a financial institution or by looking up a number herself.
Social Engineering at Work.
Thanks to websites like LinkedIn, it’s not difficult to find the name of a real person working for a company in your area. That’s why when my loved one called the fraudster’s provided number, she was met with someone who a quick Google search would confirm worked at her financial institution. Impersonating a real worker, they planted the seed that her large national bank chain had rampant internal fraud in connection with international crime circles. While this may sound far-fetched, they applied pressure and urgency in their conversations with her. Unluckily for her, she lives alone leaving her without someone to bounce it off in the moment.
How They Scared Her into Silence.
They kicked it up a notch, sharing that her phone might also be compromised. The biggest red flag was this, they warned fraudsters were listening to her conversations, and if she called loved ones, they would steal her money immediately. Again, with a clear mind, this may seem silly to believe, but caught up in the moment, anything is possible.
Setting the Plan into Action.
At this point, they knew they had her. She drove to the nearest branch of the bank she was supposedly talking to and withdrew all the cash she could. Another red flag, she was told to lie to the teller about why she needed the money because they may be in on the internal fraud scheme. (It was not without questioning from the tellers, but my loved one is stubborn.) And then, with the fraudster on the phone, she drove to multiple machines and converted her $16,000 emergency fund into Bitcoin, never to be seen again.
The Aftermath.
Luckily, we intervened before the fraudsters could convince her to liquidate more of her assets to ‘protect them’. (Yes, she was still on the phone when we finally got to her 24 hours later.) Now, almost six months removed, I still feel a deep sense of failure. Even with someone like me, who educates about these scams for a living, she fell victim. And now my loved one will never trust the way she once did, which is perhaps a silver lining.
So, What Does This All Mean for You?
Nothing can fully prepare you for the moment a fraudster targets you. If a positive outcome can come from this situation, let it be these learnings.
- Trust Your Instincts. If something seems off, disengage.
- Revisit the Signs. Remind yourself regularly. With sticky notes on your fridge or a digital note on your phone.
- Take a breath. When something feels wrong, ask questions and slow down.
Help with my mission! Share this article with your loved ones. The more stories we read and learn from, the more ready we are to put up a fight against fraud. And remember, if something doesn’t feel right on a call, disengage! I promise any of us at the credit union will applaud you for it when you call back.
