Requests for large, fraudulent corporate checks payable to businesses, often construction companies, and to the members, are on the rise and happening everywhere. Victims inform their bank or credit union that the funds are intended for home improvement projects, which is a common cover story scammers have planted.

Elderly members continue to be frequently targeted by these impersonation schemes. Fraudsters often spend days or weeks building trust, convincing victims that they are working with legitimate government agencies, reputable technology companies, or even the victim’s own financial institution. Once trust is established, victims may be directed to withdraw funds, obtain cashier’s checks or corporate checks, or move funds to accounts controlled by the scammers. The scammers’ frequent ruse is to inform their victim they need to move funds to “keep it safe” or “protect their money.”

The tactics used by scammers are also evolving. Historically, victims were commonly instructed to send wire transfers. Wires are still requested by scammers to have funds sent quickly, but more recently, fraudsters have shifted toward requesting cashier’s checks, large cash withdrawals, and, in some cases, even directing members to mail cash through the postal service. These methods can make it more difficult to recover funds once they have been sent, allowing criminals to access the money quickly and anonymously.

How members can protect themselves

You can reduce the risk of becoming a victim by remembering a few important red flags:

• No legitimate government agency, law enforcement organization, Microsoft representative, or financial institution will instruct someone to move money to a “safe” account.
• Be suspicious of unsolicited calls, emails, text messages, or pop-up warnings claiming an account has been compromised or is under investigation.
• Never act under pressure. Scammers often create a sense of urgency and discourage victims from speaking with family members or financial institution employees.
• Verify claims independently by contacting the organization directly using a trusted phone number or website, not the contact information provided by the caller.
• Be wary of requests to purchase cashier’s checks, withdraw large amounts of cash, mail cash, or send money to unfamiliar businesses or individuals. Payment in gift cards or cryptocurrency should also be met with the same hesitation.
• Discuss large or unusual transactions with a trusted family member, friend, or financial institution employee before proceeding.

What to do if you become a victim

If you believe you have been targeted or have already sent money to a scammer, you should act immediately by:

1. Contact MSGCU as soon as possible to report the fraud and determine whether any transactions can be stopped or recovered.
2. File a report with local law enforcement and obtain a copy of the report for documentation purposes.
3. Report the scam to the FTC through ReportFraud.ftc.gov.
4. Monitor account activity closely and report any unauthorized transactions immediately.
5. Place fraud alerts or security freezes with the major credit bureaus if personal information has been compromised.
6. Inform family members or caregivers, particularly if the victim is an older adult who may continue to be targeted by the same criminals.

As impersonation scams continue to evolve, awareness remains one of the most effective defenses. Early intervention and education can help prevent significant financial losses and protect vulnerable individuals from exploitation.

Category: Scam Alerts