Don’t Fall for Card Cracking Scams

 

Need a little extra cash?

 

These days – who doesn’t?

Unfortunately, there’s a new scam going around called card cracking that targets folks who are eager to earn money fast.

These scammers especially prey on:

High school and college students

People who are recently unemployed

Single parents

Military members

And older adults

Card cracking is a form of bank account fraud that can leave victims owing thousands.

And – even more serious – there is accountability on the part of these victims if they participate in the scam.

Let’s look at how card cracking works, how to stay safe, and who to turn to if you’ve been targeted.

Here’s how a card-cracking scam typically happens:

You’ll see a post or get a direct message on social media claiming that you can make “easy money” – all you need is a bank account and a debit card.

The scammer will convince you to give over your debit card and your private account information – like your PIN and online credentials.

They’ll use this access to your account to deposit one or more fake checks for large sums into your account. They might deposit the check remotely through a mobile app or use an ATM.

These days, a lot of fake checks look just like the real thing – and by law your financial institution has to make funds available before checks clear – so money may show up in your account before the scam is uncovered.

As soon as the money is in your account, the scammer will withdraw cash from an ATM using your card.

At this point, they may share a portion of the proceeds with you. This kickback is the “easy money” you were promised in the beginning.

The fraudster may then instruct you to call your financial institution and report your card as lost or stolen – or your personal information as compromised – so that the institution will reimburse you for your lost funds.

But, if you file a false claim, you could be considered a co-conspirator to fraud and face criminal charges.

Here are some tips for how to stay safe:

Don’t respond to online solicitations for making fast cash – if you get a message like this, ignore it.

Don’t share your debit card, or sensitive info like your PIN and online credentials, with anyone.

Don’t rely on checks from strangers – you’re ultimately responsible for reimbursing your financial institution for a fraudulent check.

And – don’t be tempted into filing a false fraud claim with your financial institution – it never pays!

If you’ve been tricked into giving a stranger access to your account:

Contact your financial institution right away.

If the scammer contacted you on social media, alert the site.

And – file a report to the Federal Trade Commission.

Remember these tips – and help crack down on scams!