More Scams to Watch For

As your credit union, we have a responsibility to keep you informed about scams that can impact your financial well-being. We cover a lot of scams in this blog, but today, I am going to talk about several that we have never discussed. These tactics may not be as popular as phishing, spoofing, or gift card fraud, but you can be sure that they are circulating. Don’t become a victim!

The Scam: You and I know that most people like puppies. Who else knows that? Scammers. I’m sure you’re wondering how someone could be so heartless to use a puppy in a scam. Let me explain. Those who live alone can become lonely and vulnerable. This is particularly true during COVID. Perhaps after the loss of a beloved pet or friend, they may be seeking companionship that a new puppy can surely provide. During an Internet search, they come across an adorable puppy who needs a new home – fast. The seller requests an adoption fee upfront, along with costs associated with transportation and potentially other fees that seem credible. The seller requests payment via a wire or prepaid card and then disappears. It becomes clear that there never was a puppy at all, and now the victim has lost a potential new pet and a substantial amount of cash.

Avoiding the Scam: Instead of scouring random links on the Internet, visit your local shelter or animal rescue websites. Any pet that is available for adoption will be listed there, plus you can arrange for a meet-and-greet, and learn what fees are associated with adoptions.

The Scam: Home ownership is the American dream, right? You work hard to afford a house, make payments on time, and maintain both the interior and exterior. After all, this is your biggest investment. When the opportunity to cash in on all your efforts comes, many homeowners are happy to jump at the chance. Homeowner scams can be hard to spot. You may receive an official notice in the mail encouraging you to have the value of your home reassessed. For a small upfront fee, you could save thousands. Sounds great, right? Except for one thing - the notice is a fake and your money is gone for good. Just like the postcard in my previous blog post, the information used to generate a fake notice is all public record.

Avoiding the Scam: Before you decide to perform any assessment on your home, do your research. Protect your investment by only working with verified entities. It pays to know who you are dealing with when you are considering an evaluation for a refinance, assessment for taxes, or even a reverse mortgage. Never respond to mailers. Instead, search for local providers with trusted reviews on Google. Contact them on a known, published number, or via their secure website.  Ask friends, neighbors, or family members who they might have used.

The Scam: Reverse mortgage scams are on the rise. The fraudster promises the victim cash or even a free home in exchange for the title on their current home.

Avoiding the Scam: NEVER sign your title over to anyone. Scammers convince victims to reassign their title by promising money or even a free home as part of the exchange. Don’t fall for it! When you enter into a reverse mortgage, you remain the home’s owner, and you are still responsible for paying property taxes, homeowners insurance, and other costs of maintaining your home. As such, the title remains in your name. Pay careful attention to your contract requirements when you agree to a reverse mortgage. Always use a legitimate lender, and it doesn’t hurt to have a family member or trusted friend available during the process. Ask questions, and know all of the answers before signing any loan documents. You may wish to consult a real estate attorney or financial advisor before finalizing the agreement.

Did you know that we offer reverse mortgages? If you are interested in applying for one, please call us at 703.914.8700, option 8, to speak to our Reverse Mortgage representative, Kimberly Petrey.

Is there something that you want me to post about? I want to hear from you! Leave a comment below or email me.

Krista Kyte is a personal finance blogger and personal banker with over 19 years of experience in the financial industry. Krista is passionate about helping our members understand their financial situations. She writes tips that help consumers reach and maintain financial security and start living the life they’ve always wanted.