On a regular
basis we read and hear about people becoming financial victims of scams and
fraud. It was thus very rewarding to know that North Alabama Educators Credit
Union was instrumental in preventing an elderly member from being cheated out
of $10,000.00 from local con artists. The credit union staff did an excellent
job of identifying the red flags that something was amiss and then taking the
proper steps to prevent the member from losing her money.
The scam
attempt took place on July 17th of this year at our main office
location. An elderly member had come into the office to withdraw $10,000.00
cash from an account that she had here at the credit union. She was specific
about the need for cash and declined any recommendations for a check for that
amount. The staff asked questions about the purpose of the cash withdrawal
which was met with concerns by the staff since it was indicated that the funds
would be returning soon. There was also an unknown person with the member who
was waiting in the lobby for the transaction to be completed. These were
definite red flag warnings since it appeared as if some form of questionable investment
was possibly taking place. Per standard policy, the credit union employee
informed the member that a 15-minute wait was required for larger cash
withdrawals. It was during this 15-minute wait period that the unknown person
sitting in the lobby decided to leave the office and proceeded to walk down the
street. Most likely, the con artist was fearful that police had been called to
investigate the transaction.
Additional
private conversations with the elderly member did reveal that she did not know
the two people (one had stayed outside) she had brought to the credit union.
They had showed our member a “wad of money” and her cash transaction was going
to be a money exchange for a profit. Known as the Pigeon Drop Scam, the victim
loses their money rather than making money. Management was able to convince the
member to redeposit the cash and speak to the police about the people involved
in the fraud attempt.
Members are
encouraged to exercise great caution when dealing with strangers on any
investment offer that requires cash. Unfortunately, the elderly are often
targeted for these type of scams. Luckily this credit union example had a happy
ending!
