Wednesday, July 30, 2014

Financial Scam Avoided - Success Story

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!