WASHINGTON — That’s not the credit union calling to warn a member about fraud—it’s a fraudster. Consumers across the country are being victimized by a growing wave of scams in which criminals impersonate credit card companies and CU and bank fraud departments and exploit fears of unauthorized transactions to trick victims into handing over sensitive information or moving money.
The scheme typically begins with a phone call, text or voicemail appearing to come from a legitimate credit card issuer warning of “suspicious activity.” But instead of protecting accounts, the callers are impostors seeking to gain access to them, according to reporting by The New York Times, The Wall Street Journal and federal agencies.
Authorities say the scams are part of a broader surge in impersonation fraud, now one of the fastest-growing categories of financial crime.
How it Works
Credit unions that want to warn their members about the scams will want to caution their cardholders that in many cases, victims receive urgent alerts about supposed fraudulent charges and are instructed to “verify” account details, provide one-time passcodes, or transfer funds to a “safe” account controlled by the scammer.
Among the tactics:
- Fraudsters spoof phone numbers to appear as legitimate FIs
- Callers pose as credit card fraud departments or investigators
- Victims are pressured to act quickly to “stop” fake charges
- Funds are redirected or credentials are captured for later theft
FCC Warning
The Federal Communications Commission has warned that robocall scams frequently impersonate banks or credit card companies, prompting consumers to return calls or share information.
Similarly, financial institutions report that scammers increasingly pose as fraud teams themselves, using convincing scripts and real-time interaction to build trust, numerous reports have noted.
Meanwhile, the rise of artificial intelligence is making these scams harder to detect. A recent survey found that one in four Americans has received a deepfake voice call, with scammers using AI to mimic real people and institutions, according to the New York Tims.
Experts say the technology allows fraudsters to convincingly imitate CU/bank representatives, complete with realistic tone and language, blurring the line between legitimate alerts and scams.
Losses can be significant. The Federal Trade Commission estimates total scam losses in the U.S. exceed $12 billion annually, with impersonation schemes among the leading drivers.
