Over the last few years, social media scams have exploded, with fake Twitter and Facebook profiles increasing by 100% in just one year. That also means there are several types of social media scams, most which involve a phishing scheme component.

Here’s how it happens: Scammers try to “friend” you by creating a bogus profile or cloning the profile of someone you know. Then, they’ll get you to share personal information by asking you random questions. Meanwhile, you’re unknowingly giving away the security questions for your personal passwords. By the time you realize what’s happened, it’s too late.

Other social media scams involve fake offers and promotions. To get your hands on the goods, though, you’ll first need to share your personal information.

In another scam, fraudsters reach out to you while impersonating a financial institution. They’ll claim to have incredible rates on loans. And, if you apply for this “loan,” the scammers might empty your accounts or trick you into making upfront payments to qualify.

Here’s how to spot, prevent and react to social media scams:

How to spot a scam

Watch for these red flags:

• The posted offer sounds too good to be true.
• You’re asked to make an upfront payment for a loan application.
• You’re urged to act immediately or risk missing the offer.
• The scammer claims to represent a legitimate financial institution, but when you call them to discuss the offer, no one knows what you’re talking about.
• You’re asked to share sensitive information in the initial stages of the application.
• A social media “friend” keeps asking you random questions.

Preventing social media scams

Preventing social media scams isn’t difficult. All it takes is some common sense and practical steps.

• Think before you click. Ignore anything suspicious or intrusive.
• If a lender has contacted you, check their legitimacy with the Better Business Bureau.
• Never share personal information online with someone you don’t know.
• Look for a publicly listed phone number that corresponds with the name of any “company” that has contacted you.
• Never agree to pay for a product upfront without being certain of its legitimacy.
• Check your social media privacy settings on a regular basis.
• Never post anything that can be used to steal your identity.

If you need money and aren't sure where to turn,  contact us about a personal loan. We are happy to help, and you'll know you're getting a good deal. 

If you are a victim

If you’ve been victimized, here’s how to minimize the damage:

• Shut your computer down and use another device to change your passwords.
• Put a fraud alert on your credit with the 3 credit reporting agencies.
• Let us know. We’ll watch your accounts and refuse to honor sketchy charges. 
• Alert the Federal Trade Commission (FTC).
• Tell your friends to be aware of any random requests that may come from you.

It is important to note that MCCU will never solicit your personal information over the phone, by email, or using social media. If you encounter anything that appears to be from us that appears fraudulent, please contact us immediately.

Your Turn: Have you ever been targeted by a social media scam? Tell us all about it in the comments!

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