Can you believe what you see? At a time when reality can be manipulated with a few clicks of a mouse, you really can’t. The rise of deepfake technology poses significant challenges to our society. Deepfake scams refer to synthetic media created using artificial intelligence techniques. They typically involve superimposing existing images, videos, or audio onto source material. Initially hailed for their entertainment value and filmmaking potential, deepfakes have become a tool for sophisticated scams, raising concerns about misinformation, privacy breaches, and financial fraud.
Deepfake Scams Blur the Lines of Reality
Imagine receiving an urgent video message from your boss or a loved one instructing you to transfer a substantial sum of money to a specified account. The urgency in their tone and the familiarity of their voice leave little room for doubt. Except unbeknownst to you, the video is a meticulously crafted deepfake, and the account belongs to a scammer. This scenario is no longer hypothetical; it represents a growing trend in cybercrime where fraudsters leverage deepfake technology to deceive individuals and organizations.
One of the most alarming aspects of deepfake scams is their ability to blur the line between reality and fiction. Unlike traditional forms of fraud, which often involve crude impersonation tactics, deepfakes can convincingly mimic the appearance and voice of their targets, making detection increasingly tricky. With advances in machine learning algorithms and access to vast amounts of publicly available data, fraudsters can create high-quality deepfakes indistinguishable from genuine content.
The Rise of Deepfake Scams: A Dangerous Case of Deception
Consider the case of a prominent CEO whose likeness is manipulated to endorse a fraudulent investment scheme. Using deepfake technology, scammers can generate videos featuring the CEO promoting the scheme with unwavering confidence and authority. These videos, circulated on social media platforms or sent directly to potential victims, exploit the trust and credibility associated with the CEO’s image, luring unsuspecting individuals into financial traps.
Moreover, deepfake scams extend beyond video content to audio recordings and text-based communications. Voice cloning algorithms can accurately replicate a person’s speech patterns and intonations, enabling fraudsters to impersonate individuals over the phone or through voice messages. Similarly, natural language processing techniques can generate written messages that emulate the style and tone of specific individuals, further facilitating deception in email scams and social engineering attacks.
Combatting Deepfake Scams
As deepfake technology continues to evolve, combating its misuse requires a multifaceted approach encompassing technological innovation, legislative measures, and individual vigilance. While technical solutions such as deepfake detection algorithms hold promise in identifying synthetic media, their effectiveness still needs to be improved, given the rapid advancements in deepfake generation techniques. Legislative efforts to regulate the creation and dissemination of deepfakes are essential to deter malicious actors and hold them accountable for their actions.
However, in the absence of foolproof safeguards, individuals must take proactive steps to verify the authenticity of digital media and protect themselves against deepfake scams. Here are some strategies to consider:
- Source Verification: Before trusting any digital content, verify its source and authenticity through reputable channels or independent verification services. Look for corroborating evidence or reach out to the purported sender directly to confirm the veracity of the communication.
- Critical Analysis: Examine content closely to look for inconsistencies and exercise critical thinking when encountering suspicious or sensationalistic content online. Question the context, consistency, and credibility of the information presented, and be wary of content that evokes strong emotional responses or promotes unrealistic promises.
- Technical Tools: Leverage technological tools and resources designed to detect deepfakes, such as image and video analysis software or browser extensions that flag potentially manipulated content. While not foolproof, these tools can serve as an additional layer of defense against fraudulent media. One such tool is Intel’s FakeCatcher, a technology that can detect fake videos with a high accuracy rate.
- Security Awareness: Educate yourself and others about the risks associated with deepfake scams and the tactics employed by fraudsters. Stay informed about developing trends in cybercrime and refresh your knowledge of cybersecurity best practices to mitigate potential threats. Read the Choice Words Blog regularly to stay updated on the latest scams.
- Two-Factor Authentication: Implement robust security measures, such as two-factor authentication and encryption, to safeguard sensitive information and block unauthorized access to your accounts and devices. Be vigilant about phishing attempts and avoid clicking suspicious links or downloading unknown attachments.
Stay Alert for Deepfake Scams
By adopting these proactive measures and remaining vigilant in the face of evolving threats, individuals can better protect themselves against the dangers of deepfake scams. While the spread of synthetic media presents formidable challenges, it underscores the importance of digital literacy, skepticism, and resilience as AI evolves. By staying alert for potential AI scams such as deepfakes, we can safeguard the integrity of our online interactions.
Read more on AI scams in our blog, “Defending Your Household Against AI Voice Scams.”
Are you tired of constantly paying ATM fees? Those charges can add up over time. But don’t worry; there’s a simple solution – as a member of Choice One, you can take advantage of our surcharge-free ATMs through various networks. These networks allow our credit union members to access various ATMs without incurring surcharge fees.
Choice One members have access to tens of thousands of accessible ATMs that are part of the Co-Op Shared Branch, CU Dollar (CU$), Allpoint, and MoneyPass surcharge-FREE ATM networks. Access to surcharge-free ATMs is one of the most important perks of Choice One membership. It provides fast access to cash without paying high ATM surcharge fees.
Seek Out Surcharge-Free ATMs to Save
ATM surcharge fees are charged when someone uses an ATM outside your credit union or bank’s network. That’s why it’s so important to take advantage of the surcharge-free ATMs that come as a benefit of Choice One membership. Why spend the time to search for surcharge-free ATMs? Paying $3 or $4 every time you withdraw cash can add up over time.
Let’s break it down. If you withdraw cash from out-of-network ATMs twice a week, each time paying a $3.50 surcharge fee, that’s $7 a week, $28 a month, and a whopping $336 a year! Just by using surcharge-free ATMs, you could save hundreds of dollars annually.
Finding Surcharge-Free ATMs Near You
Tap the links above or look for the Co-Op Shared Branch, MoneyPass, CU$, and Allpoint logos to find surcharge-free ATMs near you or when traveling. Easily search by city, zip code, or county. In addition to surcharge-free ATMs that can be found at many credit unions and other financial institutions, the Allpoint network includes many conveniently located in local Walgreens, Rite Aid, CVS, and Target stores.
Whether through shared branch networks, online resources, or mobile apps, the key is to plan ahead and seek out ATMs that won’t charge fees. Finding surcharge-free ATMs is always smart since charges can add up. It’s worth the savings to take the time to search the links we provided above and familiarize yourself with surcharge-free ATMs near your home, near your place of work, and in your travels.
The next time you need cash, remember to choose wisely and keep more money in your pocket. Tap to learn more about the Choice-One surcharge-free ATM network and our Shared Branching Network.
Embarking on the adventure of purchasing your first home can feel overwhelming, with so many steps and unknowns along the way. At Choice One Community Credit Union, we’re here to help. Our comprehensive home buyer’s guide is designed to walk you through the entire process, ensuring you’re well-informed and confident from start to finish. Let us guide you, step by step, towards unlocking the door to your dream home.
Step 1 – Focus on Your Credit Score
Up until now, you may not really have had any reason to prioritize your credit score. That needs to change. A higher credit score means a better chance of getting approved for a mortgage loan while securing a more competitive rate. It might not seem like a lot, but just a 1% rate difference on a mortgage loan can significantly reduce your monthly payments while providing savings over the life of the loan. The savings, of course, are dependent on the amount borrowed and the term of the loan.
You can request a free copy of your credit report from each of the three major credit reporting agencies – Equifax, Experian, and TransUnion – one time each year. Access your reports at AnnualCreditReport.com. Once you receive your reports, review them carefully. You will want to check for any incorrect information or other errors. If you find any errors, be sure to report them to the individual credit reporting agencies.
Understanding your credit score
Your credit score is a representation of your overall credit history. Five important factors that comprise your credit score are:
Payment history (35%), outstanding balances (30%), length of credit history (15%), credit mix (10%), and new credit (10%).
Credit scores usually range from 300-850. According to Experian, a credit score of 700 and above is considered good with a score of 800 and above considered excellent. Higher scores show lenders that you are a good credit risk and are responsible for paying off your debt. Credit scores under 620 are considered low. If your credit score is on the low side, taking a proactive approach to improving it can mean the difference between being denied for a mortgage loan or not.
Tips for improving your credit score
- Pay all bills on time. Timely payments are crucial for a positive credit history. Paying all of your bills on time every month helps to improve your score, while late payments can significantly lower your credit score. Setting up automatic bill pay can help you ensure your bills get paid on time.
- Lower your total debt or credit utilization. Your outstanding credit or credit utilization is another factor in determining your score. The higher your outstanding balances the higher your credit utilization, which can have a negative impact on your score. You can improve this by paying down your loan and credit card balances. It will also significantly help to keep the cards open after you pay them off, as it will add available credit to lower your debt to credit ratio.
- Work to build a strong credit history. The age of your accounts matters when borrowing money. Lenders like to see a long history, as well as various types of credit, such as a mix of credit cards and various loans. Be mindful of this as you start to build credit. It’s important to keep in mind that every time you apply for a credit card or any other credit account that’s considered new credit, the lender may run a hard check. This can lower your credit score slightly in the short term. For this reason, it’s not smart to apply for several credit cards at the same time. Length of history is another reason we suggest keeping credit cards open rather than closing them after they’re paid off. You don’t need to use them, but having them open for a long period of time helps to improve your length of history. As you establish your credit, charging smaller amounts on different cards and paying them off on time every month can also enhance your payment history. A word of caution: If you have a problem controlling your spending, then it may be better in the long run to close the card you pay off.
- Finally, make sure your credit reports are accurate. If you’ve found discrepancies, report them immediately. Errors are more common than you might think.
If you find yourself with a lower credit score, it might be wise to pause your house-hunting journey momentarily to concentrate on improving it. However, there’s no need to worry—adopting a targeted strategy towards boosting your score can lead to significant improvements. By diligently paying off existing debts and ensuring timely monthly payments, you can positively influence your credit score, paving the way for a smoother home-buying experience in the near future.
Step 2 – Budget and save for a down payment
While you’re working on your credit score, you can simultaneously begin to work on a budget of what you can realistically afford for a mortgage payment. Your credit union mortgage lender can be a big help in determining what you can afford. Remember, the more you have saved for a down payment, the less you will need to borrow. Lenders typically like to see at least a 20% down payment made on a home. The requirement may be lower, depending on your lender. It also may be lower if you qualify for an FHA loan, which is a mortgage that is insured by the Federal Housing Administration. Some lenders, such as Choice One Community Credit Union, have FHA mortgages available for members. Down payment required is a question you can ask as you are comparing mortgage loans with Choice One and other lenders.
Unless you recently hit the lottery or inherited a windfall, you need to come up with your down payment the good old-fashioned way – by saving! If you haven’t started aggressively saving for your down payment, there’s no time like today to begin. Examine your monthly budget and look for ways to save and for expenses you can eliminate. This might include dinners out, those new shoes you’ve been eyeing, a weekend getaway, or that new ATV. After all, a home will be one of the biggest investments you make in your lifetime. It’s worth some sacrifice now for a lifetime of enjoyment. That vacation you give up can mean achieving your down payment goals faster, and that’s a great inspiration. Once you’ve found extra savings each month, open a dedicated savings account, and have money direct deposited each pay period right from your pay into that account. Perhaps put money into a CD for a higher interest rate. Just be sure the term of the CD fits your timeline. If you think you want to purchase a home in a year, don’t invest in a 3-year CD, but rather choose a shorter term. Most importantly, don’t touch your down payment savings for anything other than your down payment. Just focus and watch your balance grow!
When you apply for your mortgage, you are going to have to show the source of the funds for your down payment. Keep a record of your savings, so you can show where your funds will be coming from.
Step 3 – Research mortgage lenders, types of mortgages and mortgage rates
This should be done before you even begin the process of looking for a new home. Take your time and shop around. Speak to your credit union representative and other lenders to compare mortgage loan options. Be sure to compare apples to apples. The lowest rate is not always the best deal. In addition to comparing rates, you’ll want to consider fees, term options, closing costs, and other factors. Make sure that you’re comparing fixed-rate mortgages to fixed-rate mortgage options and adjustable-rate mortgages to adjustable-rate mortgage options. It’s also smart to get pre-qualified for a mortgage. Pre-qualification is simply an estimate of the total amount a lender is willing to let you borrow. This will help increase your bargaining power. Read more about that in Step 4.
Careful considerations when comparing mortgage loans
- Interest rate – A lower rate may mean a lower monthly payment. Examine the pros and cons of fixed rates vs. adjustable rates.
- Monthly payment – Does the payment fit your budget?
- What are the total points & other fees? This can vary considerably from lender to lender. Mortgage closing costs could include a variety of fees. Here are some examples: appraisal fees, home inspection fee, credit report fee, document preparation fee, loan origination fee, and title fees. As you can imagine, these fees can add up quickly. Historically, credit unions have had less and lower fees than traditional banks and other lenders. This is an important consideration when selecting a mortgage loan.
- Down payment – How much of a down payment does the lender require?
As you research and compare mortgage loans, it’s important to select the best mortgage for your life and your long-term plans. For instance, is this home short term? Do you plan on purchasing a larger home as your family expands? Is there a possibility you will be relocating? What’s most important to you right now – a low monthly payment? All of these questions will help you to determine the best loan and terms for your needs.
Compare Conventional Vs. Adjustable-Rate Mortgage
Understanding the distinctions between conventional mortgages and adjustable mortgage loans (ARMs) is critical in making an informed decision tailored to your unique needs.
Conventional Mortgages are stable and predictable
Conventional mortgages are synonymous with stability, offering fixed interest rates throughout the loan term. This means that your monthly payments remain consistent, providing predictability and ease in financial planning. Ideal for those seeking long-term stability and assurance, conventional mortgages are a popular choice for homebuyers who prioritize a fixed-rate environment.
Adjustable Mortgage Loans (ARMs) offer flexibility
On the other hand, adjustable mortgage loans (ARMs) introduce an element of flexibility to your mortgage journey. Unlike conventional mortgages, ARMs feature interest rates that may fluctuate periodically based on market conditions. Typically, ARMs begin with a fixed-rate period, during which the interest rate remains constant, providing an initial sense of stability. After this period, the rate adjusts at predetermined intervals, potentially impacting your monthly payments.
The term’s impact on rate
The term of a mortgage significantly influences the interest rate structure. In both conventional mortgages and ARMs, the term is an important factor in determining how long the interest rate remains fixed or stable. Conventional mortgages typically come in 15- or 30-year terms, with the interest rate locked in for the entire duration. Choice One offers various terms up to 30 years. On the other hand, ARMs often start with an initial fixed-rate period before transitioning to an adjustable rate.
Understanding how the term affects the rate is crucial. In conventional mortgages, the longer the term, the higher the interest rate may be due to the extended period of rate stability provided. It may also mean a lower, more affordable payment. In ARMs, the initial fixed-rate period dictates the stability, and thereafter, the rate adjusts based on market conditions. Homebuyers must carefully consider their financial goals, risk tolerance, and anticipated time in the home when selecting between the steady path of a conventional mortgage or the dynamic landscape of an adjustable mortgage loan. Review mortgage rates and terms at Choice One Community Credit Union.
Step 4 – Apply for mortgage pre-approval
Now it’s time for the next step. In addition to helping you to determine the range of a home you can afford, the mortgage pre-approval process can also help you to identify any obstacles for approval. It is always best to get pre-approved before you start shopping for a home. Having a pre-approval letter is a great negotiating tool when it comes time to purchase your house. The buyer will know you are serious.
When applying for mortgage pre-approval, your lender will require various documents to verify income. This includes proof of employment, recent tax returns, as well as copies of W-2 forms, pay stubs, and any other income. They will also need a listing and verification of all of your assets as well as your debts. This includes credit union, bank and investment statements and credit information. As previously mentioned, they will also want to see the documentation of where your down payment will be coming from. They will require other information as well, such as information on your place of residence.
Experts typically recommend your monthly mortgage payment be no more than 28% of your monthly gross income. This percentage may change based on other debt you owe. Your lender will take all financial factors into consideration before pre-approving you for a mortgage amount.
Keep in mind that a pre-approval is not a guarantee that you will get the loan, and is conditional. Should there be a major change in your financial situation after pre-approval, you may no longer be eligible for the loan. Pre-approvals are not indefinite. They are only valid for a limited period of time, so be sure when you are seeking pre-approval that you are ready to begin your search. Speak to a Choice One Loan Officer about mortgage pre-approval today.
Step 5 – Hire an experienced realtor
Finding and purchasing your dream home takes a lot of time and work. A qualified realtor can make it much easier for you. They can be your closest ally in accomplishing your home buying goals. An experienced realtor has access to endless research, including facts and figures related to various school districts, neighborhoods, taxes, arts & culture, and much more. You’ll want a professional realtor who is knowledgeable about the communities in which you are searching, is highly skilled, and is extremely motivated. It also needs to be someone you can work closely with, but it doesn’t necessarily have to be a friend. It’s not always a good idea to mix friendship and business. You will be spending a lot of time with your realtor, and you want it to be a positive experience. Your realtor should be able to work within your set budget and take into consideration your needs, likes, and dislikes. This will save you the time and heartbreak of looking at homes that don’t fit your needs or that you can’t afford.
Ten tips for finding the right realtor
- Ask friends, family, and co-workers for recommendations.
- Look for someone with the proper licenses, credentials, and experience.
- Look for a realtor who is part of a larger team and has access to the tools you need for a successful home search. You’ll want them to have the inside scoop when new homes are coming to the market. Ask to meet the other people on their real estate team.
- Look for someone with local expertise. You want them to be extremely knowledgeable in the areas where you are looking to buy.
- Look for a good negotiator.
- Ask for references and speak to clients who have worked directly with the realtor.
- Look at the realtor’s current listings.
- Do an online search for reviews, as well as any complaints or disciplinary actions.
- Interview the realtor to test his/her knowledge of the real estate market in general, the home buying process, and the geographic area. Ask about their availability. You want to know your realtor is responsive and can dedicate the time needed to help you find the right home. Be sure to interview multiple agents, so you have something to compare.
- Question the potential realtor about resources they have at their disposal, such as access to experienced home inspectors. This will help to take one more thing off your list when purchasing a new home. You will read more about home inspections below.
Step 6 – Make a list of the home features you want & start your search
In addition to the budget, there are other things your realtor will need to know to effectively help you in your home search. Other considerations include the number of bedrooms and bathrooms you need. Do you need a large yard for children and pets? Are you looking for a home with a pool or extensive landscaping? Is there a particular school district you’d like to be in? Close proximity to shops and restaurants? Perhaps you’re looking to move closer to your place of employment. Do you prefer a home in move-in condition or are you open to a fixer-upper? What are your garage needs? We all have things we are looking for in a new home, so make a list and prioritize your items. You should specify your must-haves for a new home, as well as other features on your wish list that aren’t as important to you. Communicate all of this to your realtor. Having a real estate agent on your side who completely understands what you want in a new home is vital.
Now comes the fun part, actually starting your home search! Take your time and be thorough when looking through homes. Walk and drive through the neighborhoods as well. Are the other homes on the block well maintained? What’s the neighborhood like? Once you narrow your search, go back for a second or even a third visit. Take the time you need to be sure this is the right home for you and your family. Ask for the cost of taxes and homeowners insurance on the home, as well as utility costs and any association dues. This will all come into play when determining if a home fits your budget.
Step 7 – Make an offer
Time to make an offer and start the negotiation process. Again, your realtor will be your secret weapon in negotiating the best price for your new home. You will want to do a little research before you make an offer. Ask your realtor to perform a comparative market analysis. This will provide you with trends in the area and how other homes have been selling. You will also want facts, such as how long the property has been on the market and if the price has come down at all during that time.
It’s helpful to know why the seller is selling. Are they moving out of the area? Have they grown out of the home and are upgrading? Are they unable to keep up with the maintenance of the home? If they need to sell quickly, because they are moving or have already purchased another home, they may be more open to negotiating. On the other hand, if the seller is looking for another home, but not yet ready to move, your flexibility on possession date may make the seller more apt to choose your offer.
Once the negotiations are complete and your offer is accepted, you will sign a contract and provide a small amount of cash in the form of a deposit. Your offer will be conditional upon a home inspection and financing. You will have a specified amount of time to complete your due diligence on the property, which includes the home inspection.
Step 8 – Home Inspections
This is an important step in purchasing a new home. To make sure there are no problems, you need to have a home inspection or inspections completed. This is where the expertise and connections of your realtor can really be of help. They can guide you to a list of recommended and experienced inspectors who can ensure your home is in good shape. In addition to getting recommendations from your realtor, you can seek recommendations from friends as well. Your home inspectors should be professional, licensed, insured, and highly experienced. You want someone who will guarantee the inspection and is licensed to practice in your state. You should also check to see if they are affiliated with any professional inspection organizations, such as the National Association of Home Inspectors. Do a search to be sure there are no complaints lodged against them. You want someone who will not only be thorough in the inspection, but will look out for your best interests as well. Finally, you want your inspection to be independent of any inspection report the seller may have.
Home inspectors basically look for any signs of damage or defect. They will verify there are no structural problems, code violations, or any other concerns. The inspector should thoroughly evaluate the structure of the home and examine the following:
- Foundation
- Structure
- Chimney
- Electrical
- Heating and AC
- Roof
- Sewer or Septic System
- Water System
- Basement
- Attic
- Insulation
- Walls, ceiling, flooring, window and doors
- Exterior
- Grounds
They will look for lead-based paint in older homes, wood damage, which can be a sign of termite problems, asbestos, mold, and any other potential problems or structural defects. A pest inspection or termite inspection is usually performed separately. You may even desire to hire specific experts for inspecting certain areas of the home, depending on what items your home inspector can handle. A basic home inspection takes approximately 3 to 4 hours and the cost varies depending on the location and size of the home, as well as the experience of the inspector. You can ask to tag along with the inspector while they are checking the home to see first-hand what they are looking for.
If any problems are found or repairs needed, you may want to reconsider your purchase, ask for certain items to be repaired, or renegotiate the price. This will be dependent on the extent of any problems or concerns identified in the inspection.
Step 9 – Contact your mortgage lender
If you followed our previous steps, you will have already selected your mortgage lender and been pre-approved for a mortgage loan for up to a certain amount. Now it’s time to inform them you’ve found a home. If you haven’t already done so, you may want to work out the details of the loan, such as fixed or adjustable-rate and also the term of the loan. Most mortgage lenders, including Choice One Community Credit Union, offer terms up to 30 years.
Mortgage loan considerations include:
- Fixed-Rate Mortgage – Interest rate never changes
- Adjustable-Rate Mortgage (ARM) – Lower rate that may increase or decrease over time.
- FHA Loans – This type of loan is regulated by the Federal Housing Administration.
- Terms
- Fees and closing costs, which might include:
- Appraisal Fee
- Home Inspection Fee
- Loan Origination Fee
- Loan Application Fee
- Credit Report Fee
- Document Preparation Fee
- Title Insurance Fee
- Private Mortgage Insurance
- Attorney Fees
Your lender will arrange for an appraiser to visit the home and provide an independent estimate of the value of the home. The appraisal assures that you are paying a fair price for the home. The appraisal is a report that states the value of the home based on the size, condition, and features of the home, as well as the sales price of similar homes sold recently in the area.
Your mortgage lender will also arrange for a title company to handle all of the paperwork and do the necessary searches. Pre-approved borrowers have already provided some of their information to the lender, so it will often speed up the overall mortgage process.
Once all information is compiled, the lender will then send the loan package to their underwriters for approval. Finally, if all goes well, your lender will approve the loan, and you can plan your closing.
Step 10 – Closing the Sale
Closing is when you will actually take ownership of the home. Your realtor will walk you through everything you need to prepare. Prior to your closing date, you will receive a closing disclosure that summarizes the costs and fees associated with the transaction and the amount of money you will need to bring to the closing.
During the closing, all parties meet and sign all of the paperwork involved in the sale. You will have to provide proof of homeowners insurance at this time. Funds are then transferred from you and your lender to the seller, and the deed is transferred to you. All closing costs are also paid at this time, which can include all fees, such as title search and insurance, appraisal and inspection, points if applicable, and any other closing costs.
Congratulations, you will walk away from the closing with the keys to your new home!
We hope you found this home buyer’s guide helpful. For more information on the home buying process, visit a Choice One Community Credit Union branch location or contact a Choice One Loan Officer by phone at (800) 610-2788. Tap to view mortgage loan rates and terms or apply for mortgage pre-approval or a mortgage loan.
As the New Year unfolds, many individuals reflect on their financial goals, and for some, this involves taking control of their debt. The path to financial freedom requires careful planning and informed decisions, and debt consolidation emerges as a popular strategy. Among the various methods available, utilizing a 0% balance transfer credit card stands out among debt consolidation strategies. This blog will explore the benefits of this approach, what to look for when selecting a balance transfer offer, and alternative options for consolidating high-rate debt.
The Power of 0% Balance Transfer Credit Cards: A Beacon of Hope
A 0% balance transfer credit card can be a powerful tool for those seeking relief from high-interest debt. The primary allure is its ability to provide a temporary interest-free period, allowing individuals to focus on paying down the principal balance. This breathing space can be a game-changer, especially when consolidating multiple debts with varying interest rates.
One of the most significant advantages of using a 0% balance transfer credit card is the potential to save on interest payments. With the absence of interest during the introductory period, more of your payments go towards reducing the actual debt rather than merely servicing the interest. This can lead to faster debt reduction and significant savings over time. A great example is Choice One Community Credit Union’s 0% APR* VISA Balance Transfer Credit Card.
Choosing the Right 0% Balance Transfer Credit Card: What to Look For
Not all balance transfer offers are created equal, so it’s crucial to carefully evaluate your options before deciding. One key factor to consider is the duration of the introductory period. Extended periods provide more time to tackle the debt without incurring interest charges. Look for cards that give you ample time to make meaningful progress.
In addition to the duration, pay attention to the balance transfer fees associated with the card. While many balance transfer offers include these fees, some do not. A card such as Choice One’s mentioned above provides the benefit of no balance transfer fee and no annual fee. Calculating the overall cost, including transfer fees, can help you determine the card’s true value for your specific situation.
Moreover, scrutinize the card’s regular APR after the introductory period ends. While the 0% APR is enticing, it’s crucial to know the interest rate that will apply once the promotional period concludes. Opt for a card with a competitive ongoing APR to ensure continued financial stability after the interest-free period ends. According to the Forbes Advisor’s weekly credit card rates report, the average credit card interest rate the week of January 22, 2024, was 27.79%. Choice One’s Balance Transfer Credit Card, on the other hand, converts to a rate as low as 8.90% APR* after the introductory period, which is much lower than the national average.
Debt Consolidation Strategies Beyond Balance Transfer Credit Cards
While 0% balance transfer credit cards offer an effective strategy for many, there might be better fits for some. Alternative debt consolidation options should also be considered based on individual circumstances.
- Home Equity Loans: Home equity loans are a viable option for homeowners looking to consolidate high-rate debt. Leveraging the equity in your home can result in lower interest rates than credit cards. However, this approach risks putting your home on the line, so careful consideration is essential. Choice One offers members some of the best home equity loan rates in NEPA.
- Personal Loans: Personal loans are another alternative, offering fixed interest rates and a structured repayment plan. This option can be appealing to those seeking predictability in their monthly payments. However, interest rates on personal loans may be higher than those on home equity loans and some balance transfer credit cards. Tap to learn more about Choice One personal loans and to view rates. Personal loan rates at Choice One for qualified borrowers are much lower than the national average credit card rate.
Consider Fees
Fees, interest rates, and repayment terms should be carefully evaluated when considering alternatives to 0% balance transfer credit cards. Each option has unique advantages and risks, making it crucial to align your choice with your financial goals and capacity for repayment.
Charting a Course for Financial Freedom
Strategizing to manage and consolidate debt requires thoughtful consideration and planning. A 0% balance transfer credit card can be a beacon of hope, offering a temporary respite from high-interest rates and facilitating faster debt reduction. However, the key lies in selecting the right card based on your needs and financial situation.
As the New Year unfolds, take the opportunity to reassess your financial goals, explore debt consolidation strategies, and choose a path that aligns with your vision for a debt-free future. Whether opting for a balance transfer credit card or considering an alternative strategy, the key is to make informed decisions that empower you on your journey to financial success.
Disclaimers
*0% VISA Balance Transfer Rate is valid for 6 billing cycles from date of transfer. Rate returns to current rate at that time. Choice One’s current Platinum Visa Credit Card Rate is 8.90% APR and Classic Visa Card is 13.50% APR with No Balance Transfer or Annual Fee. Balance Transfer offer is good on any new or existing Choice One Platinum or Classic Credit Card. 0% balance transfer rate is for balances transferred from another institution only. Transfers may not exceed the credit line a member is approved for.
In the ever-expanding world of online transactions and doorstep deliveries, the convenience of having goods delivered to your home has given rise to a disturbing trend. There has been an alarming increase in delivery driver scams. These scams involve crafty frauds posing as legitimate drivers, exploiting text messages to deceive unsuspecting victims into divulging personal information. In more dire circumstances, a victim may even reveal credit card numbers.
Smishing, a deceptive technique where scammers use text messages to steal sensitive information, is the method of choice for most delivery driver scams. This article will dissect the underhanded tactics of delivery driver scammers and smishing threats. We will provide a detailed example of this prevalent scam, offer tips for recognizing the signs, and provide you with strategies to guard against falling victim to these dual menaces.
Understanding the Dual Threat: Delivery Driver Scams and Smishing
Delivery driver scams typically commence with a text message sent to the victim’s phone, conveying urgency and claiming difficulty in locating the recipient’s home for a scheduled delivery. As mentioned, smishing involves using text messages to trick individuals into providing confidential information, often under the guise of urgent alerts, promotions, or, in this context, delivery-related issues.
Consider the following combination of the two scams:
You receive a text from an unknown number, seemingly from a reputable delivery service, such as FedEx or UPS, stating, “Hello! Your package is coming, but our driver has trouble finding your address. Please call us at [provided number] to help guide them to your home.” Intrigued or concerned about the timely arrival of your package, you decide to make the call. The person on the other end of the line identifies as a delivery service representative and asks for your address to ensure a successful delivery. As the conversation progresses, they might claim an issue with your credit card information, insisting on immediate resolution to proceed with the delivery.
Simultaneously, you receive another text message purportedly from the same delivery service, stating, “Due to a technical glitch, we require additional verification. Please reply with your full name, address, and credit card details to resolve the issue promptly.” In a state of concern and urgency, you may unwittingly provide your address and credit card information, falling victim to both the delivery driver scam and the smishing threat, opening the door for potential identity theft and financial fraud.
Recognizing Delivery Driver Scam Tactics
- Unsolicited Texts: Both delivery driver scams and smishing attempts often begin with unsolicited text messages. Legitimate communication from delivery services and businesses typically comes through official channels.
- Non-Specific Language: Scammers across both scams may use generic language to appeal to a broad audience. Legitimate messages are usually specific to your order or personal information needs.
- Beware of Surprise Packages: Exercise caution when receiving messages about unexpected gifts or deliveries, especially if you are not anticipating a package. This is a common tactic used in both scams.
Guarding Against Delivery Driver Scams and Smishing
- Check the Tracking Information: Cross-verify information received in text messages with official tracking details on the delivery service’s website. Aligning information ensures authenticity.
- Verify Caller ID: Before calling any provided number, cross-check the caller ID with official contact details from the delivery service. Scammers may use generic or unusual phone numbers. Similarly, be cautious of replying to unknown numbers in smishing attempts.
- Personal Information Caution: Legitimate delivery services and businesses do not ask you to provide sensitive information or credit card numbers through text messages. Be cautious about sharing personal information.
- Verify Via Official Contact Information: When in doubt, contact the delivery service or business using their website’s official contact information or previous correspondence. Avoid using contact details provided in unsolicited messages.
- Stay Well-Informed and Warn Others: Regularly update yourself on the latest scams and smishing trends by reading our Choice Words Blog. and our Choice One Scam Alerts Page. Inform friends and family about potential risks. Awareness is a powerful tool in stopping scammers.
Protect Yourself from Dual Threats
The latest data shows that delivery driver scams and smishing threats have seen a significant uptick in recent months. The evolution and convergence of these scams indicate the need for heightened awareness and preemptive measures.
As the online transaction landscape expands, so does the risk of falling victim to dual threats like delivery driver scams and smishing attempts. By understanding the tactics employed by scammers, recognizing the signs of potential scams, and adopting preventive measures, you can safeguard your personal information and protect yourself from the deceptive web woven by these fraudulent driver scams. Stay vigilant, stay informed, and guard your gateway against the rising tide of dual threat delivery driver scams.
Stay current on pending scam threats by reading our blog articles:
“Outsmarting Social Media Scams During the Holidays.”
“The Naughty List: Most Common Holiday Scams Unwrapped.”
Social media is a big part of everyday life, connecting us with friends, family, and even our favorite brands. However, the digital landscape becomes a hotbed for social media scams as the holiday season approaches. The enticing allure of holiday promotions and giveaways can mask malicious schemes aimed at exploiting unsuspecting users. This blog explores the tactics scammers employ on social media platforms during the holidays and provides strategies to outsmart these scams.
The Temptation of Festive Fraud
As the yuletide season unfolds, social media platforms light up with holiday-themed posts, giveaways, and promotions. The promise of freebies, exclusive discounts, and seasonal contests can be too tempting to resist. Moreover, the Federal Trade Commission (FTC) refers to social media as a “golden goose for scammers.” Cybercriminals capitalize on social platforms and the joyous spirit of social media users to deceive and harvest personal information for corrupt purposes.
Recognizing Holiday Social Media Scams
- Too Good to Be True Giveaways: Scammers often design enticing giveaways that seem too generous to be legitimate. This is especially true during the holiday season. Prizes ranging from high-end gadgets to dream vacations can lure users into clicking on fraudulent links or providing sensitive information.
- Fake Charity Campaigns: The “season of giving” inspires generosity. Scammers are quick to exploit this by creating fake charity campaigns. They impersonate reputable organizations, tugging at heartstrings to manipulate users into making donations that never reach the intended cause.
- Phishing Links in Festive Disguise: Cybercriminals disguise phishing links as holiday-themed content, such as e-cards, virtual gifts, or festive quizzes or surveys. Clicking on these links can compromise sensitive or personal information. Furthermore, it might be used to steal your identity or lead to the installation of malware on your device.
- Impersonation of Brands and Influencers: Scammers often create fake accounts impersonating or spoofing well-known brands or influencers, promising exclusive deals, or collaborations. Users may be enticed to make purchases or share personal information with these fraudulent accounts.
- Contest Scams: Fake contests and sweepstakes flood social media during the holidays. First, participants are asked to share personal details, leaving them vulnerable to identity theft. Second, some scammers may even con participants into believing they’ve won a prize. Finally, they may ask for money to claim a prize, but the promised reward is never delivered. Be wary of any demand for advance payment to claim a prize.
8 Steps for Outsmarting Social Media Scams
- Verify Accounts and Promotions: Before engaging with a social media post or promotion, verify the account’s or brand’s authenticity. Look for the blue checkmark indicating a verified account and cross-reference information with official websites.
- Click with Caution: Confirm links by hovering over them to preview the destination URL before clicking. Genuine links will lead to official websites, while fraudulent ones may direct you to phishing sites. Exercise caution if the URL appears suspicious or unfamiliar.
- Check for Spelling and Grammar Mistakes: We can’t mention this often enough. Scam posts often contain spelling and grammar errors. Legitimate brands and influencers maintain professional communication, so discrepancies in language or grammar can be a glaring red flag.
- Review Privacy Settings: Regularly review and update your privacy settings on social media platforms. Limit the information visible to the public and restrict access to personal details to minimize the risk of targeted scams.
- Use Two-Factor Authentication (2FA): Enable 2FA on your social media accounts for an additional layer of security. This extra step can thwart unauthorized access, even if criminals manage to obtain your login information.
- Read the Choice Words Blog: Stay informed about common social media scams on our blog to stay updated and educate friends and family about potential threats. Awareness is a powerful defense against falling victim to deceptive schemes.
- Report Suspicious Activity: If you encounter a suspicious account or post, report it to the social media platform. Reporting helps platforms promptly remove fraudulent content and prevent it from spreading. Finally, report social media scams online to the FTC.
- Think Before You Click: Exercise caution before clicking links, especially those promising extraordinary prizes or exclusive deals. If something feels too good to be true, it likely is. Trust your instincts and avoid engaging with suspicious content.
Maintaining a Safe and Enjoyable Holiday Season
As the holiday season unfolds, social media users must remain cautious to protect themselves from scams that can dampen the joy-filled season. According to the FTC, between January 2021 and June 2023, “more money was reported lost to fraud originating on social media than by any other method of contact.” By recognizing the tactics employed by scammers, verifying the authenticity of accounts and promotions, and adopting security measures, users can outsmart social media scams and ensure a safer online experience. Clicking with caution is not just a recommendation; it’s a strategy to safeguard your digital presence and celebrate the holidays without falling victim to cyber threats.
Choice Words Blog Posts
Get some great holiday entertaining tips to stay within budget in our blog post, “Economical Entertaining: Hosting Holiday Gatherings on a Dime.”
Learn more about holiday scams by reading our blog post, “The Naughty List: Most Common Holiday Scams Unwrapped.”
The holiday season is synonymous with joy, togetherness, and celebration. However, hosting a holiday gathering can be daunting for many, especially when considering the potential strain on a budget. The good news is that hosting a memorable holiday gathering doesn’t have to empty your credit union account. With a bit of creativity and strategic planning, you can create a festive and enjoyable atmosphere for your guests without sacrificing your financial well-being. Here are some tips for economical entertaining.
1 Plan Ahead and Set a Budget
One of the keys to successful and economical entertaining is planning ahead. Start by creating a detailed plan for your gathering, including the number of guests, menu, and decorations. Once you have a clear idea of what you want, set a realistic budget and stick to it. This will help you make informed decisions and avoid unnecessary expenses.
2 Potluck Style Celebrations
Share the joy of the season by making your holiday gathering a potluck event. Ask each guest to bring a covered dish to share, whether a side, appetizer, or dessert. This not only eases the burden on your wallet but also adds a diverse and delicious element to the feast. Coordinate with your guests to ensure a well-rounded menu and avoid duplications.
3 DIY Holiday Decorations
Instead of splurging on expensive decorations, embrace the do-it-yourself approach. Get creative with handmade decorations using materials you already have at home. Pinecones, twine, and ribbon can be transformed into beautifully rustic centerpieces. Collect branches and adorn them with homemade or unused ornaments. Not only will this save you money, but it will also give your gathering a personal and charming touch.
4 Festive Dollar Store Finds
Never underestimate the power of dollar stores when it comes to holiday hosting. You can find a variety of holiday glassware and serving platters, disposable tableware, festive decorations and candles, twinkle lights, wrapping paper, and small gifts at incredibly low prices. Shop strategically and stock up on essentials. Your guests will never notice the budget-friendly price tags.
5 BYOB – Bring Your Own Bottle of Holiday Cheer
Beverages can quickly add up and strain your budget. Make your gathering a “Bring Your Own Bottle” event to keep costs down. Encourage guests to bring their favorite beverages, wine, sparkling water, or a special holiday cocktail. This way, everyone contributes to the refreshments, and you can focus your budget on other elements of the celebration.
6 Opt for Budget-Friendly Recipes
Craft a delicious and economical menu by opting for budget-friendly recipes. Consider hearty one-pot dishes, casseroles, and appetizers that use affordable ingredients. Look for sales and discounts at your local grocery, outlet, and discount stores. You can find deals on gourmet foods and chocolates at stores such as T.J. Maxx or Kohl’s. Plan your menu around seasonal produce, such as oranges, beets, and winter squash, which are more affordable and fresher during the holidays.
7 Host a Daytime Gathering
Hosting a daytime gathering rather than an evening affair can lessen the strain on your budget. Daytime events often require less elaborate decorations and lighting, allowing you to cut down on costs. Additionally, guests are less likely to expect a full-course meal or bar, making focusing on budget-friendly snacks and appetizers easier.
8 Embrace Your Local Thrift & Vintage Shops
If you require additional serving platters, holiday-themed decor, or even extra seating, consider exploring area thrift stores. You might be surprised with the treasures you’ll find at a fraction of the cost of a department store. With a little creativity, you can repurpose thrift store finds to suit your holiday theme and the ambiance of your gathering. You may even luck into some beautiful vintage holiday finds.
9 Tap into Technology for Economical Invitations
Save on paper and postage by utilizing digital invitations. Many free online platforms, such as evite or poply, allow you to create beautiful and customizable invitations. Not only is this environmentally friendly, but it also frees up more of your budget for other aspects of the gathering.
10 Focus on the Experience
Ultimately, the most memorable holiday gatherings are not defined by extravagant decorations or gourmet meals but by the experience shared among friends and family. Instead of fixating on material aspects, focus on creating a warm and inviting atmosphere. Play festive music, organize holiday games, and encourage meaningful conversations to make your gathering truly special.
Economical Entertaining Can Be Enjoyable & Stress-Free
Hosting a holiday gathering on a dime is possible and can be a rewarding and enjoyable experience. By planning ahead, embracing a potluck approach, getting creative with decorations, and making strategic choices, you can create lasting memories without going into debt. This holiday season, let the spirit of togetherness take center stage, proving that the most cherished moments often come from the heart, not the wallet.
Need some extra cash for your holiday entertaining needs? Choice One’s Holiday Bucks Personal Loans are back. Apply today.
Keep your holidays happy and safe by reading the Choice Words Blog, “The Naughty List: Most Common Holiday Scams Unwrapped.”
As the holiday season approaches, scammers prepare to exploit the festive cheer, hoping to take advantage of increased online activity and generous spirits. There are various scams to be wary of, from traditional methods to more technologically savvy techniques. Being informed about these tricks and understanding how to protect yourself is vital in safeguarding yourself from common holiday scams.
Nine Common Holiday Scams
- Phishing and Spoofing Scams: Scammers utilize emails or texts impersonating reputable companies or even friends and family, aiming to deceive individuals into revealing personal information, such as passwords and account numbers, or making fraudulent purchases.
- Fake Charities and Donation Scams: Opportunistic scammers set up bogus charities. They mimic legitimate organizations to steal donations intended for those in need. Ensure donations go to credible, registered charities by verifying their legitimacy through trusted sources.
- Package Delivery Scams: During the holiday rush, scammers may send phony delivery notifications or pose as delivery companies, attempting to obtain personal information or payment for undelivered packages. They often trick you with a forceful sense of urgency.
- Travel Scams: Fraudulent travel deals or offers for airline tickets or vacation rentals that seem unbelievably cheap might lead to financial losses or identity theft. Fraudsters often use a time of inflated holiday travel to lure you into this scam.
- Gift Card Scams: Scammers tamper with gift cards on store display, noting down activation codes. They later use the funds, rendering purchased cards worthless.
- Hacked Account Scams: A fake text or email claims your account has been hacked and demands payment to prevent the release of compromising information. Scammers may pose as tech support to extort money from unwary victims.
- Shady Holiday Apps: Fraudulent or counterfeit apps often surface during the holiday season, posing as legitimate shopping or entertainment platforms. These apps can steal personal information or financial details.
- Fake Online Stores: Pop-up ads and other ads offering unbelievable holiday deals are designed to lure shoppers to fake online stores. Once a phony site hooks you, any personal and financial information you enter goes straight to a scammer.
- Social Media Scams: Social media scams incorporate fake ads on various social channels that lure victims to fake online shops mentioned above. This often includes offers that seem too good to be true on hard-to-find holiday goods.
Protecting Yourself from Holiday Scams
To defend against these deceptive schemes, consider the following precautions:
- Verify Sources Asking for Donations: Be cautious of unsolicited messages and verify the sender’s legitimacy before responding. Check the authenticity of charities or donation requests by researching through reliable resources.
- Track Deliveries Securely: Use official package tracking links from verified sources rather than clicking on links from unsolicited texts or email. Cross-check delivery details on the retailer’s official website.
- Stay Vigilant with Travel Deals: Research the travel agency or rental property thoroughly before making any payments. Beware of deals that appear too good to be true or heavily discounted flights.
- Inspect Gift Cards: Examine gift cards for signs of tampering before purchasing. Obtain cards directly from store personnel and avoid those easily accessed by the public.
- Be on the Watch for Hacking Scams: If you receive a suspicious message claiming your account has been hacked, contact the alleged service provider directly through their verified customer service channels to confirm the legitimacy of the claim. Avoid making any payments or divulging sensitive information without verification.
- Practice Caution Downloading Apps: Download apps only from reputable app stores and check reviews and permissions before installing any holiday-themed apps. Be cautious about the data these apps request access to.
- Be Cautious on Social Media: Don’t click on ads for offers that seem too good to be true. This is a sure red flag of a scam. If you want to show, go directly to a site from a trusted link rather than a social media ad.
- Update Your Software: This can help to protect you from hackers and scammers.
Steps to Take if You’re a Victim of a Scam
If you suspect falling victim to any of these scams, take immediate action:
- Report to Authorities: Inform local law enforcement or relevant consumer protection agencies to report the incident and seek guidance. Read these five tips for reporting a scam on USA.GOV.
- Contact Financial Institutions: Immediately notify your credit union or credit card company to report unauthorized transactions and take necessary steps to secure your accounts.
- Monitor and Safeguard Your Information: Keep a close eye on your credit reports and financial statements, and change passwords for compromised accounts. Enable two-factor authentication where possible.
- Seek Support and Spread Awareness: Consider sharing your experience with online forums and other platforms to help others avoid similar scams. It’s essential to have emotional support and share your story to prevent others from becoming victims.
Be on the Watch for Common Holiday Scams
In the age of technological advancements and online interactions, being vigilant and well-informed is crucial in preventing holiday scams. Stay aware, be cautious, and trust your instincts. Being proactive and informed can protect you and your loved ones during this festive season, ensuring a joyful and secure holiday experience.
Learn more about brushing scams in our blog “Beware of ‘Brushing’: The Newest Mail Scam.”
AI-driven voice scams have become a silent yet potent threat to our households. These scams employ artificial intelligence to impersonate trusted individuals or organizations. They aim to exploit our emotions and trust for fraudulent purposes. This article sheds light on what AI voice scamming entails, the various forms it can take, how to spot a voice scam, and proactive measures to safeguard your household. Moreover, we will highlight why technological advancements are making these scams more prevalent and believable.
Unmasking the Silent Threat
AI voice scamming, or voice phishing or vishing, is a deceptive practice that leverages AI-driven voice cloning technology to impersonate someone familiar or trustworthy. These scammers seek to manipulate individuals into divulging personal information, transferring money, or taking actions that serve the scammers’ fraudulent agendas.
The rise of AI voice scamming is driven by the increasing accessibility of voice cloning technology and the anonymity provided by digital communication channels. Scammers now employ this deceitful tool in various ways. They play on our emotions and trust, making it critical to be vigilant.
Technology’s Role in Escalating Scams
The prevalence and believability of AI-driven voice scams are naturally linked to advancements in technology:
- Voice Cloning Technology: The technology behind voice cloning has become increasingly sophisticated. It now allows scammers to replicate voices with remarkable accuracy. They can craft personalized, convincing messages that mimic the tone, accent, and emotional nuances of their targets, thereby making it even more challenging to detect fraud.
- Access to Audio Data: Scammers can obtain voice samples from various sources, including social media, recorded phone calls, or public speeches. These samples serve as the building blocks for creating a convincing voice clone. The widespread sharing of personal content online inadvertently provides scammers with a wealth of material to work with.
- Digital Communication Channels: The prevalence of digital communication channels like voice calls, video calls, and instant messaging apps facilitates scammers’ ability to reach potential victims with greater ease and immediacy. These channels often lack the visual and contextual cues to help identify impersonation.
- Caller ID Spoofing: Scammers have perfected the art of caller ID spoofing, making their calls appear as though they originate from legitimate sources, such as a government agency, credit union, or a local number. This technology-enabled tactic further enhances the believability of their schemes.
Spotting the Silent Threat
Spotting a scammer’s deceptive tactics is essential to protecting your household from an AI voice scam:
- Verify Caller Identity: When receiving a call from someone requesting personal information or funds, independently verify their identity by calling them back through a known, trusted number. Scammers often use caller ID spoofing to appear legitimate.
- Examine the Request’s Urgency: Scammers frequently rely on a sense of urgency to manipulate their targets. If you are pressured to act immediately, take a step back and scrutinize the situation. Ask for a callback number to verify their identity. Is this a known, trusted number? Consult another family member or friend before proceeding.
- Trust Your Instincts: If a request or call seems unusual, trust your instincts. Scammers often employ emotional manipulation to cloud your judgment. Take a moment to reflect before acting.
- Educate Your Household: Ensure that your family members are well-informed about the existence of AI voice scams, as well as the importance of verifying caller identities and the legitimacy of requests.
- Implement Multi-Factor Authentication (MFA): This extra layer of security can protect your accounts, even if scammers obtain some of your personal information.
The Emotional Manipulation Game
AI voice scammers are skilled at playing on emotions, using empathy and distress as powerful tools. They exploit our innate desire to help, especially when a loved one appears to be in trouble. By impersonating family members or trusted entities, they create a sense of urgency, leaving victims with little time to reason.
Be proactive in defending your household. Remember that genuine family members or reputable organizations would understand your need to verify their identity before divulging sensitive information or making financial transactions. Undoubtably, this simple precaution can be a robust defense against the emotional manipulation tactics of scammers. Remember, Choice One Community Credit Union will never proactively reach out to request any personal or financial information.
Proactive Measures for Protection
Shielding your household from AI voice scammers requires taking proactive measures. Here are some steps you can implement:
- Establish Family Verification Protocols: Create a set of secret questions or a family “safe word” that can be used in emergencies to confirm the identity of family members.
- Use Secure Communication Channels: Whenever possible, communicate sensitive information through secure channels, such as encrypted messaging apps or official websites.
- Report Suspected Scams: If you believe an AI voice scam has targeted you, report it to your local law enforcement agency and relevant consumer protection authorities, such as the FTC. Your vigilance can help prevent others from falling victim.
- Stay Informed: Finally, keep abreast of the latest cybersecurity threats and best practices for safeguarding your household by regularly reading our Choice Words Blog. Being informed is your first line of defense.
Take Steps to Prevent Voice Scams
In summary, AI voice scams are a growing menace. Clearly, the technology of voice cloning makes it easier for scammers to impersonate trusted individuals, preying on our emotions and trust. To defend your household against this silent threat, educate your family, verify caller identities, and be proactive in implementing safety measures.
Read more about current scams in our Choice Words Blog post “Beware of ‘Brushing’: The Newest Mail Scam.”
In our interconnected society, where e-commerce and online shopping have become the norm, we often find ourselves excitedly receiving packages on our doorstep. However, not every package that arrives is a cause for celebration. A recent United States Postal Service (USPS) alert raised concerns about a relatively new and crafty scam called ‘brushing.’ This scam is designed to defraud both consumers and e-commerce platforms, and it’s essential to be aware of its existence and the warning signs to avoid falling victim.
USPS Alert: A Warning Worth Heeding
The USPS alert, released in response to rising cases, describes brushing as a scam where individuals or entities send unordered merchandise to consumers. The key objective behind brushing is not to provide customers with free items, as one might initially assume. Instead, it’s a clever ploy to boost a seller’s reputation on reputable e-commerce platforms artificially. The idea is to create fake reviews, make their products appear more popular, and potentially manipulate search rankings. It might seem like a bizarre act of goodwill to the unsuspecting recipient, but the scam’s intentions are far from kind.
Understanding Brushing: How Does It Work?
To comprehend brushing, one must first recognize its underlying mechanisms. The process typically begins with unscrupulous sellers or businesses, often operating on e-commerce platforms. These entities might operate under multiple aliases, making it challenging for online marketplaces to trace their activities accurately.
Here’s how the brushing scam unfolds:
- Unsolicited Packages: The scam starts when a recipient, unaware of their impending involvement, receives a package they never ordered. This package may contain anything from electronics to clothing, cosmetics, or other items.
- Fake Reviews: After the package arrives, the seller, posing as the recipient, writes glowing reviews for their products using various accounts and aliases. These fraudulent reviews aim to deceive potential buyers and boost the seller’s credibility.
- Fictitious Sales: To further solidify their online presence, the scammer might fabricate sales records for their products, claiming to have sold several items to unknowing customers.
- Manipulating Search Rankings: The ultimate goal of brushing is to manipulate search engine rankings on e-commerce platforms. As products receive more positive reviews and higher sales figures, they move up in search results, making them more visible to prospective customers.
- Financial Implications: While recipients might believe they’ve received a free gift, brushing scams can have financial repercussions. In some cases, recipients may receive invoices or demands for payment, leading to confusion and, potentially, financial loss.
Warning Signs of Brushing
To protect yourself and your personal information from this deceptive scam, it’s crucial to be vigilant and recognize the warning signs of brushing. Here are some key indicators that should raise suspicion:
- Unexpected Packages: Receiving unexpected packages that you didn’t order is the most apparent sign of brushing. Be cautious if you haven’t recently placed an order, especially from an unknown seller.
- Missing Invoices or Payment Requests: If you receive a package with no accompanying invoice or payment request, consider it a red flag. Brushing scammers may send invoices later, attempting to collect payment for items you never requested.
- Suspicious Sender Information: Look closely at the package’s sender information. If it appears unfamiliar or lacks legitimate contact details, exercise caution.
- Multiple Packages: Receiving numerous unordered packages from different sellers is a sure sign of brushing. In such cases, it’s essential to be proactive and investigate further.
- Online Account Activity: Monitor your online shopping accounts regularly for unauthorized activity. Be vigilant about fake reviews posted under your name, especially if they praise products you’ve never purchased.
- Phishing Attempts: Brushing scams can also lead to phishing attempts. If you receive follow-up emails requesting personal or financial information related to the unsolicited package, be extremely cautious and do not respond.
- Track Your Orders: Keep track of your online orders and confirmations. This will help you identify discrepancies between what you’ve ordered and what’s arriving at your doorstep.
What to Do if You Suspect Brushing
If you suspect that you’ve become a victim of brushing, it’s essential to take immediate action to protect yourself:
- Do Not Pay: You should not pay for unordered merchandise or any associated invoices. Ignoring these requests is the safest course of action.
- Contact the Seller: If you can identify the seller responsible for the unsolicited package, attempt to contact them and clarify the situation. However, exercise caution when sharing personal information.
- Monitor Your Accounts: Monitor your online shopping accounts for any suspicious activity, including fake reviews or unauthorized access.
- Report the Scam: Contact the e-commerce platform and the USPS to report the scam. Provide them with all relevant information to assist in their investigation.
- Review Your Finances: If you receive an unexpected invoice or payment request, review your financial statements carefully and report any fraudulent charges to your credit union or credit card company.
Beware of ‘Brushing’
Brushing is a clever and devious scam that preys on our excitement about receiving packages and our trust in online shopping. By familiarizing yourself with the USPS alert and the warning signs of brushing, you can protect yourself from potential financial and identity-related threats. Stay vigilant, be cautious of unsolicited packages, and report any suspicious activity promptly. Awareness and action are your best defenses against this emerging mail scam trend.
Learn more about protecting yourself from scams in our Choice One blog “5 Tips to Avoid Text Scams.”
Read more fraud prevention tips on the Choice One Community Credit Union Fraud Protection page.