Card Cracking: Scams aimed at unsuspecting Consumers

Ever been on a social media site and seen a contest with a celebrity affiliation, or one offering a gift giveaway? Take a hard, second look. If once you click on the link, you’re asked for your bank information (PIN, online banking password, etc.) you can be sure that what appears to be a fun, innocent offer is actually a scam.

It’s called “card cracking.” As soon as the scammers have your personal information, they deposit multiple checks into your account and then withdraw the money quickly — all before the bank has time to figure out that the checks are fraudulent.

There’s a second piece to this type of fraud — one that can get you into serious trouble. It often comes in the form of a post offering fast cash or even promoting card cracking as a way to pay your bills. The scammer will ask for your bank information and then offer you a “piece of the action” for allowing checks to be cashed through your account. This is highly illegal and can put you right in the middle of a scam. Even if you had no idea that this was wrong, you too will bear responsibility — damaging your financial future.

Some tips from the American Bankers Association to help avoid becoming a victim:

• Don’t respond to online solicitations for "easy money." Card cracking advertisements will suggest that this is a quick, safe way to earn extra cash.
• Never share your account and PIN number. No valid contest requires people to hand over any financial information.
• Do not file false fraud claims with your bank.By filing a false claim, you are a co-conspirator to fraud. Banks' detection techniques for card cracking are constantly improving and suspicious claims will be investigated.
• Report suspicious posts linked with scams. If you notice postings that appear to be linked with a possible scam, report them to the social media site.