Why We Fall for Scams, Even When We Sense Something Is Wrong

Posted on: February 3rd, 2026 by Steven R

Fraud is one of the fastest growing threats affecting everyday consumers, businesses, and financial institutions. Many people picture cybercriminals breaking into systems using advanced technical skills, but in reality, most fraud begins with human behavior. At the same time, technical fraud is becoming more sophisticated as criminals use automation and AI to exploit financial systems.

Whether it is an email asking you to click a suspicious link, a scammer pretending to be a legitimate business, or an AI system trying thousands of fake transactions in seconds, the goal is always the same. Criminals want access to your money or your information.

Understanding where fraud actually comes from is the first step in protecting yourself.

Key Takeaways for Our Members

Most fraud starts with human behavior, not computer hacking. Criminals rely on manipulating emotions like trust, fear, urgency, and excitement to get people to act quickly.

Your instincts are usually right. When something feels off, that early warning is often accurate, but emotions can override it because we want the story or opportunity to be true.

Social engineering is the number one driver of fraud. Scammers pretend to be trusted people or organizations to push you into decisions you would never make on your own.

Technical fraud is growing fast thanks to AI. Criminals now use automation to test card numbers, guess passwords, and mimic normal online behavior at massive scale.

Fake online auto dealers are becoming a major national scam. Professional looking websites with stolen photos and low prices are used to trick buyers into paying for cars that do not exist.

AI voice cloning creates realistic sounding emergency calls from “family members.” Scammers only need a few seconds of audio to imitate someone you know and pressure you into sending money.

Urgency is one of the biggest red flags. Anything involving immediate payment, secrecy, or emotional pressure is almost always a scam.

Scammers commonly use irreversible payment methods. Fraudsters prefer wire transfers, gift cards, crypto, or payment links because once the money leaves your account, it cannot be recovered.

Fraud affects even careful, intelligent people. Scams succeed because they target human nature, not lack of awareness. Slowing down and verifying is your strongest defense.

Your credit union is here to help. When something feels suspicious, contacting us before acting can prevent losses and help you stay protected.

Social Engineering vs. Technical Fraud

Social Engineering, The Human Factor

Social engineering is involved in 60 to 98 percent of global breaches. Phishing, impersonation, and manipulation continue to be the most common ways criminals gain access to accounts or personal information. These scams work because they target human instincts, such as trust, urgency, or fear.

Criminals may pretend to be a bank employee, a government agency, or even a family member. Their goal is simple. They want you to take an action that benefits them, often before you have time to think.

Technical Fraud, When Criminals Target the System Instead of the Person

Technical exploitation is less common, but it is growing quickly. It includes things like:

AI assisted card testing
Automated credential guessing
Attacks on unpatched systems
Fraud through vulnerable websites or payment portals

Last fall, our organization experienced this firsthand. Attackers used AI tools to study our card number patterns, then sent thousands of small authorization attempts across various merchants. There was no phishing, no malware, and no employee involvement. It was a purely automated fraud attempt that looked like normal transaction activity.

Our security systems detected and blocked the attack, but it highlights how technical fraud is evolving and becoming faster and more automated than ever.

Why Social Engineering Works Even When We Feel Something Is Off

Social engineering succeeds because it targets human emotion, not logic. Many times, people notice that something feels wrong very early in the interaction. Maybe the seller will not allow an in-person inspection. Maybe the price looks too good. Maybe the story does not quite add up. Our instincts are good at detecting risk, and most of us can sense when something is not quite right.

However, fraudsters understand something deeper about human behavior. Even when we feel the red flags, there is often a louder voice inside us that wants the offer to be real. People want a great deal. They want the problem to be solved quickly. They want to believe that the opportunity is legitimate. That emotional pull can overpower the quiet warning we feel in our gut.

This is exactly why social engineering is so effective. Criminals build their scams around the things people hope for.

Examples include:

A vehicle priced far below market value
A seller claiming someone else is ready to buy unless you act now
A message from a “family member” asking for help
An unexpected refund or prize
A threat from someone claiming to be from a government agency

All these situations are designed to create urgency, excitement, or fear. In high emotion moments, the brain shifts into reaction mode instead of analysis mode. The internal voice that says “I knew something was wrong” often appears only after the fraud is complete.

This is not a flaw in intelligence. It is simply human nature.

Fraud works because it plays on our hopes, our habits, our fears, and our desire to trust people. That is why slowing down is one of the most powerful tools we have. Taking a moment to pause, ask a question, verify a detail, or contact us at the credit union can be the difference between safety and becoming a victim of a scam.

If something feels off, it probably is. Trust that first instinct. Then double check before taking action.

Specific Example: Fake Online Auto Dealers

Law enforcement agencies across the country are warning consumers about a growing and highly convincing scam involving fake online auto dealers. Criminals create professional looking dealership websites or social media profiles using stolen photos, cloned listings, and prices that seem too good to be true. Their goal is to trick buyers into sending money for a vehicle that does not exist.

Fraudsters often:

Copy legitimate listings from real dealerships
Use stock photos or low-resolution images
Create websites designed to look professional but missing key pages
Refuse to allow you to see the vehicle in person
Pressure you to pay quickly using irreversible methods like wire transfers

If a seller insists on payment before you can inspect the vehicle, that is a major warning sign. These scams are becoming common on Facebook Marketplace, Edmunds, and even sites that appear reputable.

How to Protect Yourself from Fake Auto Dealer Scams

Before buying a vehicle online, keep these protections in mind:

Always inspect the vehicle yourself or send a trusted mechanic on your behalf.
Research the dealer or seller and make sure they actually exist.
Use Google Maps to verify the address of the dealership.
Never send money through wire transfers, cryptocurrency, or gift cards.
Request the VIN and verify the vehicle history through Carfax or AutoCheck.

Again, if you believe you have been scammed, you should report it to:

The Federal Trade Commission
Your State Attorney General’s office
The Better Business Bureau

And of course, reach out to us right away so we can help guide you through the next steps.

Fraudsters Can Use AI to Mimic a Family Member’s Voice

One of the fastest growing forms of social engineering involves criminals using artificial intelligence to clone a person’s voice. With just a few seconds of audio taken from social media, a voicemail greeting, an online video, or even a background clip in a family recording, AI tools can generate a nearly perfect imitation of someone’s voice.

Scammers use this technology to create urgent scenarios. They pretend to be a child, grandchild, sibling, or other family member who suddenly needs financial help. The message might claim they were in an accident, stranded somewhere, arrested, or in another situation where they cannot talk long. The criminal counts on the emotional connection and the instinct to help loved ones.

This type of scam works because it combines two powerful psychological triggers. The voice sounds just like the person you care about, and the message contains intense urgency. Together, these elements push people to react quickly before stopping to verify the situation.

Even when people feel something is not right, that instinct is often drowned out by an even stronger desire for the emergency to be real, or at least for the problem to be solvable. In the moment, the emotional reaction often wins over logic.

How to Protect Yourself from AI Voice Scams

You can lower your risk by building habits that slow down the emotional reaction and give you time to verify what is happening.

1. Always pause before acting

If you receive a call or voice message from a family member in distress, take a moment to breathe and think. Scammers rely on panic and urgency.

2. Hang up and call the person back

Use the phone number already saved in your contacts. Do not rely on the number that called you.

3. Create a family password

Choose a simple word or phrase that only your family knows. If someone calls claiming to be a relative, ask for the password. You can also agree on a question only your family would know the answer to.

4. Contact another family member

A quick call or text to another trusted person can confirm whether the situation is real.

5. Be skeptical of requests for urgent financial transfers

Scammers often demand wire transfers, gift cards, cryptocurrency, or other payment methods that are impossible to reverse.

6. Trust your instincts

If something feels off, it probably is. The emotional weight of the situation may make you want the story to be true, but that is exactly why criminals choose this method. Slow down and verify before reacting.

More Examples of Modern Fraud

Fake CEO Voice Calls

Attackers have used AI-generated voice cloning to impersonate executives and demand urgent wire transfers. This type of scam has fooled experienced employees at legitimate businesses.

Vendor Email Compromise

In some cases, criminals hack into a vendor’s email and wait for the perfect moment to send fake payment instructions. Because the email is legitimate, the scam is very convincing.

Credential Stuffing

Large lists of stolen usernames and passwords are used by automated bots trying thousands of logins per minute. If you reuse passwords, your accounts are more vulnerable.

MFA Fatigue Attacks

Criminals send repeated login approval requests hoping you eventually tap “approve” just to silence the notifications. Always deny unexpected MFA prompts.

Crypto Scams

These scams typically work by convincing someone to send cryptocurrency to a scammer under the promise of quick profits, guaranteed returns, or an urgent financial situation. Criminals often use fake investment platforms, impersonate trusted companies or individuals, or pressure victims into paying with crypto because these transactions cannot be reversed. Once the funds are sent, the scammer disappears and the money cannot be recovered. A common example looks like this: “Send $50,000 to pay the taxes and receive your $500,000 in the account.”

Romance Scam

Romance scams work by building emotional connections over time, then creating a sudden crisis that leads to requests for money. The scammer plays on trust, loneliness, and hope, making the victim want to believe the relationship is genuine even when something feels wrong. Once money is sent, the scammer cuts off contact and disappears.

Fraud Cannot Be Eliminated, but Risk Can Be Reduced

No organization or individual can completely remove the risk of fraud. Humans make mistakes, technology has vulnerabilities, and criminals are constantly adapting; but education, awareness, and smart habits go a long way toward reducing risk.

Here are some of the most effective ways to stay protected:

Question anything unusual, even if it appears to be from a trusted source.
Never act on urgent or high-pressure requests involving money.
Use strong passwords and avoid reusing them across sites.
Keep your devices and apps updated.
Monitor your accounts regularly.
Contact us if anything feels suspicious.

We Are Here to Help

Fraud is evolving quickly, but you do not have to face it alone. If you have questions about a suspicious message, a strange purchase request, or an online listing that does not feel right, reach out to us. We are always here to help you stay safe.

Prevent Card Skimming Fraud

Posted on: February 11th, 2025 by Ashley No Comments

There is recent news about card skimming fraud happening in St. Louis County areas. We want to remind our members and community to be careful where you use your card and always do a scan before inserting your card into gas pumps, ATMs, vending machines, etc.

Card skimmers collect data from your debit and credit cards’ magnetic strip, allowing scammers to access your accounts and other personal information.

Example of a credit card skimming machine

How Card Skimming Happens

Skimmers read the magnetic strip on a card when it is swiped at a point-of-sale machine or ATM. Skimmers can also record PIN entries.

A skimming device is not obvious at first glance. Devices installed on the outside of card reading machines can look like they belong there. Some devices are attached inside the card slot, making it even harder to detect. The skimming device reads and collects your card information.

If you notice a skimming device is present after you inserted your card, you should call local authorities and your financial institution immediately. Unfortunately, most people never notice the device until it’s too late.

Avoid Getting Skimmed

Before you insert your card into any machine, do a visual scan. Make sure the card reader isn’t loose or damaged, look to make sure the graphics are still aligned and that the card reader isn’t a different color from the rest of the machine. Look for any signs of tape or gluey residue around the card reader. If anything looks a little off or suspicious, do not use that machine. Better to be safe than sorry.
Non-bank ATMs are considered the most common machines targeted by criminals installing skimmers. Be extra wary if you are using a non-bank ATM. Look at the keypad for loose, mismatched, or spongy-feeling buttons before you insert your card and enter your PIN.
Pay inside instead of paying at the pump for gas, especially if your gas station does not have contact-less payment methods like tap to pay.
Sign up for account alerts at your financial institution. It won’t alert you if your card is skimmed, but it can alert you if you have unauthorized online banking logins or unauthorized charges on your card. Check your account regularly and know what is coming out and when.
Use mobile wallet or contactless payments (tap to pay). Tap to pay are generally safer than other payment methods because each transaction creates a unique, encrypted code that is sent to the payment terminal, providing extra security to protect your personal information. The chips in contactless cards are much harder to tamper with or clone.

Details of a fake credit card machine. Wider borders, backlight for keys aren't visible or very faint, frame feels wiggly or detachable, unusual thickness to keys, keys feel "sticky" or "Spongey" when pressed, wider space below keys

Always stay aware of your surroundings and vigilantly protect your payment information! Being extra cautious could save you from falling victim of identity theft.

NorthRidge has contactless cards!

Identity Theft – Protect Yourself

Posted on: July 3rd, 2024 by Ashley

Protect Yourself

On our blog last week, we talked about the ways identity thieves steal your information and what they might do with it once they get it. Things like using your identity when being arrested or investigated, maxing out your credit cards and taking out new credit in your name, acquiring income in your name, and more. Things that have the potential to be totally financially devastating if not caught early.

There are steps you can take to protect yourself from falling victim to identity theft. It’s important to be aware of the possibility and keep it in mind.

Guard your cards. Credit/Debit card fraud is a type of identity theft. This is when someone gains access to your payment card and uses it to make purchases you did not authorize. Be cautious about where you enter your card information online, never make purchases from an untrustworthy or unknown website and never allow websites to “remember” your card number. Do not give your card information over the phone unless you made the call and you know you’re speaking with a trustworthy business. Go paperless when possible for bills and statements and review your statements to verify account activity. Card fraud may not require that you freeze your accounts and file a report with the FTC, but ask your financial institution’s fraud department what they recommend.

Use credit monitoring services. You can use a paid service for robust monitoring, which might be necessary depending on your financial status or if you operate a business. CreditKarma.com is a great free service that allows you to review your credit report to find if any new accounts have been opened in your name. Report and investigate anything that doesn’t add up.

Protect your phone. If you store personal information in your smart phone, you need to keep your phone locked and secure with passcode, touch ID, or face ID.

Be Wi-Fi Aware. Public Wi-Fi is an identity thief’s playground if it is not secure. Make sure the Wi-Fi you’re accessing is the correct network and that it is authenticated. Sign out of all accounts as soon as you are finished. Consider using a VPN when on public Wi-Fi.

Practice good cyber security. Be wary of spammy emails, it’s better to just delete it if it seems suspicious. Stop and think before clicking links. Change your passwords regularly and don’t use the same password over.

Signs of Identity Theft

Identity theft is so devastating because many people don’t know they are a victim until they are notified by a financial institution. Do not rely on others to notify you of potential fraud – know what to look for and conduct checkups on your information regularly. Early detection can limit the damage. You may be a victim of identity theft if:

There are errors or unfamiliar transactions on your bank and/or credit card accounts.
Your credit report shows accounts you didn’t open and/or inquiries made for new credit accounts like loans or credit cards that you didn’t initiate.
You receive collection calls on debts that aren’t yours.
You know you have good credit but get denied when applying for new credit.
You get bills for accounts you didn’t open or medical services you didn’t receive.
Your health insurance indicates your benefit limit was reached when you have a legitimate medical claim yourself.
Your medical records show a condition that you do not have.
The IRS notifies you of income from an employee for whom you’ve never worked.
There is a data breach at a company that involves your information.

It Happened… Now What?

If you notice anything fishy with your accounts, medical records, taxes, or even your criminal record, you need to take immediate action to resolve it. Remember, fast action limits damage.

Steps to Take Immediately:

First, call the fraud department at your financial institution(s) where fraud has occurred. They will give you instructions on what you need to do. You may or may not need to complete the following steps below, but ask the fraud department what they recommend. They will most likely deactivate any compromised cards. If necessary, ask them to freeze or close your accounts to prevent any additional charges.

Second, contact one of the three major U.S. credit reporting companies to report yourself as a victim of identity theft and place an initial fraud alert. The one you contact must tell the other two, so you only need to contact one.

Equifax: 888-766-0008
Experian: 888-397-3742
Transunion: 800-680-7289

Next, order a credit report. You are entitled to one free copy of your report once per year from all three credit bureaus. You must contact all three to order a report from each one, starting with one immediately and the other two in a month or so to track any new fraudulent activity. Review it immediately and report any fraud details you find to the FTC and possibly the police.

Then, file a complaint with the FTC about the theft by going to reportfraud.ftc.gov or by calling 877-438-4338. Include as much detail as possible about the theft and follow their instructions carefully. Save and print your completed complaint. The printed complaint becomes your Identity Theft Affidavit. This affidavit helps you create an Identity Theft Report. Keep records of the day and time you file your complaint, the complaint reference number, and extra copies of the affidavit.

Finally, file a police report by going to your local station (or the station where the theft occurred if it was an attack on your criminal record). Bring your FTC Identity Theft Affidavit, any other proof of the theft, proof of address, and your government-issued photo ID.

You can never be overprotective of your personal information and identity! Protect it and protect your financial future.

Identity Theft

Posted on: June 26th, 2024 by Ashley

What is Identity Theft?

Identity theft is a federal crime. It is when someone uses your personal information without your permission or knowledge. The purpose is usually for financial reasons. Identity theft is the most common form of financial fraud. Prime targets are children, students, military members, veterans, and seniors but it can happen to anyone.

Typically, identity theft is when a thief steals your personal information to pose as you in some way. Synthetic identity theft is the use of some of your personal information, like your Social Security Number, combined with fake information, like a different name, to create an entirely new persona. This type of identity theft is harder to detect and can lead to more damage.

How do they get your info?

While some of these may seem like old tactics, they are still widely used and very effective for thieves. These things are especially important to keep in mind when you are traveling.

Mail Theft. Stealing mail out of mailboxes is still a common form of thievery. Consider a PO Box or a locking mailbox if possible.

Dumpster Diving. Thieves dig through trash to find key information about you. Shred documents that contain information about you before throwing them away.

Shoulder Surfing. Always conceal keypads with your hand or body when entering PINs, credit card information, or passwords.

Purse/Wallet Theft. Don’t carry your Social Security card in your wallet. Keep minimal payment cards on you and know which ones you have.

Computer Hacking/Online Identity Theft. The digital world has provided more opportunities for identity thieves, making it easier than ever for them to steal your information. Virtually lock your identity by practicing cyber security every single time you go online.

What happens with your info?

An attack on your identity can cause severe damage to your finances, credit score, and complicate your life in many ways. Thieves might:

Drain your bank accounts
Use and max out your credit card/s
Open new accounts in your name (bank accounts, cell phones, credit cards, etc.)
Acquire government documents with your name and their photos (like a driver’s license or a passport)
Take out loans in your name
Receive medical attention under your insurance
Use your identity upon being investigated or arrested by police, creating a false criminal record in your name
File a fraudulent tax return and collect a refund in your name
Get a job and have earnings reported as your income

Think if any one of the above things happened to you and how devastating it could be. Oftentimes, identity theft includes more than one of the above. It is so important to protect your information. Stay tuned in this week and next while we share best practices for protecting yourself, signs of identity theft, and the immediate steps to take if it happens to you.

Watch next week after this series for a quick one-question quiz on identity theft and your chance to earn a $20 Visa gift card!

Employment Scams

Posted on: April 2nd, 2024 by Ashley

Job and Employment Scams

In an increasingly virtual world, with countless remote-work jobs becoming more and more available, there are more opportunities than ever for scammers to get creative with employment scams. A scammer will advertise for a “job” in the same ways an honest employer would – on job sites and social media, in local newspapers, even on TV or on the radio. You are promised a job, and in return they collect your personal information and sometimes your money.

Examples of a Job or Employment Scam

Remote work. Many people dream of working from home, scammers know this and regularly try to take advantage. Scammers offer a job such as reshipping or reselling products or offering start-up kits to help you start your own business with just a small investment. The general rule of fraud applies here: If it sounds too good to be true, it probably is. If you are offered a job where you are led to believe you can make tons of money in relatively short time, it is almost undoubtedly a scam.

Common Remote Work Scams:

Reshipping scams. The company says your job is to receive packages to your home address, throw away original packaging, and then repackage and reship to a different address. A reputable and honest “re-shipper” company does not exist – this is a scam. This dishonest company now has your personal information from “new hire” paperwork, and you may encounter an identity theft situation.
Reselling scams. The company claims you can make money by buying brand name products for low prices and then resell them and keep the profit. You end up receiving junk products or nothing at all after paying the company hundreds of dollars on goods.
Virtual personal assistant scams.
Mystery shopper scams. Some mystery shopper jobs are real; however, honest mystery shopping companies won’t ask you to pay for anything (such as certificates, directories, etc.).

How to Avoid Job and Employment Scams

Before you apply to a job posting, look the company up online. Make sure they exist, are honest, and have real employee reviews from career websites like Indeed or Glassdoor. Some small companies may not have reviews, but you can determine their legitimacy in other ways.

Mention the job to someone you trust, like a relative or best friend. Get the advice from others who are not emotionally invested.

Do not pay for the promise of a job. Honest employers, especially government jobs, will never ask you to pay to get the job. Do not fall for the idea that you can pay for a startup kit or masterclass to launch a successful online business from home. These offers are almost always a scam to get your money and very, very few people are successful in operating a business from this type of scenario.

What to do if you Paid a Scammer

Accidents and lapses in judgement happen… but now what? Immediately contact the financial institution you used to send money and report the fraud. You can ask to have the transaction reversed, if possible, but it is unlikely you get your money back if you paid out of a checking account (with a cash transferring app or a debit card). If you used a credit card, you may have more luck reversing the transaction.

If you provided information about your accounts (card numbers, account numbers), contact your financial institution immediately to deactivate cards and close accounts.

Report Job Scams to the FTC

If you see a job scam, or lose money to one, report it to the FTC at ReportFraud.ftc.gov. You can also report it to your state attorney general.

Find out more about how to avoid scams at ftc.gov/scams.

Source: FTC Consumer Advice. https://consumer.ftc.gov/articles/job-scams

Quiz and Contest Rules

There will be a two-week timeframe from when this blog is posted to read it and take the quiz. Those with the correct answers will be entered into the drawing for that post. Winners will be contacted via the information they entered when taking the quiz. One entry per person. NorthRidge employees and their immediate family (spouses, parents, children, live-in partners), and board members, are not eligible to win. Additional giveaway rules are located here.

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