Fraud: Essential Information for Your Protection

Fraudsters are constantly finding new ways to trick people and take their money — but you can stay one step ahead by knowing what to look for. In 2024, the Federal Trade Commission (FTC) received 2.6 million reports of fraud. This reflects a troubling trend: fraudsters are increasingly targeting consumers, particularly through scams, investment frauds and online card theft. 

This article outlines several of the most common fraud schemes targeting you today, along with practical steps you can take to safeguard your information. Remember, the fraudsters’ goal is to obtain as much information from you as they can to access your accounts and deplete your funds.

Spoofing — Appearances Can Be Deceptive

Spoofing occurs when a fraudster manipulates caller ID to make it appear as though a call is coming from a trusted source — like your bank, your utility company or someone you know.

What it might look like: 

• You receive a call that appears to be from Cathay Bank, warning of a problem with your account and asking you to confirm your online banking details.

Red flags include: 

• An incoming call asking for information a legitimate bank employee would already have, often delivered with a sense of urgency.

How to protect yourself:

• Don’t rely on Caller ID when receiving incoming calls.
• We will never ask for your online banking password, card PIN or text message security codes.
• Do not share any personal information over the phone such as your address, your date of birth or your Social Security number.
• If an incoming caller asks you to confirm personal information or banking details, hang up and call the number on the back of your bank card.

Investment and Urgency Scams

Some fraudsters try to create pressure or excitement, so you act before thinking it through. They often create a sense of urgency to stress you out and prevent you from taking the time to consult a family member or someone you trust.

What it might look like:

• Someone offers an “exclusive investment” or claims that a family member needs money urgently and you must send funds right away. Sometimes they’ll ask you to wire the money, use Zelle to send the funds or buy gift cards. In some cases, they can pretend to be a family member in distress, such as a grandchild who is calling for your help.

Red flags include:

• The urgency to act quickly without thinking it through and attempts to trigger an emotional response from you.

How to protect yourself:

• Be wary of anyone urging you to act fast, even if they claim to be family.
• Take the time to research and make sure you’re not being taken advantage of.
• Talk to someone you trust in person or give us a call if you’re unsure.
• Banks, utility companies, phone providers, the IRS or any other government agency will never request payment in the form of a gift card.

Debit Card Fraud — Keep an Eye on Your Accounts

Fraudsters may call you by pretending to be your utility company or your bank and trick you into sharing your debit card details and PIN information. Sometimes they steal this data through other means with the goal of making unauthorized purchases or withdrawals to deplete accounts.

What it might look like:

• Small charges show up before larger fraudulent transactions, often on ecommerce platforms.

Red flags include:

• Fraudsters calling to ask you to confirm the numbers on your debit card or to confirm your PIN.

How to protect yourself:

• Keep your debit card number and PIN secure and never share your PIN with anyone.
• Set up transaction alerts through our online banking or mobile application.
• Regularly review your statements and call us if you notice anything unusual.
• Always notify us if you haven’t received a card in the mail that you were expecting.

When in Doubt, Call Us First

If something doesn’t seem right – whether it’s a phone call, a text message, an email or a transaction on your statement — trust your instincts. Stop, think and call. Use the number on the back of your card to call us directly or visit our official website. 

How to Report Fraud Officially

In addition to contacting Cathay Bank, you can also report fraud on the following sites:

• Federal Trade Commission (FTC): reportfraud.ftc.gov
• Identity Theft Help: identitytheft.gov

Related Links:

• Two-Factor Authentication Explained
• Vishing: Understanding, Identifying, and Preventing Voice-Based Attacks