CONSUMERS

Card cracking and 5 scams that fool millennials

David P. Willis
@dpwillis732

Fraudsters don't just go after your grandparents' savings.

Millennials, be on alert. There is a minefield of scams out there that are aimed to either steal your money, your identity or worse.

A scam, called card cracking, is targeting young consumers ages 18 to 35, including college students, newly enlisted military members and single parents. These consumers, lured by the prospect of some quick cash, end up involved in a crime.

In card-cracking scams, criminals use social media, such as Facebook, Twitter and Instagram, to make first contact.

"Generally, what they see is an advertisement that makes it look like easy money," said Doug Johnson, senior vice president of payments and cybersecurity policy for the American Bankers Association.

Just because you’re young and hip doesn’t mean you can’t get scammed.

How it works

You are convinced by the scammer to share your debit card, personal identification number or online login. In turn, the criminal deposits a fake check into your account and quickly withdraws money from an ATM before the bank realizes it's counterfeit, the association said. You get a kickback.

You report your debit card as lost or stolen and the bank reimburses the stolen funds to you. What do you get for your troubles? Your involvement in a crime and the possibility of criminal charges. "The person is complicit in this crime," Johnson said.

A survey by the American Bankers Association found that banks got hit by more than $18 million in card-cracking attempts since January 2013. The loss amounted to more than $6 million in more than 2,600 card-cracking scams.

"We are seeing an increase in this particular scam," Johnson said.

So what can you take away from all of this? Don't respond to online solicitations offering quick cash. "Easy money is rarely legal money," the ABA said.

Never share your account information and details with anyone and don't file false fraud claims. The association said banks' detection techniques for card cracking are improving.

Much attention is paid to scams that target older people, but millennials are vulnerable too.

Other scams

Card cracking is just the start. Press on Your Side turned to Credit.com's Adam Levin and Gerri Detweiler for help in identifying some of the worst scams that are hitting millennials.

Scholarship lotteries. A student receives a telephone call about winning a scholarship. The caller needs the account information to deposit the money. "The victim provides the information and checks their account to find that rather than a deposit their has been a withdrawal from their account," said Levin, Credit.com's chairman. (Immediately notify your bank if this happens and make a request to have the funds restored to your account.)

Student debt elimination programs. Many of these programs are scams that require upfront fees. You are exposed to identity theft once you hand over your personal and financial data, Levin said.

Job scams. Fraudulent websites, taking advantage of the tough job market, vacuum your personal information. You're left without any help in your quest to find a job or you may get hit with requests for upfront fees, Levin said.

Bogus contests. Quizzes on social networking sites, or pop-up windows linked to seemingly legitimate sites, are tools scammers use to steal your personal data, Levin said. For instance, fraudsters can use the answers, such as your favorite color or street you grew up on, to answer security questions to your account and hack their way in.

Cellphone scams. The one-ring call from a number you don't recognize maybe a scam. The call or text message are both ways to lure you into calling a number that is really a pricey overseas call, said Detweiler, Credit.com's director of consumer education.

Do you have a consumer problem that needs solving? Contact David P. Willis at 732-643-4042, pressonyourside@gannettnj.com or facebook.com/dpwillis732.