Three Words That Could Save You $25,000: Just Hang Up!

A Knight Insurance Group client recently received a phone call from someone claiming to be with the fraud department of her credit union. The caller said her personal information had been compromised and that the credit union was cooperating with federal authorities in an investigation involving criminal activity at one of its branches.

To "protect" her identity and safeguard her money, she was instructed to transfer $25,000 to a newly created account at a well-known national bank. She was assured the funds would be returned after the investigation concluded in a few days. The caller also instructed her not to tell anyone—not her husband, not her family, and not bank employees—because it could jeopardize the investigation.

Believing she was helping law enforcement and protecting her finances, she followed the instructions and transferred the money.

It was all a scam.

After reporting the fraud, the criminals contacted her again—this time threatening that she could be arrested for money laundering if she didn't continue cooperating. This intimidation tactic is common among today's sophisticated fraud schemes and is designed to keep victims from seeking help.

Fortunately, this client had added Personal Cyber Fraud Protection to her homeowners insurance policy. After filing a claim, she was reimbursed for the loss, less her deductible.

The most surprising part? She was financially savvy, well educated, and not someone who is easily manipulated. Yet today's scammers are highly trained professionals. They create convincing stories, create a sense of urgency, isolate their victims by telling them not to speak with anyone, and pressure them into making decisions they would never normally make.

Three Red Flags to Remember

If a caller tells you to:

• Move your money immediately

• Keep the conversation a secret

• Act before it's too late

  
  

Just hang up.

Then contact your financial institution directly using the phone number on the back of your debit or credit card or from its official website. Never trust a phone number provided by the caller.

Cybercrime is one of the fastest-growing financial threats facing consumers today, and these scams can happen to anyone. A small investment in Personal Cyber Fraud Protection can provide valuable peace of mind—and, in cases like this, can mean the difference between a devastating financial loss and a covered insurance claim.

If you're unsure whether your homeowners policy includes Cyber Fraud Protection, contact Knight Insurance Group. We'd be happy to review your coverage.