Card-Cracking

Avoid this scam: Card-Cracking

SCENARIO 1 - In card-cracking scams, young adults (primarily students, newly-enlisted military, or single parents) are recruited to facilitate fraud against the bank. The perpetrators typically target consumers via social media and convince them to share their checking account information in exchange for some type of a kickback – usually in the form of a counterfeit check remotely deposited into their account of which, the consumer is allowed to keep a portion of the funds. However, the fraudster often removes all of the funds before the bank determines that the check is counterfeit.  Fraudsters may also convince the student to provide them with their debit card, along with their PIN. The consumer is instructed to report the card as lost or stolen, thereby receiving protection via Reg E, while the fraudster withdraws the funds.

SCENARIO 2 - A student opens a new account at a bank, generally with a low dollar amount ($10-$25). The student then provides their ATM card and PIN number to a third party. The third party then deposits stolen or counterfeit checks into the account and makes withdrawals prior to the checks being returned as bogus. The student is instructed to tell bank officials they lost their debit card. If questioned about how the fraudster obtained the PIN, the student is instructed to inform bank officials they wrote the PIN on a piece of tape and attached it to the back of the card.

SCENARIO 3 - Fraudsters create fake job postings on social media and job sites, promising quick money for simple tasks. New hires are asked to provide their bank information, often under the guise of direct deposit setup. Once the information is shared, scammers deposit fake checks or make unauthorized transfers, leaving account holders liable for the fraud.

SCENARIO 4 - Using mobile payment apps, scammers may convince victims to send small amounts to verify an account. Over time, they increase the transaction amounts, sometimes draining accounts through unauthorized transactions linked to a linked debit card or bank account.

Cracking-Cards Recruitment

Recruiters often resort to social media to recruit students for Cracking-Cards with the promise of quick money. They may post fake testimonials of "success" or fabricate stories about high-paying opportunities. Don’t be a party to a criminal scheme. It’s illegal to defraud a bank. In recent investigations, criminal charges have been brought against students for conspiracy and larceny.

Who is Being Recruited?

• Young adults, ages 16 to 30, are recruited, enticed, tricked, bribed, or voluntarily agree to give up their debit card and PIN.
• Many of the young accountholders are high school/college students, as well as those in financial distress or seeking part-time work.
• The majority of individuals who are involved in carrying out this scheme are targeting accounts that have been established for a period of 6 months or longer.
• Accountholders generally do not have large balances in their account.
• Most accountholders believe they will be paid for assisting their “friend” in this scheme. Some account holders may receive a small amount of money, but mostly never get paid.

PREVENTION TIPS

• Never share your debit card or PIN with anyone.
• Never deposit a check or money order from an unknown source into your account.
• Verify job offers carefully; avoid sharing personal banking details for direct deposit until confirming legitimacy.
• Be cautious of anyone promising fast cash or encouraging you to deposit checks and return part of the funds.
• Monitor your account regularly for unusual activity and report any suspicious transactions to your bank immediately.
• Don’t be a party to a criminal scheme.