by Mark S. Brantley, Esq. – CUEvangelist
It’s no secret this is my favorite time of year and likely yours as well. For me however, I’m looking forward to the holiday classics “It’s a Wonderful Life”, “Miracle on 34th Street”, and “ A Christmas Carol” to name a few. Additionally, every year I wait with great anticipation for the Twilight Zone (TZ) marathon that spans a couple of days beginning on New Year’s Eve. Some time ago, I authored a CUInsight article, “To Serve Man” that was a take on the TZ episode of alien giants called Kanabits who offered the inhabitants of earth peace and prosperity as part of an exchange program. A book the Kanabits brought with them titled, “To Serve Man” was initially misinterpreted by earth’s scientists because of their misunderstanding of the alien language. Later, the code was deciphered by a woman scientist who told her colleague it was a ‘cook book’ to serve human beings as meals and not to render service to mankind. The Kanabits like some financial institutions and payday lenders when their intentions are revealed, they turn out to be frauds. They promise you the world, but in the end, people of modest means are treated as prey by their predatory schemes. Credit unions on the other hand are truly about service! As the movement’s motto suggests, credit unions are “Not for profit, not for charity, but service.”
Aside from the TZ episode “To Serve Man” another favorite of mine is “The Night of the Meek” starring Art Carney (of Ed Norton – Honeymooners fame) as Santa Claus. In that story, Carney played Henry Corwin a Santa Claus actor who was a drunk, disheveled Kris Kringle until one day he found a burlap sack in an alley among garbage and began to miraculously hand out gifts to all who asked their holiday hearts’ desire. Despite being accused of being an alcoholic and a thief, he continued distributing the gifts until the bag became empty at midnight. As Corwin headed back to the alley where he found the bag, he’s greeted by an elf. He then realized that he was really Santa Claus and departed with the elf on his sleigh back to the North Pole.
Credit unions too are often attacked for their not-for-profit, tax exempt status and story. We are often accused by other institutions of mission fraud. Just recently, bankers criticized a credit union’s stadium naming rights as ‘not serving the poor.’ However, little to no attention is given to the millions of dollars credit unions return to its members in special dividends, lower interest rates on loans, and higher interest on savings. Neither do banks mention the countless grants provided to community non-profits, scholarships awarded to students, or the voluminous number of hours employees spend volunteering. Rather than try to criticize or dispel the credit union philosophy of people helping people as myth, the time of banks would be far better spent focusing on the true frauds that are coming to town this holiday season.
During this time of year, several types of fraud become more prevalent largely due to increased shopping and charitable donations. Some common types of fraud include:
- Online Shopping Scams: Fake websites or online advertisements for popular products at low prices are created to lure shoppers. Credit card information is often stolen or the items ordered are never delivered.
- Phishing Scams: Emails or text messages that appear to be from legitimate stores or organizations that ask for personal or financial information like account numbers or social security numbers. These are often designed to steal the identities or to gain access to financial accounts.
- Charity Scams: Fake charities are setup or scammers impersonate real ones to solicit donations. They exploit the season of giving to obtain money or personal details and will target anyone especially the elderly.
- Delivery Scams: Fake notifications about parcel deliveries, which may ask for payment to release a package or for personal information are common. These scams play on the high volume of online shopping and shipping during the holidays.
- Gift Card Scams: Scammers will say its urgent for you to buy a gift card and will ask for the card number and PIN code to extract the money you loaded from the card.
- Travel Scams: With many people traveling, there are scams related to fake travel deals, holiday accommodations, or rental car scams.
- Social Media Scams: Scammers seek victims on social media platforms and will post fake advertisements, contests, or giveaways that are actually phishing attempts or ways to spread malware.
During the holiday season, shoppers can be very vulnerable in their gift giving endeavors. Therefore, It’s important to be vigilant by verifying the authenticity of websites and charities and be cautious with personal and financial information. Unfortunately, predators are on the lookout for prey. So, you better watch out, I’m telling you why – “Santa Frauds” are coming to town.
Mark S. Brantley, Esq. is currently known as the CUEvangelist – “Spreading the Good News About CUs!” Mark is also an Asst. Director of Operations at Arizona State University and was the former vice-chairman of the AACUC, former board member of CUNA, and former Chairman of the Municipal Credit Union. He has written numerous articles and white papers on credit union advocacy, legislative, and regulatory matters.