Newspapers Say 'Y2K Scam' Is Real
| Update: 03/18/99 - Does this Net rumor have a basis in fact, or is it just an urban legend? Banks, banking associations and wire services began reporting it as a true story last week, but those same sources are now questioning whether any such incidents have actually occurred.
On March 18, the Orange County Register reported: Warnings about the scam are widely circulated on the Internet, in news releases and in police e-mails. But no one tracking the reports – not the American Bankers Association, not the Federal Reserve, not the FBI – can cite a case involving an identifiable person. It's beginning to look more and more as if that's the case. As of now, the factual status of the rumor remains undetermined. |
As posted on 03/14/99:
A first-person story currently traversing the Internet warns of a "Y2K bank scam" which is real, according to news reports in the U.S. and Canada.
Here is a typical email version:
|
Subject: FW: Y2K scam
I got a call from a man this weekend telling me he represented my bank and that they were having difficulty meeting requirements to be computer ready for Y2K. He said all bank customers would need to transfer their accounts to a bond account specially designed to protect our money until the bank could fully comply with Y2K requirements. He then said to verify that he was talking to the proper account person I needed to confirm information about myself, my account numbers, and then give verbal authorization to transfer funds to this specially designed account. I don't trust folks who do this kind of thing so I asked him which of the banks I use did he represent. He was not able to do that and hung up at that point. Please pass this info to friends and family because this is a huge scam that is going on all across the country. Some people would be scared to think they would lose all their money (which he said was sure to happen if I didn't do this now) and would supply the information without first checking this out. I notified the phone company of the call - since I have caller ID, I could give them a number but the identifier just said "out of area". It came from a 248 area code which is around Detroit. I'm passing this along so you'd be aware and beware. |
On March 10, news agencies began reporting that consumers should beware of scams fitting the above description.
Y2KNEWSIRE.COM:
As part of its ongoing campaign to promote a safe Y2K rollover, Y2KNEWSWIRE.COM today warned the public about Y2K "bank scams." The scams prey on potential Y2K fears, tricking victims into transferring their money to third-party bank accounts where it will be "safe from disruptions."Of course, the transfer is not to a protected bank fund, but rather to the account of the con artist.
The Toronto Star:
The Canadian Bankers Association (CBA) sent out its first warning to consumers yesterday after a phone scam was reported this week. The CBA said a fraud artist, posing as a bank representative, is making calls and telling customers the bank is having trouble getting computer systems prepared for Year 2000. Customers are asked to transfer money into specially designed bond accounts until systems become Y2K-ready.Finally, the person asks for account information to "verify that he is talking to the proper person."
It's impossible to determine at this point whether the email itself is authentic; it's also unclear how much of a role the anonymous tale had in spurring the official scam alerts. In a March 14 Knight Ridder wire story about how banks across North America are taking the Internet rumor seriously, Bank of America spokesman Julie Davis was quoted as saying the email wasn't her only source of information. "I have certainly gotten word from various sources and banks around the country that this is happening," she said.
Similar scams have been reported involving attempts to trick victims into revealing credit card information. These are updated versions of very old con games which usually target the elderly.
Not falling victim to such scams is basically a matter of common sense: don't give out bank or credit information to anyone OR conduct large financial transactions over the phone. Immediately report any unsolicited phone offers to "help" you protect your assets from "Y2K problems" to your bank.
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