North Alabama Educators Credit Union

6 NOT FOR PROFIT, NOT FOR CHARITY, BUT FOR SERVICE NAECU.ORG WHEN ELLEN* ARRIVED at NAECU that summer day, the long-time member's unusual request raised red flags—she wanted to withdraw $10,000 in cash from her credit union account. Although staff members recommended she receive a check instead, Ellen declined and asked to receive cash. NAECU staff members politely inquired about the nature of Ellen's transaction and soon became even more concerned that something questionable was taking place. Ellen said the money was for an investment and would be returned to her account soon, explaining that she was investing with someone she didn't know who was waiting for her in the lobby. Per standard policy, the NAECU associates told Ellen that a 15-minute wait was required for larger transactions. During that time, the person waiting in the lobby le on foot, presumably due to fears that police were en route. Further investigation revealed that there was another individual waiting for Ellen outside. Ellen admitted she didn't know either person. They showed her a "wad of money" and promised her the withdrawal would be used as a money exchange for profit, which is known as the pigeon drop scam (see "How to Spot a Scam"). Thanks to the quick action of NAECU staff, Ellen's story has a happy ending. She deposited the cash back into her account and spoke with police about the attempted fraud. Her savings were protected, and she can now use her story as a cautionary tale to protect others. NAECU RECOMMENDS EXERCISING CAUTION WHEN SPEAKING WITH STRANGERS ABOUT INVESTMENT OPPORTUNITIES, ESPECIALLY IF THEY REQUIRE CASH. IF YOU EVER QUESTION THE LEGITIMACY OF A TRANSACTION, STOP BY AN NAECU BRANCH OR CALL 256.534.2423 TO SPEAK WITH A REPRESENTATIVE. * Name changed to protect privacy THE MORNING OF JULY 17, 2014, UNFOLDED LIKE ANY OTHER DAY AT THE NORTH ALABAMA EDUCATORS CREDIT UNION'S MAIN BRANCH IN HUNTSVILLE. NO ONE COULD HAVE PREDICTED THAT IN A FEW SHORT HOURS, STAFF MEMBERS WOULD BE RACING THE CLOCK TO STOP A FINANCIAL SCAM. FOIL FRAUD, SAFEGUARD FUTURES How to Spot a Scam Understanding fraud and recognizing warning signs are two of the best ways to protect your financial assets. Here's what you need to know about a typical pigeon drop scam. During the scam, two strangers claiming to have found money approach an unsuspecting person. The con artists show the money to their potential victim, and throughout the exchange—which usually involves one member of the pair leaving to supposedly consult with an authority, such as a lawyer, a bank, or the police, about the money—the pair convince their victim that if he or she will make a security payment, they can split the money three ways, allowing everyone to profit. When victims withdraw the necessary money for the exchange, however, they lose their cash. Though the pigeon drop scam commonly occurs face to face, it can also take place over the phone. Beware of suspicious phone calls and never give anyone your personal financial information.

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