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Social media isn’t known for its authenticity. Between the filters, fake backgrounds, and passing trends, social media is more of an imitation of reality. Unfortunately, it is also an online “playground” for fraudulent activity.
Most recently, bad actors have started to spread malware through comments on LinkedIn. Like many other acts of fraud, this one is convincing and appears to be legitimate. For this particular instance, the bad actors leave a comment on a person’s LinkedIn post saying that the user has “engaged in activities that are not in compliance with the platform and that their account has been temporarily restricted until they visit the specified link in the comment.
The scam is made all the more real by including the LinkedIn logo and using wording that sounds very similar to something that might have been actually posted by LinkedIn. The faux validity convinces the potential victim to think that the post is legitimate and more times than not, the potential victim clicks the link. Once the potential victim has clicked the link, they are redirected to a webpage also containing the LinkedIn logo and company slogan with language that is designed to seem official.
Unfortunately for the potential victim, once the link has been accessed, the bad actors are now able to spread malware to the victim’s computer and, if that computer is networked in, potentially the entire network.
While scams appearing on social media aren’t a new phenomenon, the level of reality that each scam is now able to portray can be worrisome. More and more scams are losing the “hallmarks” that would normally indicate something is a scam, such as misspellings and poor grammar. Further, while Artificial Intelligence (AI) can prove to be very useful, it can also, unfortunately, be used to effectuate fraudulent activity.
In addition to LinkedIn, sites like Instagram and Facebook have been known to contain faked advertisements that entice the potential victim to sign up for an account that is far too good to be true. For example, an advertisement for a deposit account with an APY of 15 percent or a loan with 0 percent interest for the entire term. The unsuspecting victim is expecting to apply or become eligible for a financial product that doesn’t actually exist and, more often than not, as part of the process, gives their banking information out online voluntarily.
The difficult wrinkle here is that social media platforms often provide a low-cost arena for credit unions to advertise. So, how can a credit union do that while working to prevent their members and potential members from becoming victims?
First, the credit union can link all advertisements directly to their home page. While it’s important for the credit union to be able to offer their products to members and potential members, it’s also important to be mindful of online practices. By choosing to link to the homepage, a credit union can give members access to their products without also reinforcing the idea that its “standard procedure” to give out online banking information to access financial products.
Next, educating a credit union’s membership, not just about online scams, but the advertising practices of your credit union can be helpful. While credit unions frequently and effectively engage in member education, ensuring that your membership is familiar with the credit union’s specific online practices can be an effective measure of preventing members and potential members from becoming victims.
Have questions or want to know more? Contact ViClarity’s compliance services team at compliancesupport@viclarityus.com.
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For more information, email Heather Line.
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