Huntsville experts share 6 common types of fraud + how to avoid it

A man holds a phone and points to the screen at a credit union branch — Don’t click links in texts you do not trust and track your accounts frequently. (Alivia Nguyen / Hville Blast)

If you’ve ever gotten a “Card Declined” message at the checkout, you know the feeling as you think: But there’s money in my account. I mean, there is, right?

First thoughts aren’t usually about fraud. Oftentimes, it’s the card reader that needs another pass. Other times, maybe it’s your own mistake for not keeping up with your balance.

And then there’s the worst, when you pull up your app to see charges you did not make.

Card fraud is the most common type of financial fraud consumers face these days, and that includes us in Huntsville, says Jonathan Kirby, Redstone Federal Credit Union Vice President of Security and Investigations.

Kirby has worked for Redstone to combat financial fraud for 25 of the 36 years he’s been with the credit union. Recently, we talked with him about the six most common types of fraud he sees locally and what we can all do to protect our information and money.

Common types of fraud

1. Credit card fraud

A woman with a skeptical look while pointing at a computer screen — Work with your credit union or bank to activate debit and credit card features to protect your account. (Alivia Nguyen / Hville Blast)

Problem: With card fraud, BIN attacks are common, Kirby says. Fraudsters use powerful computer programs to “guess” valid card numbers based on a bank’s identification sequence (BIN). Once they find a match, they use it.
What you can do: Use your card’s control features. Turn off e-commerce if you rarely shop online, set spending limits and temporarily disable your card when not in use. (None require closing your account.)

Learn more about how card management and setting up card controls works at Redstone.

2. Check fraud

Problem: Thieves steal checks from mailboxes and alter them to redirect payments or order new checks using your account number.
What you can do: Go digital, making payments and deposits electronically to keep paper checks out of the mail.

3. ID theft

A credit union teller checks a member's ID — Report lost or stolen IDs to your credit union or bank so they can monitor your account for suspicious activity. (Alivia Nguyen / Hville Blast)

Problem: If your ID or bag is lost or stolen, it can give criminals enough information to impersonate you, especially if they find checks or other personal documents with it.
What you can do: If your ID is stolen, immediately notify your financial institution to flag your account for suspicious activity. Then, replace your ID. Redstone staff are trained to verify the most recently issued IDs for this reason, Kirby says.

4. Phishing

A woman with a skeptical look while holding phone to ear — Be vigilant about verifying contact information with suspicious calls and other communications. (Alivia Nguyen / Hville Blast)

Problem: Scammers impersonate trusted companies or authorities through emails, texts or calls to trick you into giving up personal data. For example, if you get a text or call from “Amazon” asking you to verify a purchase or claim a refund, it’s very likely a scam, Kirby says. Some are even using AI-generated voice cloning to mimic friends and family.

“Fraudsters today are willing to put a lot of effort into constructing the fraud in such a way that it will take longer to detect.”
_{Jonathan Kirby, Redstone Federal Credit Union Vice President of Security and Investigations}

What you can do: Trust your instincts. Be skeptical of urgent messages or unfamiliar numbers. Do not provide any personal information until you have verified the company’s legitimacy—and call your financial institution for help. Don’t be rushed, Kirby says, adding that fraudsters typically imply a sense of urgency to pressure people to give up information.

5. Ransomware attacks

A woman holding a phone while appearing shocked to see a fraud phishing text — Check questionable messages, and don’t click the links! (Alivia Nguyen / Hville Blast)

Problem: Clicking a fake link can install malicious software, allowing hackers to lock your files or steal your data. Messages often trick users with alerts that seem real, like Amazon purchase notifications.
What you can do: Avoid clicking suspicious links or attachments. Contact your credit union or bank to check any questionable messages.

6. Closing attorney fraud

Problem: During real estate transactions, homebuyers can lose down payments when scammers pose as legitimate closing attorneys to intercept wire transfers.
What you can do: Be very suspicious of any changes to previously provided wiring instructions. Don’t rush to respond to calls, texts or emails about wiring instructions, and always verify their contact information through trusted sources.

Fraud-fighting + reporting resources

Two men and a woman in business clothing at a conference table — The Redstone Federal Credit Union team heads off fraud proactively and is on standby to help if it happens. (Alivia Nguyen / Hville Blast)

Kirby recommends trusted resources like ftc.gov and ic3.gov for reporting fraud and identity theft.

“I have been told by FBI agents that they run analytics on submitted cases, and if they see some commonality, then they can combine those and put more resources toward it.

“We try to fight and stop as much fraud as possible,” Kirby says. “When it does happen, it’s really nice to have a local financial institution that you can walk into. Our investigators are here, and we work with law enforcement very closely to get these folks off the street.”

Learn more about how Redstone Federal Credit Union protects its members.

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