EAST LANSING, Mich.—Millennials are being targeted by a new scam in which criminals steal money from accounts via the victim’s ATM card.
Called “cracking cards," the ruse fools young adults into naively handing over ATM PIN numbers as part of an easy-money scheme. The criminals typically contact the young adult via social media, ask if they can use the person’s account to cash a check, and then promise the victim a cut of the money they deposit.
However, the fraudster deposits only fake checks and then quickly drains the victim’s account.
One CU, the $2.9-billion Michigan State University FCU has started a campaign to raise awareness of the growing crime.
April Clobes, president and CEO of MSU FCU, told the Detroit Free Press, "What's really heartbreaking is mostly they are preying on people who truly need funds—which is why they fall for it.”
Last fall, Clobes told the newspaper, one student thought she was going to be eligible for some sort of scholarship money. But as part of that deal, the con artists convinced her to drive with them to Chicago and give up her ATM card. She was abandoned in Chicago and left without her debit card, Clobes said.
"It's very serious," said Clobes noting the average theft is $2,500.
The con artists are recruiting college students, single parents and even in some cases newly enlisted military, too the Detroit Free Press reported.