ScamsNOW!
The SCARS Institute Magazine about Scam Victims-Survivors, Scams, Fraud & Cybercrime
U.S. FedNOW Is Launched
By SCARS Editorial Team – Society of Citizens Against Relationship Scams Inc.
U.S. Federal Reserve Launches Long-Awaited FedNOW Instant Payments Service, Modernizing System
The United States Federal Reserve announces that its new system for instant payments, the FedNow® Service, is now live
The Federal Reserve on Thursday announced that its new system for instant payments, the FedNow® Service, is now live. Banks and credit unions of all sizes can sign up and use this tool to instantly transfer money for their customers, any time of the day, on any day of the year.
“The Federal Reserve built the FedNow Service to help make everyday payments over the coming years faster and more convenient,” said Federal Reserve Chair Jerome H. Powell. “Over time, as more banks choose to use this new tool, the benefits to individuals and businesses will include enabling a person to immediately receive a paycheck, or a company to instantly access funds when an invoice is paid.”
To start, 35 early-adopting banks and credit unions, as well as the U.S. Department of the Treasury’s Bureau of the Fiscal Service, are ready with instant payments capabilities via the FedNow Service. In addition, 16 service providers are ready to support payment processing for banks and credit unions.
When fully available, instant payments will provide substantial benefits for consumers and businesses, such as when rapid access to funds is useful, or when just-in-time payments help manage cash flows in bank accounts. For example, individuals can instantly receive their paychecks and use them the same day, and small businesses can more efficiently manage cash flows without processing delays. Over the coming years, customers of banks and credit unions that sign up for the service should be able to use their financial institution’s mobile app, website, and other interfaces to send instant payments quickly and securely.
As an interbank payment system, the FedNow Service operates alongside other longstanding Federal Reserve payment services such as Fedwire and FedACH.
And Now The Bad News!
The Federal Reserve FedNow system is a new instant payment service that will allow banks to send and receive payments instantly. This is a major convenience for consumers and businesses, but it also creates new opportunities for scammers.
Here are some ways that scammers could take advantage of the FedNow system:
- Phishing scams. Scammers could send emails or text messages that appear to be from a legitimate bank, claiming that the recipient has received a payment through FedNow. The email or text message may contain a link that, when clicked, will take the recipient to a fake website that looks like the bank’s website. Once the recipient enters their banking information on the fake website, the scammer will steal it.
- Spoofing. Scammers could spoof the phone number or email address of a legitimate bank in order to make it look like they are contacting the recipient from the bank. Once the recipient answers the phone or clicks on the link in the email, the scammer will try to trick them into giving up their personal information.
- Malware. Scammers could create malware that, when installed on a victim’s computer, will steal their banking information. This malware could be spread through phishing emails, fake websites, or other means.
Here are some specific ways that scammers could use the FedNow system:
- They could send fake invoices or payments. Scammers could send emails or text messages that appear to be from a legitimate business, claiming that the recipient owes them money or that they have received a payment. The email or text message may contain a link that, when clicked, will take the recipient to a fake website that looks like the business’s website. Once the recipient enters their banking information on the fake website, the scammer will steal it.
- They could create fake websites that look like legitimate bank websites. Scammers could create fake websites that look like the websites of legitimate banks. These websites could be used to steal people’s banking information or to trick people into making fraudulent transfers.
- They could use the FedNow system to make fraudulent transfers. Scammers could use the FedNow system to make fraudulent transfers between bank accounts. This could be done by using stolen banking information or by using malware to take control of someone’s bank account.
It’s important to note that the FedNow system is designed to be secure. However, no payment system is completely immune to fraud. That’s why it’s important to be aware of the risks and to take steps to protect yourself.
Tips To Prevent FedNow Scams
Here are some tips to protect yourself from FedNow scams:
- Be suspicious of any email or text message that asks for your banking information. Legitimate banks will never ask you to provide your banking information over email or text messages.
- Only use the FedNow system through a legitimate bank or financial institution.
- Never give out your banking information over the phone or in an email.
- Be suspicious of any email or text message that asks you to confirm or update your banking information.
- Keep your computer’s security software up to date.
- Be aware of the signs of a phishing scam.
- Never click on links in emails or text messages from people you don’t know. If you’re not sure if an email or text message is legitimate, go directly to the bank’s website by typing the URL into your browser.
- Keep your computer’s security software up to date. This will help to protect you from malware.
- Be aware of the signs of a phishing scam. These signs include:
- The email or text message is poorly written or contains grammatical errors.
- The email or text message is urgent and asks you to act immediately.
- The email or text message asks you to provide personal information, such as your Social Security number or bank account number.
Note: The Federal Reserve will never contact the public via unsolicited phone calls or emails asking for money or any other type of personal information.
Summary
If you think you’ve been the victim of a FedNow scam, report it to your bank immediately, along with local and Federal law enforcement.
By reporting FedNow scams and abuse, you can help to protect others from becoming victims.
Resources:
- To report financial fraud through the FedNow system, do as you would for regular bank transfers – see reporting.AgainstScams.org
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Important Information for New Scam Victims
Please visit www.ScamVictimsSupport.org – a SCARS Website for New Scam Victims & Sextortion Victims
SCARS Institute now offers a free recovery program at www.SCARSeducation.org
Please visit www.ScamPsychology.org – to more fully understand the psychological concepts involved in scams and scam victim recovery
If you are looking for local trauma counselors, please visit counseling.AgainstScams.org
If you need to speak with someone now, you can dial 988 or find phone numbers for crisis hotlines all around the world here: www.opencounseling.com/suicide-hotlines
Statement About Victim Blaming
Some of our articles discuss various aspects of victims. This is both about better understanding victims (the science of victimology) and their behaviors and psychology. This helps us to educate victims/survivors about why these crimes happened and not to blame themselves, better develop recovery programs, and help victims avoid scams in the future. At times, this may sound like blaming the victim, but it does not blame scam victims; we are simply explaining the hows and whys of the experience victims have.
These articles, about the Psychology of Scams or Victim Psychology – meaning that all humans have psychological or cognitive characteristics in common that can either be exploited or work against us – help us all to understand the unique challenges victims face before, during, and after scams, fraud, or cybercrimes. These sometimes talk about some of the vulnerabilities the scammers exploit. Victims rarely have control of them or are even aware of them, until something like a scam happens, and then they can learn how their mind works and how to overcome these mechanisms.
Articles like these help victims and others understand these processes and how to help prevent them from being exploited again or to help them recover more easily by understanding their post-scam behaviors. Learn more about the Psychology of Scams at www.ScamPsychology.org
SCARS INSTITUTE RESOURCES:
IF YOU HAVE BEEN VICTIMIZED BY A SCAM OR CYBERCRIME
♦ If you are a victim of scams, go to www.ScamVictimsSupport.org for real knowledge and help
♦ Enroll in SCARS Scam Survivor’s School now at www.SCARSeducation.org
♦ To report criminals, visit https://reporting.AgainstScams.org – we will NEVER give your data to money recovery companies like some do!
♦ Follow us and find our podcasts, webinars, and helpful videos on YouTube: https://www.youtube.com/@RomancescamsNowcom
♦ Learn about the Psychology of Scams at www.ScamPsychology.org
♦ Dig deeper into the reality of scams, fraud, and cybercrime at www.ScamsNOW.com and www.RomanceScamsNOW.com
♦ Scam Survivor’s Stories: www.ScamSurvivorStories.org
♦ For Scam Victim Advocates visit www.ScamVictimsAdvocates.org
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Psychology Disclaimer:
All articles about psychology and the human brain on this website are for information & education only
The information provided in this and other SCARS articles are intended for educational and self-help purposes only and should not be construed as a substitute for professional therapy or counseling.
Note about Mindfulness: Mindfulness practices have the potential to create psychological distress for some individuals. Please consult a mental health professional or experienced meditation instructor for guidance should you encounter difficulties.
While any self-help techniques outlined herein may be beneficial for scam victims seeking to recover from their experience and move towards recovery, it is important to consult with a qualified mental health professional before initiating any course of action. Each individual’s experience and needs are unique, and what works for one person may not be suitable for another.
Additionally, any approach may not be appropriate for individuals with certain pre-existing mental health conditions or trauma histories. It is advisable to seek guidance from a licensed therapist or counselor who can provide personalized support, guidance, and treatment tailored to your specific needs.
If you are experiencing significant distress or emotional difficulties related to a scam or other traumatic event, please consult your doctor or mental health provider for appropriate care and support.
Also read our SCARS Institute Statement about Professional Care for Scam Victims – click here
If you are in crisis, feeling desperate, or in despair, please call 988 or your local crisis hotline.
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A Question of Trust
At the SCARS Institute, we invite you to do your own research on the topics we speak about and publish. Our team investigates the subject being discussed, especially when it comes to understanding the scam victims-survivors’ experience. You can do Google searches, but in many cases, you will have to wade through scientific papers and studies. However, remember that biases and perspectives matter and influence the outcome. Regardless, we encourage you to explore these topics as thoroughly as you can for your own awareness.
