Understanding and Preventing Blackmail Scams

BMI Federal Credit Union is committed to educating our members on how to avoid fraudulent schemes. One increasingly prevalent scam is blackmail, a tactic fraudsters use to manipulate and exploit individuals through fear, coercion, and deception.

What is the Law Enforcement Blackmail Scam?

In these scams, criminals pose as law enforcement officers or federal agents, falsely claiming the target is under investigation or faces imminent arrest. They often use alarming language to instill fear, stating the only way to "resolve" the issue is by making an immediate payment. Scammers may:

  1. Claim there is a warrant for the victim's arrest.
  2. Insist on secrecy to avoid public embarrassment.
  3. Direct victims to unconventional payment methods, such as depositing money into a cryptocurrency ATM, cash apps, gift cards, etc.

These fraudulent messages can be highly convincing; often delivered through masked phone calls, text messages, or emails appearing to be from a legitimate government organization.

Key Red Flags to Recognize

  1. Unsolicited Contact: Law enforcement agencies will never randomly contact you to demand money or threaten arrest without prior documentation.
  2. Urgency and Pressure: Scammers rely on high-pressure tactics, demanding immediate action to prevent you from thinking critically or seeking advice.
  3. Unusual Payment Methods: No legitimate authority will require payments through cryptocurrency, gift cards, cash apps, or wire transfers.
  4. Secrecy: Fraudsters often insist you keep the interaction confidential, preventing you from verifying their claims with trusted sources.

Steps to Protect Yourself

  1. Pause and Verify: If contacted by someone claiming to be a law enforcement officer, remain calm and take time to verify their identity. You can directly contact your local police department using their official phone number to confirm the claim.
  2. Do Not Share Personal Information: Avoid providing sensitive information like Social Security numbers, Online Banking credentials, or passwords.
  3. Consult Trusted Advisors: Before making any payments or taking action, discuss the situation with a family member, friend, or BMI Federal Credit Union.
  4. Report Suspicious Activity: If you suspect a scam, report it to local law enforcement and Internet Crime Complaint Center (IC3) at https://complaint.ic3.gov/ and or the Federal Trade Commission (FTC) at www.ftc.gov/complaint.

What to Do If You’re Targeted

If you believe you’ve been targeted by a blackmail scam or have already fallen victim:

  • Contact us at 614.707.4000 immediately to freeze accounts and prevent unauthorized transactions.
  • File a report with your local police department.
  • Report the incident to the FTC and the FBI’s Internet Crime Complaint Center (IC3) at www.ic3.gov.
  • Document all interactions, including phone numbers, emails, and any instructions given by the scammer.

Stay vigilant, stay informed, and remember—no legitimate law enforcement agency will demand money or use threats to coerce payment. Let us help you stop fraud in its tracks!

Like what you see? Sign up to receive the free CreditLines newsletter.

(December 2024)