Chip Card Scam

Chip Card Scam

Physical Card Fraud: Understanding the Chip Card Scam

At Universal 1 Credit Union (U1), your security is always our priority. The FBI recently issued an alert about a new type of physical card fraud that is becoming more common. We want to help you understand how this scam works so you can stay protected.

How the Scam Begins

The scam usually starts with a phone call from someone who claims to work for your financial institution. Scammers often spoof a caller ID so the number looks legitimate. They may say they are calling about suspicious activity on your account and ask you to confirm recent transactions.

To make the call feel real, the scammer may reference your address, account number, or other personal information. The FBI believes criminals are gathering this information from the dark web, where stolen data is frequently sold.

At this point, the call can feel completely authentic. Many people become understandably concerned.

The Fake Courier Trick

Once the scammer has your attention, they claim your card is compromised and must be secured immediately. They say a courier will come to your home to pick up the card.

In many cases, the courier arrives within minutes. Sometimes the scammer keeps you on the phone while the courier arrives to increase the sense of urgency.

The courier cuts your card in half in front of you. This is meant to reassure you. However, they keep the chip intact. With the chip and your PIN, criminals can access your account or make fraudulent purchases.

Some scammers use the stolen chip right away. Others wait months before using it so the victim has time to let their guard down.

How to Protect Yourself

U1 will never:

• Send a courier to your home
• Ask for your PIN
• Request your physical card
• Pressure you to act immediately

If you receive a call that feels suspicious, hang up and call us directly using the number on the back of your card or on our website.

What To Do If You Are Targeted

If you believe you have been contacted by a scammer:

• Hang up right away
• Do not share personal information
• Do not hand over your card
• Call U1 immediately to report the incident
• Report the scam to the FBI Internet Crime Complaint Center (IC3)

How To Stay Protected

Below are several proactive steps that can help keep your information and your accounts safe.

Be Proactive

Chip card scams often begin with a call about fraudulent transactions. Monitoring your accounts regularly helps you stay one step ahead. Setting up alerts and notifications allows you to see charges as they happen. You can set up account alerts in Online Banking at https://www.u1cu.org/online so you can contact your financial institution right away if something looks off instead of waiting for a call.

When you already know your accounts are being monitored, you are less likely to fall for a scammer who claims there is a problem.

DO NOT Answer Unknown Calls

If the caller is not in your contact list, it is safer not to pick up. Scammers rely on catching you off guard. Ignoring unknown numbers removes their opportunity to pressure you.

Call Your Financial Institution Directly

If you do answer a call that claims to be from your bank, remember that legitimate institutions follow strict procedures. In real fraud cases, you may receive a text alert or a call, but a legitimate representative will always instruct you to hang up and call the official fraud hotline.

A real financial institution will never ask for personal information over an unsolicited call. They will never send someone to your home to collect your card. If you receive a call for any reason, hang up and call the number printed on the back of your card or at the top of your statement.

Protect Your Card & Dispose Of It Properly

Store your card in a secure place and never hand it to a stranger. When you need to dispose of an expired or replaced card, make sure the chip is destroyed. A shredder or scissors will work. Some financial institutions also offer card recycling options inside the branch.

Safeguard Your PIN

Chip card scams often require both the chip and the PIN. Protecting your PIN is essential. Avoid using numbers tied to personal information such as your birth date or phone number. Choose a sequence that is not easily guessed. Changing your PIN from time to time adds another layer of protection.

Staying Informed Keeps You Safe

Fraud tactics continue to evolve, but staying informed is one of the strongest defenses you can have. U1 will continue to share updates and resources to help you stay safe and confident in your financial life.

If you have any questions or concerns about emails, websites or unsolicited calls related to Universal 1, please email our Compliance department at compliance@u1cu.org. You can also call our eServices representatives at 800-543-5000 option 0 or 937-431-3100 option 0. 

If you suspect you are a victim of identity theft or your information was exposed in a data breach, visit The Federal Trade Commission's ID theft recovery plan webpage to take action. 

View additional fraud alerts here.

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