Campus Police warn students of bank scam

Campus Police are warning students and others not to fall prey to a bank scam that has been afflicting campus.

Even the so-called "innocent victims" of the scam, whose debit cards are used by others to rack up substantial charges, can face criminal and civil penalties, police warn.

The "victims" are subject to prosecution because, in this scam, they willingly surrender their debit card and PIN number to criminals then knowingly make a false report of fraudulent activity on the card a few days later, leaving the banks liable for thousands of dollars in withdrawals and purchases.

The scam works like this: A "victim" is approached by someone who asks if they want to make some money. Those who agree hand over their debit card and PIN number and in return receive enough cash to cover the balance in their account, plus a profit. Some also get a cut of the ill-gotten gains derived from the use of the card.

With the card in hand, the criminal makes a fraudulent deposit to the "victim's" account at an ATM, ostensibly depositing a check for a large amount, but not doing so. When the deposit registers in the account they quickly set about drawing down the amount, making withdrawals and purchases.

A few days later the "victim" calls his or her bank and reports fraudulent activity on the card. The bank cancels the card, but is now liable for the amount of the withdrawals and purchases. In some instances, the "victim" might even file a police report claiming that the card was stolen.

NIU Police are investigating up to 10 such cases a month and in virtually every instance have been able to link the "victim" to the crime. Dozens of individuals have been convicted as a result of those investigations.

Those who are convicted can face up to six years in prison and fines of up to $25,000, plus the cost of reimbursing the bank. They might also lose the right to open a checking account of any kind for up to seven years, severely hampering their ability to purchase cars or homes, or get loans of any kind.

Northern Illinois University Police urge all individuals approached about this scam to report those involved immediately and say that under no circumstances should anyone take any part in such illegal acts.

Investigators at the Northern Illinois University Police Department can be contacted at 815-753-1212. Those wishing to remain anonymous can call the Tipsline at 815-753-TIPS.