Credit unions across the country are seeing a rise in scams involving counterfeit U.S. Savings Bonds. In these cases, individuals, both new and existing members, present fraudulent paper savings bonds for redemption. Unfortunately, many of these transactions appear legitimate at first, and the funds are often withdrawn before the credit union is notified that the bonds are counterfeit. Reported losses have reached six figures in some instances.
In many cases, the scam begins when a new member opens an account and immediately presents savings bonds to cash. The individual may make multiple withdrawals over a short period before the fraudulent nature of the bonds is discovered. Even long-time members have been involved in similar schemes, often providing convincing stories about where the bonds came from.
It’s important to note that while the Treasury Direct Tool can help calculate the value of a bond, it does not verify ownership, guarantee serial numbers, or confirm whether a bond is eligible to be cashed.
To protect members and reduce fraud losses, many credit unions are now adopting stricter policies, some no longer redeeming U.S. Savings Bonds altogether. Members are encouraged to redeem savings bonds directly through the U.S. Treasury online for security and peace of mind.
For more information about protecting yourself from scams and fraud, visit our Fraud Prevention page or contact our team.
