The interest rates on certificates of deposit are ridiculously low right now. The average one-year CD in the U.S. pays a measly 0.24% APR, according to Bankrate.com.
So you might be tempted by an offer for a CD that pays well above the going rate – a staggeringly high 10%, 12%, even 15%.
The scammers who send out this email are hoping you'll be curious enough take the bait and click on the embedded link.
Gerri Walsh a vice president with the Financial Industry Regulatory Authority (FINRA), says that link will take you to a site that looks like it belongs to a legitimate financial institution, but it’s not.
"It's really a fraud site that's designed to harvest your personal information, like a bank account number, a Social Security number or some other critical personal identification,” Walsh said.
FINRA warns to be especially leery of any CD promotions that appear to come from a U.S. financial institution that claims to be working with an international bank.
"If you're seeing an institution that's not in the U.S., that's a big red flag,” Walsh told me.
More Info: High-Yield CDs: Red Flags That Signal a Scam