Watch Out for These Devious Banking Scams

You probably know not to send money to a Nigerian prince online, but scammers have plenty of other tricks up their sleeves, and not all of them are easy to spot.

Last year alone, consumers lost $10 billion to fraud. Federal Trade CommissionYou can avoid joining their ranks by knowing how scammers work and taking simple precautions to keep your information safe. Read on to learn how to spot common banking scams and protect your money.

Top 10 common bank scams

Knowing scammers’ favorite tactics can help you stay one step ahead of them.

Check cashing fraud

You will receive a check requesting that you deposit it and then return a portion of it to the sender. The check may be processed, but by the time your bank realizes it’s fake, the real money has already been transferred from your bank account to the scammer. If a potential “employer,” secret shopping company, or other source asks you to wire money from a check you received, tear up the check and ignore the request.

Check Laundering Scams

Criminals may steal envelopes containing checks from the mail and use chemicals to wash the checks and change the payee or amount. To protect yourself from this scam, use checks with security features, never leave check fields blank, never leave mail in your mailbox, and use black gel ink on your checks that is difficult to wash off.

Phishing scams

In phishing scams, you receive text messages or emails from what appears to be a legitimate source, such as a bank or utility company, asking you to update your information. Sharing your details allows criminals to take over your account. Never click on links in unsolicited messages. Call your bank’s official customer service line to verify the request.

Auto-withdrawal scam

You’ll receive a surprise message or phone call telling you that you’ve won a prize. To get your money, all you need to do is provide your bank account number and routing number. Once the scammers have this, they can set up regular direct deductions, which can do far more damage than the disappointment of realizing you don’t have a prize.

Advance payment fraud

The scams involve people paying an upfront fee and promising money or services in return. Some of these scams are easy to spot, like the classic “Nigerian prince” scam, but some are more sophisticated.

For example, if you’re struggling with debt, you might be tempted by companies that say they can help you pay off your debts for a fee. Don’t let scammers take advantage of your distress. There are plenty of legitimate ways to get out of credit card debt, including contacting a reputable, non-profit debt counseling service.

Fake banking websites and apps

Scammers can easily create fake websites or apps that look like real banks to trick you into providing personal information or sending money. Before you click on a link, make sure the URL actually belongs to a bank or credit union. Bank Search It’s easy to check: When installing a mobile banking app on your phone or tablet, make sure you download it directly from the Apple Store or Google Play Store.

Government fraud

Government agencies, such as the IRS and the Social Security Administration, typically only communicate through mail. If you receive a phone call or text message from someone claiming to be from a government agency, do not respond or provide any information, even if the communication seems genuine at first. Scammers can easily disguise legitimate phone numbers.

Recruitment scams

Legitimate job ads will not ask for your bank account information or ask you to pay for goods or services to start the job. Before applying for a job, check the company name with the Better Business Bureau to avoid being scammed. Falling into a trap.

Charity fraud

Scammers will try to take advantage of your kindness, especially during disasters like earthquakes, hurricanes, etc. Instead of responding to unsolicited requests for donations, do your research and find legitimate local organizations to ensure your money is actually going to a purpose.

Identity Theft

Identity theft comes in many forms, from scammers using your debit card information to make purchases or using your Social Security number to open a bank account in your name. The best way to protect yourself against identity theft is to regularly check your credit report and account statements, and contact your bank right away if you see anything suspicious. You can also sign up for identity theft protection services for added peace of mind.

How to avoid bank account fraud

Banking scams are sophisticated, but there are some simple steps you can take to avoid them.

• Know the warning signs. Be wary of unsolicited contact, requests that create a false sense of urgency, and offers that seem too good to be true. If it’s in doubt, it probably is.
• Do not disclose any personal information. Keep your personal information secret, from account numbers to login credentials, including shredding any documents containing sensitive information before discarding them.
• Create a strong password. Create a unique password using a combination of letters, numbers, and special characters. Avoid personally identifiable information like your address or date of birth. And don’t use the same password for multiple sites or apps. A password manager can help you keep track of your logins across platforms.
• Enable multi-factor authentication. While fraudsters may be able to crack your password, it is much harder to replicate your fingerprint or face, and multi-factor authentication requires these biometrics to access your bank account.
• Avoid public Wi-Fi networks. Don’t do online or mobile banking over unsecured Wi-Fi networks – only use secure home networks.
• Monitor your bank statements and credit reports. Regularly review your account transaction history and pull credit reports throughout the year to spot any suspicious activity.
• Get your ChexSystems report. If you are worried that someone has opened a bank account in your name, ChexSystems Disclosure Report and Consumer Score Report Find out if there are any negative connotations associated with your name.
• Use an identity theft protection service. You’ll have to pay for the best identity theft protection and monitoring services, but it’s well worth it if it helps you sleep better at night.

What to do if you are a victim of bank fraud

If you think you may be the victim of bank fraud, follow these tips to minimize your losses:

• Please contact your bank. Contact your bank or credit union right away to minimize your losses. In most cases, reporting it right away can help mitigate any potential liability. But don’t just stop at one account. Look at all your other financial products, including credit cards, to make sure those accounts aren’t at risk, too.
• Please file a complaint. Contact the FTC Log your complaint and receive a recovery plan.
• Please report this to the police. If a scammer thousands of miles away has your account number, local police can’t do much, but a police report can prove that a fraud occurred and that you tried to stop it. For example, if someone uses your personal or financial information to launder money, a police report can help prove that you weren’t involved.
• Please change your password. Update passwords for all financial accounts and consider changing passwords for other services, such as email and social media, as well.
• Set up fraud and security alerts. In addition to closely monitoring your credit report, consider setting up fraud alerts with all three credit bureaus. Equifax, Experian and Trans Union — As an added safety measure, it’s also wise to set up security alerts. Checks Systemswill automatically notify you of any attempt to open a new account in your name.