Banking Scams: How they work and what to do if you’re a victim
Published October 7, 2024
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Categories:
- Security & Fraud Prevention
Banking scams are becoming increasingly sophisticated, targeting individuals and businesses alike.
According to the FTC’s 2023 consumer report, people reported losing $10 billion to scams in 2023. A $1 billion increase from what was reported in 2022 with imposter scams being the number one type of fraud reported. Understanding how these scams operate and knowing what steps to take if you’ve fallen victim can help protect your finances.
Common banking scams
Scammers can pretend to be you bank or credit union in a number of different ways. They may not always use the same tactics, but the end goal is always to steal your personal information. Here are a couple ways they could do it.
Phishing emails or texts
They’ll send messages that appear to be from your financial institution, often with urgent requests or warnings. Like a false claim that a suspicious charge has been made to your account, for example, and they want you to go to a link to verify the charge. These links may lead to fake websites designed to steal your personal information or viruses to allow hackers full access to your computer.
With Webster First’s complimentary Card Alert Notification Program, we will send a text asking you to confirm or deny the charge with a Yes or No, never a link.
Impersonation
Scammers may call you directly, claiming to be from your bank or credit union. Using caller ID masking, they can even make the call appear to be coming from a legitimate number that you recognize. They’ll often use a sense of urgency to pressure you into providing personal information or making immediate payments. They may call you over and over until you pick up without leaving a voice message.
It’s important to be aware that Webster First would NEVER call you to ask for your online banking password, card numbers, Social Security number, or PIN.
What a scammer might say
- Request Personal Information: Scammers will often ask for your Social Security number, account details, or online banking login credentials.
- Make False Threats: They may threaten to close your account or report you to law enforcement unless you take immediate action.
- Request Payments: Scammers may ask you to wire money or send them prepaid gift cards to resolve a supposed issue with your account. You should never send money to anybody you don’t know without verifying that it’s for a legitimate reason. No financial institution would ever ask for gift card payments.
Webster First’s Vice President of Compliance, Stacy MacIntyre, has firsthand experience with scammers. She says,
“When scammers make phone calls posing as Webster First, information they may already have is the member’s name, phone number, and oftentimes the member’s e-mail address. Much of this information is readily available on social media accounts or through a simple Google search. They will also state that they have the first or last few digits of their debit card number and ask the member to confirm the rest. They are looking to obtain the full card number in order to use it fraudulently.”
What to do if you’ve been scammed
- Contact your bank or credit union immediately. Notify your bank or credit union of the fraudulent activity as soon as possible. They will take necessary actions to stop the fraud like canceling cards, closing accounts, or warning employees so they are aware if the scammer tries to call impersonating you.
- Dispute charges. If you’ve been a victim of credit or debit card fraud, contact your card issuer to dispute the charges. Pay close attention to activity on your account as you’ll typically have a limited time to dispute.
- Report the fraud to local and government agencies. Report the scam on the Federal Trade Commission’s website. FTC fraud reports are shared with more than 2,800 law enforcers across the country.
- Monitor your credit. If a scammer stole your identity, they could try to take out loans or credit cards in your name. This would show up on your credit report. Keep a close eye on your credit report for any further unauthorized activity. Consider temporarily freezing your credit to prevent scammers from opening new accounts in your name. If you’re a cardholder at Webster First, you can enroll in Mastercard’s ID Theft Protection™ program at no cost to you.
By understanding the common banking scams and taking preventative measures, you can significantly reduce your risk of falling victim. Remember, if you suspect a scam, it’s always better to be cautious and report it to your financial institution.