Your phone rings. It’s a representative from your bank, and they’re that warning your account has been compromised.
You’re smart, so you immediately suspect it’s a scam. But the person on the other end of the line reads off your Social Security number and account info.
Only your bank could know that, right? Some 300,000 people in the US thought the same last year.
People lost their life savings; one Virginia woman had a whopping $700,000 wired out of her Wells Fargo account, and another in Los Angeles lost $100,000 in minutes.
Bank scams used to be a niche operation. Now, anyone can buy the tools to con you for a few bucks on the Dark Web.
There are even guides to make a phone number look like it’s from your bank, including phony customer service reps to answer all your questions.
Pro scammers rely on social engineering, too. That’s the fancy name for mind games to gain your trust. The folks are experts at exploiting fear, urgency and trust.
When someone says your account is at risk, your brain shifts into panic mode, making it harder to think critically.
Bank scams are skyrocketing in the US. People lost their life savings; one Virginia woman had a whopping $700,000 wired out of her Wells Fargo account, and another in Los Angeles lost $100,000 in minutes
These fraudsters are skilled at creating scenarios that seem believable, like referencing recent transactions or sharing bits of accurate personal information.
They also use pressure tactics, insisting you act immediately to ‘save’ your money.
Video calls are another common method of distraction and pressure. Seeing a face makes you more trusting.
A nasty bonus: If they keep you occupied, you’re more likely to ignore the security alerts warning you to stop.
The best thing you can do is pause. Take a moment to evaluate the situation before reacting. More on that below.
The big banks lost interest
Last year, banks reimbursed scam victims at pitiful rates.
JPMorgan Chase reimbursed two percent of transactions disputed as scams, while Wells Fargo reimbursed four percent of scam claims.
Bank of America, meanwhile, reimbursed 24 percent of its scam dispute transactions.
Federal law requires banks to reimburse you only under certain circumstances, like if someone steals your phone and accesses your account.
But if you’re the one to sign a wire form or agree to an online transfer and you find out it’s a scam, you’re screwed.
Criminals know that, of course, and that’s exactly how they carry out these attacks.
Keep your money safe
None of the folks who lost it all would have guessed they’d be victims. Take steps to make sure you’re not one of them.
● Slow down: If a caller claims to be from your bank or asks for your account details, hang up. Call the bank yourself. Do not Google your bank’s number; find it on their official website or the back of your card.
● Beware of transfer scams: Never send money via wire transfer, crypto or gift cards in response to unsolicited calls or emails. Your bank or the government will never ask you to transfer funds to a ‘safe’ account.
● Don’t follow links: If you’re told to visit a website, download an app or click a link, it’s a phishing site or malware installation.
● Use a virtual phone number: I bet your real one has been leaked in a couple of data breaches this year. Use a virtual number tied to your finances scammers don’t know.
● Review your transaction history often: The sooner you catch fraudulent activity, the better your chances of resolving it.
● Set up alerts: In your banking app, you can turn on alerts for transactions over a certain amount or made in a foreign country, as well as notifications about suspicious activity like attempted logins from a new browser.Some banks let you set transaction limits on withdrawals or purchases, too.
● Educate yourself and loved ones: Keep up to date with scammers’ tricks so you can spot them. Share these tips with family and friends, especially older adults. Awareness is the best defense.
It’s not just bogus calls and emails
Cybercriminals have a host of tricks at their disposal to fool you out of your money and personal info.
Fake banking apps
Scammers create counterfeit versions of popular banking apps, complete with realistic logos and interfaces. You download it thinking it’s the real version. Once you log in, they steal your credentials. Always download apps directly from your bank’s official website or the app store. If there are a suspiciously low number of downloads or reviews, move on.
Phony bank emails with verified logos
AI tools make it a breeze to create convincing emails with verified sender logos and signatures. These emails may even mimic your bank’s official communications. If you’re ever unsure, don’t click. Log in directly through your bank’s website or call the number on the back of your card.
One-time passcode theft
Scammers trick you into sharing a legitimate one-time passcode sent to your phone. Remember, your bank will never ask you for these codes. If you receive one unexpectedly, it may mean someone is trying to access your account.
Social media ‘banking representatives’
Fraudsters posing as bank reps on social media platforms lure victims in with fake customer service help. This often comes after posting a public complaint. Never share account details over social media or direct messages. Banks handle issues through official channels only.
QR code scams
Just because it’s in your bank’s parking lot or near their signage, doesn’t mean it’s real. Scanning random QR codes is just as dangerous as going to a random URL. Don’t do it.
