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Your phone rings. It’s a representative from your bank and they’re warning that your account has been hacked.
You’re smart, so you immediately suspect it’s a scam. But the person on the other end of the line reads out your social security number and account information.
Only your bank can know that, right? About 300,000 people in the US thought the same thing last year.
People lost their savings; one Virginia woman had as much as $700,000 withdrawn from her Wells Fargo account, and another in Los Angeles lost $100,000 in minutes.
Bank fraud used to be a niche operation. Now anyone can buy the tools to scam you for a few dollars on the Dark Web.
There are even guides to make a phone number look like it’s from your bank, including fake customer service representatives to answer all your questions.
Professional scammers also rely on social engineering. That’s the fancy name for brain games to gain your confidence. The humans are experts at exploiting fear, urgency and trust.
When someone says your account is at risk, your brain goes into panic mode, making it harder to think critically.
Bank fraud is increasing explosively in the US. People lost their savings; one Virginia woman had as much as $700,000 withdrawn from her Wells Fargo account, and another in Los Angeles lost $100,000 in minutes
These fraudsters are adept at creating scenarios that appear believable, such as referencing recent transactions or sharing bits of precise personal information.
They also use pressure techniques, insisting that you act immediately to ‘save’ your money.
Video calls are another common method of distraction and pressure. When you see a face, you gain more confidence.
An annoying bonus: If they keep you busy, you’re more likely to ignore the security alerts warning you to stop.
The best thing you can do is take a break. Take a moment to assess the situation before responding. More about that below.
The big banks lost their interest
Last year, banks reimbursed scam victims at pitiful rates.
JPMorgan Chase reimbursed two percent of transactions disputed as fraud, while Wells Fargo reimbursed four percent of fraud claims.
Bank of America, meanwhile, reimbursed 24 percent of its scam dispute transactions.
Federal law requires banks to reimburse you only under certain circumstances, such as if someone steals your phone and gains access to your account.
But if you’re the one signing a wire transfer form or agreeing to an online transfer and you discover 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 people who lost everything could have imagined that they would be victims. Take steps to ensure you are not one of them.
● Delay: If a caller claims to be from your bank or asks for your account information, hang up. Call the bank yourself. Don’t Google your bank’s number; find it on their official website or on the back of your card.
● Beware of Wire Transfer Scams: Never send money via wire transfer, cryptocurrency, or gift cards in response to unsolicited phone calls or emails. Your bank or the government will never ask you to transfer money to a ‘safe’ account.
● Don’t follow links: If you are asked to visit a website, download an app, or click a link, this is a phishing site or malware installation.
● Use a virtual phone number: I bet your real phone number has been leaked in a number of data breaches this year. Use a virtual number linked to your finances that scammers don’t know about.
● Check your transaction history regularly: the sooner you discover fraudulent activity, the better your chances of resolving it.
● Set alerts: In your banking app, you can enable alerts for transactions over a certain amount or made abroad, as well as notifications about suspicious activity such as login attempts from a new browser. Some banks allow you to set transaction limits, including for withdrawals or purchases.
● Inform yourself and your loved ones: Stay informed about 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 multitude of tricks at their disposal to cheat you out of money and personal information.
Fake banking apps
Scammers create fake versions of popular banking apps, complete with realistic logos and interfaces. You download it and think it’s the real version. As soon as 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.
Fake bank emails with verified logos
AI tools make it a breeze to create compelling emails with verified sender logos and signatures. These emails can even mimic official communications from your bank. If you’re not sure, don’t click. Log in directly via your bank’s website or call the number on the back of your card.
One-time theft of access code
Scammers trick you into sharing a legitimate one-time passcode sent to your phone. Please note that your bank will never ask you for these codes. If you receive one unexpectedly, it could mean someone is trying to access your account.
Social media ‘bank representatives’
Fraudsters posing as bank representatives on social media platforms lure victims in with fake customer service. This often happens after posting a public complaint. Never share account information via social media or direct messages. Banks handle problems exclusively through official channels.
QR code scams
Just because it’s in your bank parking lot or near the 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.