What are the top scams floating around out there? How can consumers be smart and avoid being scammed? What steps should you take if you think you've been targeted? In this blog, we’ll explore the most common scams circulating today, provide tips on how to recognize them, and share steps you should take if you think you've been targeted. Staying vigilant can save you from falling victim to these dangerous schemes.
What is a Phishing Scam?
“Phishing” is a play on the word fishing. It refers to scams in which the scammer tries to “lure” you into sharing sensitive information or sending them money by making up a story and impersonating a reputable person or entity. Phishing scams are usually initiated via email, phone call, or text message. Social media messages and computer pop-ups can also deliver phishing scams.
AI makes scams harder to identify
The use of AI is changing many things in our world. Unfortunately, it’s also making phishing scam messages more realistic and harder to catch. With AI, scammers can generate text that sounds more natural, with fewer grammatical errors or awkward word choices. They can also manipulate photos and videos of real people, both famous and not, as well as corporate logos.
Learn the most common red flags of scams
Knowledge is power–you’ll be less likely to fall for a scam if you familiarize yourself with the features most scams use to trick people.
The message comes out of the blue.
You weren’t expecting to hear from your bank or the IRS, etc. There’s no reason for you to owe back taxes or have a problem with your account, but suddenly you’re contacted about it.
You feel pressured to act immediately.
Scammers don’t want you to stop and think, so they use fear and threats to pressure you into giving them what they want before you have a chance to second guess it.
You can only pay with unusual payment methods.
Think about how you usually pay a bill or make a purchase–with your credit or debit card, Paypal, or an electronic bank transfer. Scammers aren’t legitimate companies, so they don’t ask for standard payment methods. Instead, they’ll request prepaid gift or debit cards, cryptocurrency, or wire transfers. They don’t want your payment to be traceable or reversible.
You're asked for your full Social Security or bank account number, or other personal or account information.
When you contact your bank, you may be asked to verify your identity by providing the last four numbers of your Social Security, account, or debit/credit card number. However, no legitimate financial institution, company, or government agency will ever ask for the full number. You should never share sensitive information over the phone or by email, text, online form, etc.
Do you know all the things your bank will never ask? Test your knowledge with our blog post.
The offer seems too good to be true.
When not using fear or threats to pressure you into giving them what they want, scammers will dangle the lure of a too-good-to-be-true offer. Whether that’s a sudden prize winning for a contest you don’t remember earning, or a deeply discounted price on an in-demand product, be wary of anything that seems too good to be true.
8 Types of Bank Scams To Watch Out For
Now that you know the general tactics scammers use, let’s look at the most popular scams circulating now.
Check Fraud
Paper checks may be an old technology, but check fraud is on the rise. Whether stolen from a mailbox or purchased on the dark web, fraudsters “wash” the check to wipe everything blank except for the signature and then they make it out to a new payee. Individual consumers, as well as businesses of all sizes, can become victims of check fraud.
Other types of check fraud include overpayment scams, in which someone sends you a check for more than the agreed-upon sales price and asks you to send back the difference. The check ends up being fake and bouncing. There are also check scams in which you’re sent a check for supposed lottery or sweepstakes winnings. The sender asks you to pay taxes or fees in order to redeem your prize. Then the check turns out to be counterfeit.
Employment Scams
With this type of fraud, scammers pose as employers or recruitment agencies and offer enticing job opportunities such as the ability to work from home or earn higher-than-average wages. Then they may steal your personal information and/or ask you to pay for equipment and training upfront.
Student Loan Forgiveness Scams
These scams offer relief from student debt through loan forgiveness programs–for a fee. Or, they may offer to help you apply for forgiveness–also for a fee.
Government Imposter Scams
Scammers will pose as IRS agents, FBI agents, employees from the Social Security Administration, and other government agencies. With government imposter scams, you’re usually told you owe money, your account has been compromised, or you’re being investigated for something. Fraudsters use threats and urgency to get you to share sensitive information or send money.
Bank Imposter Scams
In addition to impersonating government agencies, scammers will pretend to be your bank, calling or texting you with the claim that fraudulent activity has been detected on your account. Remember that your bank will never ask you to provide your full account number, Social Security number, or sensitive information. Contact us directly if you have any questions about your account.
Charity Scams
Be wary of solicitations for charitable donations, especially in the wake of well-known disasters and tragedies. Scammers capitalize on your empathy and generosity to ask for “donations” that are really going into their own pockets. Instead of donating in response to a message or social media post, it’s best to research the causes you’re interested in and select the non-profit organizations you want to donate to. When it comes to helping victims of a natural disaster, attack, etc., research reputable organizations to donate to.
Tech Support Scams
This type of fraud usually begins with a pop-up message on your computer. You’re told that a virus or other issue has been detected on your computer and you should call this number to get help. Scammers will then ask you to give permission for them to access your computer remotely. While they pretend they’re fixing the problem, they’re actually installing malware on your computer so they can steal your personal and financial data.
Investment Scams
This type of fraud has also been on the rise recently, with victims invited to invest in cryptocurrency or other schemes that promise guaranteed and/or too-good-to-be-true returns. You may even receive payouts at the beginning before realizing you’ve been scammed. If you’re looking for investment advice or help managing your portfolio, reach out to your local Wealth Management team instead.
Tips For Protecting Yourself From Scams
Knowing how to identify a phishing scam is your best defense against falling for one, but here are some other tips to help you protect yourself.
- Monitor your financial accounts regularly and contact your bank or credit card company immediately if you see any unauthorized transactions.
- Use multi-factor authentication whenever possible and never share your one-time-passcode with anyone.
- Don’t share personal or financial information over the phone or email.
- Avoid clicking on links or downloading attachments you weren’t expecting. Hover your mouse over a link to view the full URL.
- Use strong passwords that are a mix of letters, numbers, and special characters. Create unique logins for every account and change your passwords regularly.
- If you’re not sure whether something is legitimate or not, don’t respond to the email, text, or phone call in question. Instead, contact the entity directly through the official customer service number on their website.
About West Shore Bank
For 125 years and counting, West Shore Bank has been the local bank you can rely on. We are here to help you protect your bank account and personal information from fraud. If you have any questions about your West Shore Bank accounts or think you’ve been scammed, contact us. You can also check our latest fraud prevention alerts.
