Unlike credit card fraud, falling into scams such as the Monzo scam is not covered by federal insurance. Avoid giving out personal information such as passwords or PIN codes to scammers. Also, keep your operating system, anti-virus and mobile devices updated.
Never click a hyperlink or download a file from an unknown website. If you feel pressured to act fast, be suspicious.
Ask For Collateral
Fraudsters only have one goal: to steal your money. They are constantly inventing new ways to steal money from unsuspecting customers, and banking is one of their main targets. Keep your eyes peeled for any fraudulent activity. Do not respond to any suspicious messages or calls. If you believe you are a victim of a scam, contact your bank as soon as possible to see what help they can provide.
The most common form of bank fraud is advance fee loans. These are often marketed through the internet, phone, or newspaper. The fraudster claims to be able to secure a government grant or loan in exchange for an advance payment of a small fee. They may also tell their targets to wire the funds to them, often using a fake name and address in order to avoid leaving a paper trail.
It is a good idea to never wire money to a stranger, especially someone you have met online or over the phone. It is a good idea to request collateral, such as a physical item or pre-paid credit card, if you are uncertain about the identity of the person. This will allow you the option to cancel the purchase and prevent the fraudsters from accessing your debit card or bank account.
Another common scam involves “Authorised Push Payment” fraud, where a fraudster deceives an individual or business into sending a payment to a bank account under false pretences. This can be invoices for goods and services that do not exist, phishing or even hacking. These types of payments can be difficult to reverse, so it’s important that individuals and businesses closely monitor their credit reports and bank statements for any unexplained transactions or withdrawals.
You should also avoid disclosing sensitive information via email, phone or postal mail. A genuine financial institution or bank will never ask you for your bank account information, pin numbers or one-time codes. This information should be given to a trusted financial organization over the counter or via their official website.
Be Extra Vigilant
If you ever receive an approach from someone asking for cash, demanding difficult-to trace forms of payment, or claiming they are your bank, proceed with caution. These are classic red flags and can indicate a scam is underway.
Usually, they will impersonate an employee of a Bank, a customer service representative, or another official. They might be requesting passwords or other account information and may cite an emergency to pressure you into responding immediately. They may threaten to do something bad if you don’t respond immediately.
Scammers may also use phishing, a type email fraud where the scammer tries to get sensitive personal information out of you. This includes your personal information such as your credit card or bank account details, or other credentials such as Medicare or Medicaid cards or social security numbers. You’ll likely receive the phishing email from an official-looking email address and even receive a fake invoice, which is why it’s so important to always check the email address in person or by phone.
Scammers are always coming up with new ways to steal money, so you need to be extra vigilant. Keeping your operating system and virus protection software up-to-date and never sharing your full PIN or password with anyone can help you avoid being targeted. You should also be sure to monitor your bank account and set up alerts when there are large transactions. This will help you spot any unusual activity.
It’s easy for scammers to impersonate your bank and ask you to provide account information or personal details. You should be suspicious of any text message, email or phone call that claims to be from your bank, unless you can confirm it’s a real person at the number on the back of your card or in your bank statement.
According to the Canadian Anti-Fraud Centre, a fraudster can pose as a bank investigator to commit a financial fraud. This scam typically occurs when the fraudster calls the victim and says that their account has been compromised and they must provide personal or banking information in order for the police and/or the bank to investigate the matter further. If you receive a call like this, hang up and immediately call your bank at the number on the back of your debit card, preferably from a different phone line than the one that was used in the call.
You can also avoid bank scams by setting up alerts to notify you of suspicious transactions. Many banks let customers set up transaction alerts to be notified when a large withdrawal occurs, or if there is an unusual activity such as a change of account numbers or an international wire.
The Federal Deposit Insurance Corporation and National Credit Union Administration (if you’re using a credit union) do not cover any money you lose due to a scam. Trying to get the funds back from your bank can be a long, difficult process, and it’s best to report it as soon as possible.
Avoiding common bank scams will increase your chances of recovering any stolen money. By taking proactive steps to protect your account information, you can keep hackers away from your finances and account information.
They Are Convincing
One of the most common bank scams involves individuals who take money that has been stolen from someone else and then transfer it to their own account. This is called being a “money mules”. Money sent to someone you don’t even know or have only met on the internet is rarely, if at all, recovered. The victim of the theft could be required to repay their bank the money that they sent to this individual.
Scammers often target those who are less familiar with cyber security. They can use the internet to create a fake company that appears legitimate and asks for sensitive information such as social security numbers or bank account details. These details could be used to commit fraud against the victim’s account, or even steal their identity. Scammers are more likely target those who have opened their first bank account, the elderly, and those with less technological knowledge.
Many scammers are very convincing. This is especially true when they pretend to represent a trusted source, such as a bank or government agency. This is why you should never rush to send money or provide personal information. If you feel a sense of urgency from someone who you are dealing with, this should be seen as a red flag and you should stop the interaction.
It is also a good idea to always use an anti-virus software program on your computer and mobile devices, and keep it updated as needed. This can help to detect new kinds of malware that can be used by scammers.
Scammers are getting more creative and sophisticated in how they target their victims. Now they can use spoofed numbers and sender identification to appear as if it was the real bank. These fake messages may ask you to confirm information or immediately transfer funds. Remember that your bank will never contact you via text or email asking for this type of information and will only ask you to call them using a number you have previously verified.