Today’s consumers have more and more options for paying bills, depositing checks, sending money to friends and family and performing other banking transactions. But each new method comes with new ways for fraudsters to deplete your bank account.
Having your bank account raided by scammers can devastate your ability to pay your bills and everyday expenses. Luckily, for each common type of bank fraud, there are ways to keep your accounts safe and secure.
This type of fraud involves illegal attempts to obtain money through checks. Although Americans use fewer paper checks than they did in previous decades, they still write an average of three checks each month, according to the Federal Reserve Bank of Atlanta. That’s plenty of opportunity for fraud involving paper checks. Examples include:
Ways you can do to help protect yourself from check fraud include:
Investigate suspicious checks: If you receive a check that you suspect could be fraudulent, reach out to the bank that issued the check to confirm it’s legitimate before you attempt to deposit it into your bank account.
Avoid overpayment scams: Some check scams involve the writer of the check issuing it for too much money — essentially making an overpayment — and then asking you to send them back the extra amount. Once you’ve done this, you may find out the check bounced, so you’ve been scammed out of whatever amount you sent.
Don’t pay for a prize: Fraudsters may try to convince you that you’ve won a prize and need to send some funds to cover processing costs. After sending a check, you’ll eventually realize there is no prize on the way. Never write a check (or send money in other forms) to someone you don’t know or feel suspicious about.
Peer-to-peer (P2P) payments are those made between people using services such as Zelle, Venmo, Paypal and Cash App. When you send a payment to a friend or relative through a P2P provider’s website or mobile app, the money typically goes straight from your checking account to the other person’s.
It’s important to be aware of common types of scams involving P2P services, according to Jason Zirkle, training director with the Association of Certified Fraud Examiners.
“Most are impersonation scams, where the scammer pretends to be a representative from your bank (or a government agent, or a utility provider, etc.) asking you to send money,” Zirkle says. “They will often use spoofing services to trick your caller ID into showing that the call actually is from your bank, so do not trust caller ID.”
Fraudsters may also request you send money to yourself through an app such as Zelle, Zirkle adds. “Scammers will try to convince you that this is the only way to ‘reverse’ a fraudulent transaction, but in the end, you’re sending money to the scammer.”
There’s a good chance you won’t be able to recover money stolen through P2P fraud, Zirkle says.
“The quicker you accept that, the quicker you can move forward,” he says.
Zirkle advises attempting to get the funds back with these steps:
Thieves use ATM skimming to people’s credit and debit card information by installing hidden recording devices on ATMs. Skimming is also possible at payment terminals like those at gas stations.
Thieves can install a plastic overlay atop the keypad to capture your PIN as you type it. Similarly, an overlay installed over the card insertion slot lets them obtain the data on the card’s magnetic stripe.
Once scammers obtain your card number and PIN, they may use the information to create fake cards, withdraw your money or make online purchases. Scammers also sell stolen card numbers to criminal groups for fraudulent use.
Ways you can help avoid ATM skimming include:
The sooner you notice and report skimming activity on your account, the sooner you can stop it. Be sure to log in to your bank accounts regularly to view your balance and recent transactions. Take note of anything you don’t recognize.
If you find any transactions you believe are fraudulent, report them to the bank immediately. Quick action may limit your liability for unauthorized transactions.
Phishing scams are cyberattacks that involve tricking the victim into sharing login credentials or other sensitive information. Scammers may insert malware into a text or an email, allowing them to steal your information if you click a link or download an attachment.
Phishing messages are usually designed to look like they’re coming from someone you trust, such as your bank or another service provider.
“Be aware of phishing messages, calls and emails that look like they’re from your bank,” says Zirkle. “Never click links in emails or text messages. If you have questions about whether or not the email/call/text is legitimate, call the bank phone number on the back of your debit card.”
The FTC advises taking these steps if you’ve been a victim of a phishing scheme:
Scammers often request wire transfers because it can be difficult for victims to recover the money they send. Common wire transfer scams include:
Never wire money to anyone you haven’t met in person, who pressures you to send money immediately or who says your only payment option is a wire transfer. Likewise, do not wire money to anyone who claims to work for a government agency such as the IRS or Social Security Administration.
Your likelihood of being a victim of financial crime may depend on where you live in the U.S., according to a study by marketing agency TOP. The study measured each state’s per-capita rate of financial crimes, including credit card fraud, extortion, identity theft, investment crimes and personal data breaches.
The study identified Nevada as the state where you’re most likely to be a victim of financial crimes. The 10 states with the highest rates of financial crime, in descending order, are:
The study identified South Dakota as the state where you’re least likely to be a victim of financial crime. The 10 states with the lowest financial crime rates, in ascending order, are:
Bank account fraud can happen no matter where you live, so it’s important to protect your money by being aware of common scams. Vigilance and precautions can help keep your bank account safe and secure.
If you lose money through check fraud, peer-to-peer payment scams, ATM skimming or phishing schemes, know you have recourse to minimize the damage and try and regain your funds.
Click Here For Original Source.
Recently, SEC Chair Gary Gensler issued fresh warnings about cryptocurrencies amid Bitcoin's surge to a…
Pay Dirt is Slate’s money advice column. Have a question? Send it to Athena here. (It’s anonymous!) Dear…
By Virma Simonette & Kelly Ngin Manila and Singapore14 March 2024Image source, Presidential Anti-Organized Crime…
Technology has disrupted many aspects of traditional life. When you are sitting at dinner and…
Reports of suicides, missing bodies, sexual kompromat and emptied bank accounts as fake sangomas con…
A South African woman has been left with her head in her hands after she…