You may think you are savvy enough to notice bank fraud, but fraudsters are becoming saved. People lost $ 10 billion in fraud only in 2023, according to the latest data from Federal Commission for Trade. And as soon as the thief has money, it can be difficult – if not impossible – to return them.
The good news is that many banking frauds use the same strategies and know what they can help to protect your earned money. Here's what you need to know to overcome the criminals who see your money.
Read more: Is that text message from your bank legitim? How to discover and avoid scams for SMS phishing
10 common bank fraud
You can stay one step ahead of fraudsters knowing the patterns they want to use.
💰 Check fraud
You get a check requesting to deposit it and return part of the sender's money. The check can be cleared, but until your bank realizes it is false, you have already sent real money from your bank account to the fraudster. If a potential “employer”, the secret shopping company or other source asks you to send money from a check that gave you, collect the check and ignore the request.
🧽 Check washing fraud
Criminals can steal envelopes containing mail checks, use chemicals to wash the check and change the amount of the recipient or dollar. To protect against this fraud, use security checks, never leave checkboxes blank, do not allow mail to sit in your mailbox and write black ink checks – it's harder to wash.
🎣 Fool's fraud
In a Phishing fraudYou get a text or is – a source of a source that looks real – such as your bank or communal company – asking you to update your information. If you share your details, criminals can take your account. Never click on the link to an unwanted message. Call your bank's official customer service line to confirm the request.
🎉 Automatic withdrawal fraud
You get a surprise or phone call message saying you've won an award. All you have to do is provide your bank account and routing number to get the money. Once they have this, the fraudster can initiate a repeated automatic withdrawal, it costs you much more than the disappointment of realizing that there is no reward.
Tip: You've probably heard it before, but it's repeated: if something sounds too good to be true, it's probably.
💸 Subscribe subscription fraud
This fraud requires you to pay a fee in advance, promising to get money or services in exchange. In some cases, these frauds are easy to note – think, the classic “Nigerian prince” scheme – but others are more sophisticated.
For example, if you are struggling with a debt, you may be tempted by a company that offers to help you get back on track. Don't let cheaters prey on your trouble. There are many legitimate ways to Get out of credit card debtincluding contacting a reputable nonprofit Debt Counseling Services.
🖥 False Bank Web Pages and Applications
Cheaters can easily set up a fake web site or application that looks like a real bank to deceive you to provide personal information or send money. Before you click on any links, confirm that the URL is actually your bank or credit union. FDIC Bankfind is an easy way to check. When installing a mobile phone Bank application On your phone or tablet, make sure you download it directly from the Apple Store or Google Play Store.
🥸 fraud of government imposing
The government agency such as IRS and the Social Security Administration usually only contact you through physical mail. If you get a phone call or a text message from someone who claims to be a government official, do not respond or give them information – even if communication looks at first. Cheaters can easily deceive legitimate phone numbers.
💼 fraud to work
Legitimate job announcements will not ask for your banking information or ask you to pay for products and services to get started. Before applying for a job, look for the company's name with the Better Business Bureau to make sure you are not for it fall into a trap.
🆘 Charity fraud
Cheaters want to take advantage of your nessy, especially when the disaster like an earthquake or hurricane strikes. Instead of responding to an unwanted donation request, do your own research to find a legitimate local organization and ensure your money really goes to the cause.
Tip: If you are not sure how to donate for a reason you care about, contact a nationally recognized operation, such as the Red Cross or feed America.
🥷 Identify theft
Identity theft comes in many forms, from fraudsters who go to spending information on your debit card to using your social security number to Open a bank account on your behalf. The best way to protect yourself from identity theft is to regularly review Your credit report And statements about accounts and contact the bank immediately if you see something suspicious. You can also sign up for Identity theft protection service for extra peace of mind.
How to avoid bank account fraud
While bank fraud can be attractive, there are a few simple steps you can take to get rid of them.
- Know the red flags. Be wary of unwanted communications, demands that create a false sense of urgency and offers that seem too good to be true. If it seems suspicious, it's probably.
- Do not give your personal information. Keep your private information private, from your account numbers to login credentials. It involves the destruction of any documents containing sensitive information before removing them.
- Create strong passwords. Use a combination of letters, numbers and special characters to create unique passwords. Avoid identifying information like your house number or birthday. And do not use the same password for multiple pages or applications. A Password manager It can help you keep track of your login through the platforms.
- Enable multi-factor authentication. Cheaters can be able to break your password, but replicating the print or the person is much harder. Multi-factor authentication requires these biometrics to access your bank account.
- Avoid public Wi-Fi networks. Do not do your online or mobile banking on unprotected Wi-Fi network-keep up to your secure home network.
- Follow your bank reports and credit report. Regularly consider the transaction history of your account and withdraw your loan report throughout the year to notice any suspicious activity.
- Drag Chexsystems reports. If you are worried, someone can open a bank account on your behalf, get a copy of your Chexsystems Disclosure Report and Consumer Result Report to look for any negative grades against your name.
- Use an identity theft service service. Neede you have to pay for Best Services for Protection and Monitoring of Identity TheftBut it can be well worth it if you can sleep better at night.
What to do if you have fallen a victim of bank fraud
If you believe you are a victim of bank fraud, follow these tips to limit the damage.
- Contact your bank. Contact your bank or credit union immediately to minimize losses. In most cases, an immediate report will help you reduce your potential responsibility. However, do not stop with one account. Take a complete inventory of your other financial products, including your credit cards, to ensure that these accounts are not at risk.
- Submitted an appeal. Contact FTC To log in and get a recovery plan.
- Submit a police report. While local police will not be able to do much if the cheat has thousands of miles away has your account number, the police report can prove that fraud has happened and you have tried to stop it. For example, if one uses your personal or financial information to punish money, the report can help show that you have not been included.
- Change your passwords. Update your passwords in all your financial accounts and consider changing them for other services, such as -social media.
- Set signals for fraud and security. In addition to carefully on your credit report, consider setting signals for fraud with all three credit bureaus Equifax, Experiment and Transunion – as additional safeguards. It is also smart to set a security alert with Chexsystemsthat will automatically inform you of any attempts to open new accounts in your name.
Keep cheaters out of your bank accounts
As long as you have money, there is a criminal who would like to know a way to steal it. Fortunately, there are many ways to prevent their attempts. By taking some precautions and practicing healthy skepticism, you can keep your earned money safe and rest the cheaters' hands.