Scams That Can Affect Your Bank Account

Technology is one of my very favorite things. There’s nothing I love more than to sit down and stream movies or TV shows, scroll through my smartphone or just send a quick text instead of having to make a phone call. Unfortunately, tech isn’t only available to the good guys. Fraudsters frequently take advantage of technology and its accessibility to defraud hard-working people out of their money. Here are some common scams we see in the financial industry.

Phishing

Phishing occurs when a fraudster sends an email from (what appears to be) a legitimate or known email account asking you to verify sensitive information. This might be passwords or another log in credential for your bank accounts, credit or debit card information, or security questions that might typically be asked during a financial transaction. There might also be a link or attachment embedded in the message that records keystrokes, or that contains malicious malware that can assist the perpetrator in carrying out their theft.

Your financial institution will NEVER email you asking for sensitive information. While we do ask for verification, it’s always done on the phone or in person. We will also never ask for your password for online banking – and you should never share that with anyone.

Overpayment Scams

You come into possession of a check and are being asked to deposit it into your account and either withdraw or wire a portion of the funds to the fraudster. This might occur in person, or you might receive a physical check in the mail. While there are plenty of occasions in which receiving a check in the mail would be legitimate, the rule of thumb is, if you weren’t expecting it, or if it doesn’t make sense on its own, it is likely an attempt to scam you.

An example of a legitimate check that might surprise you is in the case of a finance company mailing a solicitation in the form of a check. These checks are for a predetermined amount and are accompanied by a disclaimer indicating the loan terms to which you are agreeing upon cashing the check.

No legitimate company or person will ever send a check to you with the expectation of receiving a portion of the deposited funds back. When this happens, the fraudster is banking on the discovery of the fraudulent check occurring long after they get their money back from you. This leaves you on the hook for the overage and any fees that are associated with this set of transactions.

Automatic Debits

Setting up an automatic payment is convenient and saves you from having to worry about late payments, but sometimes they can be set up under false pretenses. If you sign up for a free trial with a company and either never receive the item(s), or are still being charged after requesting a cancellation, this may be a sign of an automatic debit scam.

Pay close attention to purchases and agreements. When you provide your financial information, you want to be absolutely sure what the terms of usage are and that you are comfortable with them.

When you suspect fraud, it’s critical to act fast. Stopping the damage early prevents or minimizes loss and it can save you from a big headache down the road. I wouldn’t be earning my salary if I didn’t take this opportunity to recommend our Fraud Alerts. They’re FREE and they’ve saved me personally from losing a bunch of money that I couldn’t afford to lose. They can probably help you, too.

Did this cover everything you wanted it to? If I’ve missed anything, or if you want to hear more, email me or leave a comment. I’d love to hear from you!

Krista Kyte is a personal finance blogger and personal banker with over 17 years of experience in the financial industry. Krista is passionate about helping our members understand their financial situations. She writes tips that will help consumers reach and maintain financial security, and start living the life they’ve always wanted.