Saturday, October 15, 2022

How To Scam Bank Accounts

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How To Report Charity Scams

How Scammers Drain Your Bank Account


  • Dont give in to high pressure tactics such as urging you to donate immediately.

  • Dont assume that you can get a tax deduction for donating to an organization. Use the IRSs database of 5013 organizations to find out if it has this status.

  • Dont send cash. Pay with a check or credit card.

How To Protect Yourself From Bank Scams

Scams will likely be around for as long as people continue to fall for them. You can protect yourself and your bank account by following the tips below.

Dont cash checks for other people. You may want to help other people, but never cash a check in exchange for cash unless you know the person well.

Do your homework. Read and inspect everything. Whether its an email, text or arrives in another form, always read the fine print. If an offer looks suspicious or too good to be true, it probably is.

Dont share personal information. With the correct information, scammers can access almost every aspect of your life. This includes financial and other accounts, as well as stealing your identity. Never share account numbers, Social Security numbers, credit card numbers or passwords with anyoneunless you know the person or know its a legitimate request.

Avoid high-pressure sales tactics. Dont accept sales pitches that pressure you to act quickly without first reviewing the fine print.

Avoid paying fees. If youre sent any offers, prizes or job openings that require an up-front fee, chances are its a scam. The same goes for offers from unverified sources that require bank account information in order to redeem or claim them.

Use your best judgment. If something doesnt feel right to you, dont move forwardwhether its giving out personal information or clicking on an email link. If youve never received a phone call from the FTC before, think about why you would receive one now.

Scam #: Card Cracking And Job Scams

In card cracking schemes, scammers use social media to post opportunities to make “easy money” in a way they say is legit. They typically request your debit card and PIN and/or mobile banking username and password to deposit a fake check into your account. They may ask you to report your card lost or stolen or that your username and password have been compromised in order to seek reimbursement from your bank. In exchange, scammers promise you a portion of the money you deposit.

After gaining access to your account, scammers can transfer money or deposit phony checks and quickly make withdrawals before your bank identifies the bad checks. Not only are you robbed of your money, but you may also face hefty fines and criminal charges because your participation in this scheme makes you a co-conspirator.

In job scams, victims are promised a high-paying job in return for a small advance fee to secure a position that doesnt actually exist. The phony employer may also send a new employee a fake check before their start date and require them to send some of the money back to pay for training or supplies. If the employee deposits the fake check, they will be responsible for the check amount and any money sent to the scammer.

Also Check: How To Transfer Money To Someone’s Bank Account

Know The Best Ways To Avoid Being Scammed

Dont respond: If youre not 100% certain of the source of the call, email or text, then hang up the phone, dont click on the link in the email and dont reply to the text message.

Dont trust caller ID or answer phone calls from unknown numbers: If you recognize the caller ID but the call seems suspicious, hang up the phone. Phone numbers can be easily spoofed to appear to be from a legitimate caller.

Dont give out your information: Never provide any personally identifiable information unless youre absolutely certain the person and reason are legitimate. Remember: Bank of America will never ask you to send us personal information such as an account number, Social Security number or Tax ID over text, email or online.

Research and validate: If the individual or organization seems suspicious, make sure the request being made is legitimate by calling the organization through an official number from their website or consulting with a trusted family member or friend.

If you feel you may have been a victim of a scam, contact us immediately.

Know fraud when you see it

Know what to do when your card is lost or stolen, you see suspicious activity on your statement and more.

Reporting To The Federal Trade Commission

Fraud Alert: What Are You Doing to Keep Scammers Out of ...
  • 1Visit the FTC’s Complaint Assistant website. The FTC maintains a website where you can file complaints about individuals or businesses that engage in fraudulent activity.
  • Although regulatory agencies such as the FTC don’t investigate or resolve individual complaints, they compile your information into databases that are used by federal, state, and local law enforcement to uncover patterns of criminal activity.XResearch source
  • 2Select the appropriate category and sub-category. Before you submit your complaint, you must first place it in one of the FTC’s categories.
  • If you’re unsure about where to place your complaint, you can use the sub-categories to better understand the types of complaints within each category. There is an “other” category if the suspected fraud you’ve encountered doesn’t fit into one of the FTC’s categories, or isn’t accurately described by any of the sub-categories.XResearch source
  • 3Enter information about the suspected fraud. The FTC complaint form includes space for you to enter details about yourself, the individual or company that perpetrated the fraud, and details about the incident.XResearch source
  • You don’t have to provide personal or contact information for yourself. However, if you choose to remain anonymous, the FTC or other regulatory or law enforcement agencies will be unable to contact you if your complaint becomes the focus of further investigation.XResearch source
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    This Growing Fraud Will Drain Your Bank Account

    • Use two-factor identification when available.
    • Switch up your passwords.

    The first sign of trouble was a call from Brooke Frizzell’s bank: Had her husband, Craig, just called in claiming to have forgotten his account password?

    Frizzell quickly confirmed the bank’s suspicions of fraud. Craig was in a Milwaukee hospital recovering from emergency brain surgery. “Maybe he really did forget his password,” she said but he definitely wasn’t calling from Miami to do a little light banking.

    The warning wasn’t fast enough.

    “Within the next half hour, this person called the bank again, spoke to someone else and initiated a $3,500 wire transfer out of my savings account,” she said.

    That kind of nasty surprise is one that more consumers can expect to encounter. So-called account-takeover fraud which entails thieves using stolen information to access a consumer’s accounts and transfer money was up 31 percent in 2016 from 2015, according to a Javelin Strategy & Research report from earlier this year. Losses due to such fraud topped $2.3 billion, a 61 percent increase over the same period.

    Thieves are looking for easy money, said T.J. Horan, vice president of fraud for FICO, the credit scoring company. The speed of wire and electronic transfers makes bank and brokerage accounts a more appealing target, especially as security advances in other areas like chip and pin technology on debit and credit cards.

    Here’s how:

    Any Of The Following Red Flags Should Signal A Scam:

    • You are asked to wire money.
    • You are sent a check in connection with a payment request. Con artists often win their victims confidence by sending a fake check for more than the amount of purchase or to cover so-called processing fees, shipping costs or other expenses. It may be a cashiers check, personal check or money order. They instruct the victim to cash the check or money order and send them a portion of the money by wire. Read more about;fake check scams.
    • The contact indicates a confirmation code or money transfer control number is needed before your money can be withdrawn.This is a blatant lie. Once you wire money, it can be picked up immediately.
    • A caller or email appears to originate from overseas. The email message may be full of typing errors.
    • The person communicates via TTY service. TTY is used by the hearing impaired. Cons prefer the service because it disguises thick accents and makes calls untraceable. Follow-up correspondence is by email.

    Also Check: How To Overdraft Bank Of America

    Never Give Out Info On Unsolicited Calls

    If you receive an unsolicited call or email, even if they appear to be from your bank, be suspicious. If they request account information such as login info, passwords, social security numbers, etc., do not provide this information.

    Banks will never call you to obtain this information or request any security codes. If they do need you to verify your identity over the phone, it will not be using this information.

    Similarly, donât click on any links or attachments from unsolicited emails. Scammers can create email addresses that appear to be from legitimate organizations. If you are not expecting a message and you receive one from an unknown email address, do not open it.

    Heres The Fake Job Scam In Three Easy Steps

    Online Bank Account Phishing Scam How To Prevent Phishing Scam

    Sure enough, in a few days, the check arrived at Erins home, and she quickly let Miller know. He was pleased and explained to her how she would go about purchasing the equipment.

  • Deposit the check and wait for the bank to make the funds available.
  • As soon as the money becomes available, send an instant transfer to each approved vendor via a cash app. Repeat until youve spent all the money.
  • Step 4, which he definitely didnt mention, was that he would vanish as fast as he appeared. Of course, Erins money would disappear with him.

    Recommended Reading: What Type Of Bank Account Cannot Be Garnished

    Prevention Starts With Education

    As banking technology evolves, the security of your accounts and information is most important. Fraud isn’t just about losing money it’s about the impact it has on your time and wellbeing.

    Together, we can stay safe from fraud. Take control of your security by educating yourself about fraud, so you can spot it before it happens. We’ll do our part to make sure you’re protected when you bank with us.

    Protect Yourself Against Identity Fraud

    • Dont throw out anything with your name, address or financial details without shredding it first.
    • If you receive an unsolicited email or phone call from what appears to be your bank or building society asking for your security details, never reveal your full password, login details or account numbers. Most banks will not approach their customers in this manner.
    • If you are concerned about the source of a call, ask the caller to give you a main switchboard number for you to be routed back to them. Alternatively, hang up and call your bank back on the legitimate phone number printed on your bank statements.
    • Check your statements carefully and report anything suspicious to the financial institution concerned.
    • If youre expecting a bank or credit card statement and it doesnt arrive, tell your bank or credit card company.
    • Dont leave things like bills lying around for others to look at.;
    • If you move house, always get Royal Mail to redirect your post.
    • Get regular copies of your credit report from a credit reference agency.

    Notify your bank immediately if you see any unusual activity on your account.

    Recommended Reading: Which Banks Sell Silver Bars

    Have A Special Procedure For Confirming The Company Name

    If you have been discussing business with a salesperson using a certain company name, you might receive a pro forma invoice in the name of another company. In that case, ask for a written explanation to be sent to you by email and fax. Note that paying a Chinese company in mainland China is safer for you.;

    Tips To Avoid A Banking Scam:

    • Be suspicious if you are asked to wire money from a check you received back to the company that sent it.
    • Be wary of lotteries, free trials, or other solicitations that ask for your bank account number.
    • Always confirm the authenticity of a cashiers check with the bank that it is associated with before depositing it into your account.
    • Verify a check or the check issuer by referencing the contact information on a banks website.
    • Dont trust checks or money orders simply based on appearance. Scammers can make them look legitimate and official.
    • Dont deposit checks or money orders from people or companies you dont have a relationship with.
    • Dont wire money to people or companies you dont know well.
    • Never give your bank account number to someone who calls you, even for verification purposes.
    • Dont click on links in an email to verify your bank account.
    • Dont accept a check that includes an overpayment.

    Remember: Adirondack Regional Federal Credit Union will never call you for your password, or ask you to send it over email. .

    Read Also: Can You Wire Money From One Bank To Another

    How To Protect Yourself From Ponzi Schemes

    Keep these tips in mind to protect yourself from Ponzi schemes:


    • Be wary of any investment that regularly pays positive returns regardless of what the overall market is doing.

    • Avoid investments if you dont understand them or cant get complete information about them.

    • Be alert to account statement errors, which may be a sign of investment fraud.

    • Be suspicious if you dont receive a payment or have difficulty cashing out. ;


    • Dont put your money in investments that promise big returns with little to no risk.

    • Dont contribute to any investment that isnt registered with the SEC or with state regulators.

    • Dont get financially involved with any unlicensed investment professional or unregistered firm.

    What We Look At

    As with every case, in reaching a decision about whats fair and reasonable, we consider:

    • the relevant law and regulations
    • any regulators rules and guidance that applied at the time
    • any industry codes of conduct in force at the time
    • what we consider was good industry practice at the time

    If there are disagreements about the facts, well make our decision about what probably happened using evidence provided by you, your customer and relevant third parties.

    If we decide the customer didnt make or authorise the disputed transaction, well then assess whether they have any liability for it and, if so, how much.

    In making that assessment, well take into account:

  • Scams complaints transactions unauthorised by the customer

    Many of the complaints we see are from customers who tell us they were tricked into handing over confidential information that enabled fraudsters to access their money. For example, the customer may have:

  • received an official-looking email or text message they believed to be from their bank or another trusted organisation, with a link to a fake website where the customer then entered confidential banking details
  • Read Also: Do Banks Refund Unauthorised Transactions

    Types Of Complaint We See

    The range of complaints we see is constantly evolving as fraudsters develop new and increasingly clever methods. These often rely on highly manipulative techniques known as social engineering to trick the customer into parting with their cash or sharing confidential information. In other instances, the customer tells us that details of their card, banking or identity were obtained and used fraudulently. Sometimes customers simply have no idea how the fraudster got so many of their personal details.

    A large portion of the complaints we see fall into the following 3 categories:

    • Plastic-card transactions that the customer tells us they didnt make or authorise such as purchases of goods or services online or in stores or nightclubs.
    • Scams where the customer was tricked into handing over their bank details, allowing the fraudster to take money from their account without their consent.
    • Scams where the customer was tricked into transferring money to the fraudsters account often because they believed they were making a payment to their bank or another trusted organisation.

    Examples of other complaints we see involving fraud and scams include:

    • ID theft, where a fraudster has used the customers identity to obtain goods or services typically a loan from a payday loan company
    • cheque conversion, where a cheque has been stolen by a third party
    • cases where a customer feels theyve been unfairly placed on a fraud prevention database

    Or They May Set Up A Fake Website

    How Scammers Are Using This Popular Banking Service To Drain Your Bank Account | NBC Nightly News

    You might even run across a fake or clone website online.

    “With the cash apps such as Venmo, a lot of the scams come from fake customer service numbers found online,” said;Laura Blankenship, director of marketing for the Better Business Bureau Serving Eastern Michigan.;

    The scammers pose as customer service agents and then get you to confirm your cash app account information which is linked to your bank account.;

    “Scammers can then take money out of your account,” Blankenship said.

    Or you might be trying to sell an item, say a piece of furniture, and a scammer asks you for account information in order to pay you via Venmo or another mobile payment option.;

    If you don’t have a PayPal account, they’ll send you a link to download PayPal.;

    “It’s a fake link,” Blankenship said. “And they’re able to steal your banking information once you’ve inserted it into the ‘platform.'”;

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    Opt In For Extra Protection

    “Turn on what’s called two-factor authentication,” O’Leary said.

    When that’s enabled, logging in requires not just a password, but a secondary point of ID usually in the form of an emailed or texted code, he said. To access your account, a hacker would need to compromise more than your bank login details.

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