Bank Impersonation Is the Most Common Text Scam: What You Need to Know
Have you ever received a text message from your bank or credit union alerting you of unauthorized activity in your account or the threat of your account being frozen, and the message includes either a link to "reactive or authorize your account" or a phone number to call? If so, you want to think twice before clicking the link or sharing your information as this is a common example of a bank impersonation scam.
If you have signed up for text notifications from your bank or credit union, it’s easy to mistake the scam texts for legitimate bank alerts. After all - as we all know - fraud is rampant.
How Bank Impersonation Scams Work
Bank-impersonation scammers pretend to be security departments at banks or credit unions and send out text messages, emails, and robocalls that supposedly warn people of unusual, possibly fraudulent activity that requires immediate action. In reality, they’re trying to get people to provide account numbers and login information, or to transfer their funds for safekeeping into accounts controlled by the criminals. In the process, they also may steal targets’ personal information, which can be used to commit identity fraud.
Some fake bank notification texts warn that an account has been locked, while others ask the target to verify a large purchase that supposedly has been made at a store. “If they reply ‘no,’ which many people might do reflexively, they’ll get a call from someone claiming to be the bank,” Fletcher says.
Fake Bank Messages Try to Create a Sense of Urgency
Typically, a scammer on the phone will try to alarm the people being targeted, saying that they must take immediate action to protect their accounts from being emptied.
“They will be walked through a series of steps that they’ve been led to believe will cause the fraudulent purchase or transfer to be reversed,” Fletcher says. But the money is actually being transferred into the criminal’s account.
How to Protect Yourself Against Bank Text Scams
Some tips from the American Bankers Association and other sources include:
- Never click on links on texts or emails. Instead go to the bank's website (even if you're signed up for text alerts. Use the URL listed on your statements or that you've previously bookmarked and check for any alerts on your account.
- If you get a robocall or call from someone claiming to be from your banks, hang up. Then contact your bank in a way you know to be legitimate, either online or by calling the phone number on your statements or debit card.
- Never provide account data or personal info. As ABA's Banksneveraskthat.com website explains, “our bank will never ask for your PIN, password, or one-time login code in a text message. If you receive a text message asking for personal information, it’s a scam.”
- Don't rely on caller ID. Scammers can use technological tricks to display actual bank phone numbers or even the name of the bank.
- Be wary of a message or caller insisting that you take immediate action. Scammers try to put you under pressure to act quickly, to make it more difficult for you to think clearly.
- When is doubt, seek assistance. If you're unsure what to do in response to what appears to be an alert from your financial institution, stop and ask a trusted person - a friend, family member, or coworker - to help you.
Reporting Bank Impersonation Scams
If you experience a bank impersonation attempt, notify your financial institution of the occurrence. Include a screenshot of the text. If you lose money to this scam, contact your bank immediately — they may be able to halt the transaction.
Originally posted by AARP adapted by IAACU.
