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Check your bank account lately? Scammers add a new twist to bank fraud

Bank impersonation is the top reported text message scam
How to bank when you can’t go to the bank
Posted at 5:00 AM, Dec 15, 2023
and last updated 2023-12-15 19:30:27-05

PHOENIX — Watch out for bogus bankers. A report by the Federal Trade Commission finds bank impersonation is the number one reported text message scam.

Here's how it works: The scammer sends a text message or makes a call posing as a bank employee reaching out to you and claiming there is fraud on your account. It's a lucrative scam, stealing $330 million from consumers last year.

"They're asking for debit card information, they're asking for your PIN number or your code that you use for your financial institution, and they're even asking for the three digits on the back of the card," Laura Worzella, Chief Operating Officer with OneAZ Credit Union explained.

She warns scammers are adding new twists to bank fraud scams.

"They're setting travel memos so that they can go spend money outside of the state," Worzella said.

Typically, people may want to set a travel notice or memo before a trip to avoid transactions being delayed or denied because they're being made outside of their normal spending location. However, if a scammer gets access to your bank account and sets up a travel memo, that means they can make transactions more easily without them being flagged as fraud.

Worzella also warns scammers may test accounts to see if anyone is monitoring them, saying, "they just went and spent, you know, $100 and bought $100 in gift cards - nothing happened. Okay, so they'll go back and buy another $100 in gift cards."

Here are ways you can protect your money from text message scams impersonating your bank or credit union:

  • Check your accounts regularly. If you keep a close eye on accounts you're more likely to spot fraud and take action to prevent any large transactions.
  • Know who has access to your money. If you have family with access to the same accounts, check with them if you see any suspicious charges.
  • Don't give out personal information by text or email and question any call you did not initiate. You can always end the conversation and then call your financial institution directly to see if fraud claims are legitimate.
  • If you think you've been the victim of fraud, don't wait - call your financial institution right away. "The faster you can do that, the faster we can block your card or issue you a new card, the safer your information will be," said Worzella.

What if it's a holiday and banks are closed? If you have mobile banking, you can log on to freeze your card and change your PIN and password online yourself. If you do not have mobile banking, call the number on the back of your bank card. That number is operated 24/7.
After bank impersonation scams, the FTC warns these scams are the most reported text message scams:

  • Bogus "little gifts" that can cost you. Victims receive a text message about a free gift, reward, or prize that appears to come from a well-known company running a sweepstakes or giveaway. It's all fake. Consumers click the link and are asked to pay a small "shipping fee". In doing that, they've given out their credit card number and information to a scammer.
  • Fake package delivery problems. Texts pretending to be from the USPS, FedEx, UPS, and Amazon stating there's a problem with a delivery. The texts give a link to a website asking you to put in the information or pay a small "re-delivery fee." It's a trick to get your information and financial details.
  • Phony job offers. Promises to make easy money by becoming a mystery shopper or driving around with your car wrapped in ads are common. According to the FTC, reports show job scammers also target people who post resumes on well-known employment websites and even send fake checks to job seekers to trick them into sending money back to scammers.
  • Not-really-from-Amazon security alerts. Similar to bank impersonator texts, crooks pose as an Amazon employee sending a text stating there's fraud or an issue with your account. Often, the texts ask consumers to verify a big-ticket order they never placed. When calling the number given in the text or clicking the link, people report giving the fake representative remote access to their phone to fix the issue and get their refund. Then, the rep says they over-refunded you and need the consumer to return the money -likely by buying gift cards and giving the cards' PINs to the scammer.

If you think you've been the victim of fraud - report it!
If you've gotten a spam text, forward it to 7726 (SPAM). This helps wireless providers spot and block similar messages.

Report fraud to the FTC on their website.

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