How to Identify a Scammer & Avoid Bank Account Scams

Modern financial technologies have made buying gifts, paying bills, and tucking money into savings accountseasier than ever. However, it also means anyone with the right passwords or other personal information can impersonate others. Major data breaches that make news headlines are worrying, but individuals can also be victims of bank account scams through phone calls, emails, and more.

Banking scams can be obvious in some instances, yet they can also be subtle or difficult to detect. Today, we’ll go into how to avoid bank account scams and explore what to do if you think you’ve been impacted by a scam. Let’s begin.

What are bank account scams?

Banking scams are types of fraud that aim to obtain money or personal information and are often performed over the phone or via email. For example, you might receive a call from an organization claiming to be law enforcement and requesting sensitive personal information. Bank account scams may use human “actors,” text messages, or robotic voices – but regardless of their exact method, these scams depend on effectively tricking the person on the other end of the line.

Though there are many types of banking scams, they all have similar goals: obtaining personal information such as passwords, bank account numbers, Social Security numbers, and so on. Once a scammer has this information, they may try to use it to compromise the security of the scam victim’s bank account to make illegal transfers or sell the information to other criminals.

Types of banking scams

Bank account scams aren't new – they've been around ever since there have been bank accounts for fraudsters to target. But banking scams do tend to appear in a handful of forms these days, particularly taking advantage of the reach and obfuscation afforded by modern digital technologies.

Phone scams

Phone scams are extremely common, and they can take many different shapes. At their core, however, phone scams follow a similar script:

• A scammer impersonates another person or organization
• They try to convince the phone call recipient to give away some personal information
• They then take the information to sell later or use to steal money

For instance, a phone scammer might impersonate an IRS agent seeking additional information to complete a victim’s tax return. Or they may call someone and say they’re giving away a free gift – all they need is the victim’s bank account number to complete the transfer.

Some phone scams even use artificial voices to sound warm, welcoming, and non-threatening. With the advent of accessible AI tools, these bank account scams are becoming more frequent and tough to detect.

Text scams

Your phone might be the vector of other bank account scams, only through text messages instead of voice calls. Suspicious texts, often saying things like, “Want to win a GREAT PRIZE?” might appear on your phone and request a reply.

Texting scams can be caught by filters but they can also slip through from time to time. Even worse, replying at all might be just what the scammer intends. When a person texts back “Stop texting me,” the scammer knows they’ve hit a real phone number and may be able to use that information to try a different fraud method on the victim.

Email or “phishing” scams

Most companies train their employees to recognize and avoid email scams, and for good reason: they’re ubiquitous. In a nutshell, email scams or so-called “phishing” scams are similar to phone scams in that scammers may try to impersonate someone with authority or credentials to steal sensitive information.

As an example, an email scam might involve a fraudster sending an email that looks like it comes from the FBI, demanding that the intended victim transfer money to them or pay a ransom in a cryptocurrency or else. Email bank account scams can also request bank account information, a person’s Social Security number, or passwords. Phishing emails come in less conspicuous forms as well, like fake shipping notifications or delivery-failed notices. While these might not be as alarming to receive, the threat they pose to your cyber security can be just as great.

Email scams can include viruses that activate when the email is opened, or they may have dangerous links that redirect to suspicious websites when clicked on. In any event, email scams are everywhere, so it’s important to stay vigilant and prevent them from compromising your bank account.

Debit and credit card scams

In our current digital age, debit and credit card scams have gotten a lot smarter and can blindside consumers through various techniques. Debit or credit card information can be stolen by way of phishing emails, data breaches, or by physically cloning your card. It’s crucial to stay informed on these tactics to better protect your finances, especially given that many consumers may not notice unusual activity until it’s already happened. 

Credit card skimmers are among the most common tools used for credit card scams. Skimmers are small devices placed over legitimate card readers and can often be found at ATMs, gas stations, or retail stores’ point-of-sale terminals. These skimmers can capture your card’s information when you swipe, allowing scammers to copy your card data and later make fraudulent transactions. To avoid falling victim to a credit card skimmer, always inspect card readers for anything unusual, use ATMs inside bank branches, and consider using cash or contactless payment methods if possible. 

Best practices to avoid bank account scams

Bank account scams might be prevalent, but they’re not unavoidable. In fact, you can safeguard your accounts and your personal information by keeping some smart tips in mind and practicing wise online safety strategies.

Watch for common signs of bank account scams

While banking scams are often carefully planned, some leave behind tell-tale signs of suspicious behavior, including: 

• Misspelled texts or emails, which may indicate the message was made hastily or written by someone who isn’t from the organization they claim to represent
• Strange images or graphics, especially blurred images, cropped logos, or insignias
• Promises of gifts or rewards when you do something “simple,” like clicking a button or replying “Yes” to a phone caller’s request
• Threats or warnings of consequences if you don’t do what you’re told – a real official organization, such as the FBI or IRS, won’t threaten you over an email, text message, or phone call

Don’t click links or accept “gifts” without knowing more

One of the best ways to avoid email scams, phone scams, and other types of bank fraud is to simply never engage with them. If you receive a suspicious email, for instance, don’t click any links within. If someone calls you offering a gift, don’t accept it or say anything. Remember, bank account scams require some amount of effort or engagement from you to be successful!

Add your phone number to the National Do Not Call Registry

The National Do Not Call Registry is an opt-in list to which you can add your phone number. After you do this, you should see a vastly lower rate of scam or spam calls and texts. It's not only a great way to avoid bank account scams, but also a smart means to cut down on annoying spam messages.

Never give away personal information

Any legitimate company or institution won’t ask for your personal information in a suspicious way. It’s a good rule of thumb to never give that info to someone who asks for it unless you’re 100% sure they are who they say they are.

If you’re unsure about the identity of a caller or texter, ask for proof of ID. Again, a legitimate contact won’t respond strangely. They’ll produce valid ID and proof of their authenticity. In addition, a legitimate organization won’t request personal information for no good reason.

When in doubt, keep your information safe. You can always find safer ways to work with government agencies or companies and avoid the risk!

Switch up your passwords

It’s also a good idea to regularly change your passwords, even if you don’t think you’ve been scammed. Some scamming organizations know how to lift sensitive information from their targets without anyone being the wiser, including passwords. Swapping out your passwords from time to time renders any stolen ones useless, so it’s an effective extra security measure for added peace of mind.

Monitor your accounts

If you have been recently scammed, you may only notice it when money goes missing or strange transactions begin to appear in your records. The sooner you realize your bank account has been compromised, the faster you can lock it down and lock fraudsters out.

Therefore, make it a habit to check your account often. Use monitoring controls, such as Account Alerts or SavvyMoney, to keep track of banking activity and protect your money. Contact your financial institution to see what safeguards and controls they have in place for this goal; odds are they’ll have at least a few tools or settings you can use to protect yourself.

What if you think your bank account is compromised?

It’s possible to still get fooled by a bank account scam, even if you’re careful. Don’t feel bad about this – instead, take some immediate steps to minimize the damage.

For starters, contact your financial institution and tell them you think you've been scammed. They should be able to change your account passwords, cancel credit cards, or take other actions to stop thieves from getting your money.

Next, change all of your passwords and login information for other accounts. That way, even if a thief got your info for one account, they won’t be able to use it for others, such as streaming services or company emails. 

Lastly, be sure to block any suspicious accounts you interacted with previously and make a note of what happened. Now that you have more experience, you’ll be better equipped to avoid future banking scams!