7 common banking scams (and how to avoid becoming a victim)

Core Insights - The prevalence of bank scams is increasing, with consumers losing over $12.5 billion to fraud in 2024, marking a 25% rise from the previous year [2] Common Banking Scams - Faux Bank Websites: Scammers create fake bank websites to collect personal information [3][4] - Malicious Apps or Extensions: Some apps are designed to track device usage and steal personal details [5][6] - Fraudulent Communications: Scammers impersonate banks through emails, texts, or calls to obtain banking information [7][8] - Check Washing: Criminals steal and alter checks to commit fraud, with 63% of financial professionals reporting check fraud attempts in 2024 [8][9] - Check Overpayment: Scammers issue checks for more than owed and request the difference back, leading to bounced checks [11][12] - Employment Scams: Fraudsters pose as employers, asking individuals to transfer money using their bank accounts [13][14] - Unauthorized Accounts: Fraudsters open bank accounts using stolen personal information, potentially damaging the victim's credit [15][16] Red Flags of Bank Scams - Pressure to act quickly, requests for money transfers, and unusual payment methods like gift cards or cryptocurrency are common indicators of scams [16][17] Steps to Take if Victimized - Victims should place a security alert on their banking file, use the FTC's Identity Theft Recovery Plan, contact their bank, file a police report, and set up a fraud alert with credit bureaus [18][19]