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  • January 14, 2022

6 Common Banking Scams and How to Avoid Them

The way we handle our finances and banking has changed over the years. Keeping a watchful eye on your money is essential as the old-school ways of banking become redundant and new forms of fraud emerge. But, technology allows us to bank and pay for things more conveniently; those with online banking will be able to stop fraud before it happens by reacting even faster than they would in real life.

This is why it’s important that you understand how to spot signs of common banking scams and how to avoid them. So you can protect your money from those who which to gain access to your account. This article will explore six of them and examples of how you can keep your money safe if you find yourself dealing with fraud.

Charity Scams

A charity scam is a type of banking scam that relies on the victim’s sense of empathy to part with their money. The scammer may pretend to be collecting funds for a charity, or they may offer some kind of prize in return for donations. The charitable appeal could be for disaster relief, medical expenses, or any other cause that people would want to help with.

Government Agency Scams

Another common banking scam is the government agency scam. These scams usually involve a fake government agent who will contact the victim by phone or email and tell them that they owe back taxes or other fees. The scammer will then ask for payment in order to avoid jail time or deportation.

Phishing Scams

Phishing scams are popular banking scams because they can be very lucrative and easy to pull off. They work by sending a message that appears to come from a trusted company or partner and asking for personal information such as passwords, credit card numbers, or account details.

The message may look like it’s from your bank or another company with which you’ve got an account. The message will ask you to click on a link in the email or open an attachment on the email to update your account information or verify something about your account.

Employment Scams

Employment scams are another common scam. They prey on the vulnerabilities of job seekers. The scammer usually sends a fake job offer to a potential victim and asks for personal information to process the application. The victim is then asked to pay an upfront fee, sometimes even before starting working for the company.

Unsolicited Checks Scams

The unsolicited checks scam is a popular type of banking scam because it can be executed quickly and easily. The scammer will send a check to the victim, then ask them to deposit it into their account and wire a portion of the funds to a third party.

The scammer will often promise the victim that they will get paid back for their trouble, but in reality, they are stealing from them. The reason this type of scam is so popular is because there are very few red flags for victims to look out for. They might convince them that they are actually doing something good for them or that there is no downside to the situation. They might also threaten the victim with violence or other types of blackmail.

Automatic Withdrawal Scams

Automated withdrawal scams are so popular because they are easier to execute than some other types of banking scams. For instance, this scam can be done with just some basic information about the victim, such as their name, address, date of birth, and social security number. The malicious actors convince the victim to give them their bank account’s login credentials and then use those credentials to make withdrawals from the victim’s account.

How to Avoid Banking Scams

As you can see, banking scams use many different methods to lure victims into giving up their money and personal information. Therefore, it is crucial for you to be aware that these scams exist and how they work to avoid them at all costs. Here are a few ways for you to avoid these scams.

Don’t Share Personal Information

The more information you share, the more likely you will be a victim of a malicious banking scam. Be careful when sharing your personal information on the internet. Scammers may use this to steal from you!

Don’t Forget to Read Carefully

Scammers will try their best to make everything look as professional as possible. However, sometimes they make mistakes. If you get an email or receive something in the mail, it’s important that you don’t forget to read things carefully so you’re not caught out.

Don’t Be Afraid to File a Report

When you are unsure about the meaning of something you’ve read or think it might be malicious, don’t be afraid to contact the company to check again. A simple call could mean the difference between you saving yourself the heartache and losing your money to scammers.

Do Be Aware of and Avoid High-Pressure Sale Tactics

Scammers will try to use high-pressure sales tactics to try and either confuse you into making a decision or not give you enough time to think about the offer. It is important to know your rights regarding sales tactics and remember that it is always okay to change your mind.

Do Use Your Best Judgement

In order to avoid getting scammed, it is important to exercise your judgment when you’re asked for sensitive information. You shouldn’t share anything with anyone unless they’re the ones who contacted you, and you know who it is. If it doesn’t feel right, don’t do it.

Don’t Click on Random Links

Never click on links that you receive in email or on social media that appear to be from a reputable organization or individual. These links will most likely take you to a scam site or will install malware on your computer and gain access to your information.

Do Research if You Need To

You can learn more about some scams by doing research. Research is important because it will provide you with the knowledge of what to look for and what to do in order to stop yourself from falling victim to banking scams.

Bottom Line

If you have been scammed, it is important to get in touch with your bank as soon as possible. This way, they can put a stop on your card and take back any funds that were stolen from you. They will also be able to provide you with a new card and cancel any suspicious transactions.

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