Online banking has revolutionized the way people send and receive money. Unfortunately, with every innovation in the banking industry, cybercrimes and fraud become more sophisticated than ever. Scammers are using new tricks to steal personal information and money.
The solution? Beware of common banking scams and learn to protect your hard-earned money. And this guide will help you do exactly that. Keep reading to learn how to avoid online bank scams.
Overpayment Scams
If you sell products online, chances are you’ve come across this scam at least once. It goes like this: A scammer (posing as a customer) sends you a fake payment for more than the agreed price. Then, they’ll pressure you to quickly refund the extra payment. The catch? They ask you to send the difference via a hard-to-trace method, such as a wire transfer.
Days later, you find out the customer’s original payment was fake, and the money you refunded is gone.
Phishing Emails and Texts
Phishing scams aim to trick you into revealing sensitive information, such as account numbers, passwords, or OTPs.
In most cases, a scammer sends you a fake email or text message pretending to be your bank. The message might say something urgent like “Your account has been locked,” “We have detected suspicious activity,” or “Someone’s trying to log into your account.”
Whatever the message, they’ll try to get you to click a link. If you click on it, you’ll be directed to a fake website or a customer service line. The fake website will ask for personal details, like your debit card PIN, and use them to steal your money.
Vishing Scams
Vishing scams are also pretty common. You’ll receive a phone call from a scammer pretending to be your bank, government, or employer. They’ll even manipulate the caller ID to show your bank’s real number or a local area code.
Vishing scams are primarily used to steal information. They’ll ask for your full card number, CVV, or online banking app login details.
Remote Access Scam
This is a type of fraud where a scammer tricks you into installing software that lets them control your computer or phone. The scammer might reach out via phone and pose as bank staff or tech support. They even repeat your personal information (perhaps from a prior minor data breach) to sound legitimate and build trust.
Once you download remote access software, they might direct you to log into your online banking and transfer funds.
How to Protect Yourself
Follow these tips to protect your hard-earned money:
- Never grant remote access to a caller, no matter how legitimate they sound.
- Hang up immediately if you receive unsolicited requests for personal or bank details. An online bank like SoFi would never ask you to verify personal information via email, messages, or phone.
- Verify independently. Call your bank using the number mentioned on their website.
- Watch out for signs of online banking fraud. You might notice a sense of urgency or panic from the caller, who is trying to rush you into making decisions.
