Outsmarting Scammers: Essential Tips for Bank Customers

Title: Outsmarting Scammers: Essential Tips for Bank Customers

In the age of rapid technological advancements, the art of scamming has evolved into numerous sophisticated forms. Aidee Gonzalez, a call center representative at a major bank, notes, "Most customers are not scam aware," she laments, revealing a pressing need for heightened awareness and education in this area.

In 2021 alone, the Federal Trade Commission received over 2.8 million fraud reports from consumers, and reported fraud losses increased by over 70% from 2020, reaching a staggering total of over $5.8 billion (Federal Trade Commission, 2022). The following year, banks noted a significant increase in online fraud (Payne & Whiteman, 2023).?

One popular scam catching customers off guard is the overpayment scam, which involves the scammer overpaying for a product or service with a fraudulent check, and then requesting the surplus funds to be returned, usually via a wire transfer or gift card. By the time the bank identifies the original check as counterfeit, the 'refund' has already been sent, leaving the customer out of pocket. In a newer variant of this scam, scammers even send “email proof” and screenshots of transferring money to the customer.

**Understanding the Tactics**

Scammers employ a variety of tactics to manipulate their victims. They often create a sense of urgency, incite fear, or propose deals that are too good to be true. Recognizing these strategies can equip you to identify potential scams.

**Stay Safe: Top Tips for Bank Customers**

1. Never share personal information: Your bank will never solicit sensitive information like your PIN or online banking password via phone or email. If you receive such a request, it's likely a scam.

2. Avoid clicking on unsolicited links: Phishing scams, where scammers trick victims into revealing personal information through seemingly legitimate emails, are increasingly common. Always verify the source before clicking on any links.

3. Be wary of overpayments: Be skeptical if you receive a check that exceeds the agreed-upon amount.

4. Always confirm transactions: If you're asked to make a payment to an unfamiliar account or in an unusual manner, double-check the details with your bank before proceeding.

5. Be alert to pressure tactics: Scammers often create a false sense of urgency to push you to act quickly, without thinking. If something doesn't seem right, it probably isn't.

Scammers are also resorting to dubious website scams and text/email scams. In the former, customers purchase something from a questionable website only to regret it later. The latter lures customers into clicking a link or returning a call under the guise of a pressing matter. The linked website or number typically leads to a fraudulent site where they unwittingly share their personal information.

**Educate Yourself**

Being scam-aware goes beyond knowing what to look out for; it's also about proactively educating oneself. Reach out to your bank for advice, utilize online resources, and keep yourself updated on the latest scam trends. In a world where even renowned institutions like Bank of America have been fined over $250 million for illegal practices (Faguy, 2023), it's clear that vigilance is our best defense.

The world of scams is intricate, but through vigilance, asking questions, and refusing to share personal information, bank customers can better protect themselves from these unlawful activities. The goal is to help more bank customers become scam-aware, and through shared knowledge and heightened awareness, we can all contribute to this endeavor.

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**References**

Federal Trade Commission. (2022). New Data Shows FTC Received 2.8 Million Fraud Reports from Consumers in 2021. Retrieved from https://www.ftc.gov/news-events/news/press-releases/2022/02/new-data-shows-ftc-received-28-million-fraud-reports-consumers-2021-0

Payne, K., & Whiteman, D. (2023). Common Bank Scams (And How To Avoid Them). Forbes. Retrieved from https://www.forbes.com/advisor/in/banking/common-bank-scams-and-how-to-avoid-them/

Faguy, A. (2023). Bank Of America Fined $250 Million Over Fake Accounts And Illegal Junk Fees. Forbes. Retrieved from https://www.forbes.com/sites/anafaguy/2023/07/11/bank-of-america-fined-250-million-over-fake-accounts-and-illegal-junk-fees/?sh=6ec533660207

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