7 Types of Bank Scams & How to Avoid Them
Stay cautious and safeguard your finances by familiarizing yourself with these common bank around scams and how to protect yourself from becoming one of the victims.
- Check-Cashing Scams
Picture sparking into the bank only to be approached by a much troubled complete stranger. The person begs you to help them by cashing a check because they have no account, and do not possess any form of identification. In their desperation, you agree to take their check, cash it and give them the proceeds. Where you are about to deposit the money, turns out that the check that you have is fake. This is because, more often than not, a bank will allow a customer to withdraw funds that have not yet cleared, and it will be days later before you realize the fraud when the check bounces. At that time, the con artist will be long gone and you will have the bill including the fees for overdraft or the returned funds inducing a check bill.
How to Avoid Check-Cashing Scams:
You know unfamiliar people, do not offer to cash their cheque. In case it is necessary to assist them, suggest ways how they can use a cheque without having a bank account.
- Fraud with Checks You Didn’t Ask For
While checking your mail, you find a check that comes as a surprise for a rebate or a refund you were not anticipating. Feeling wonderful about this unplanned riches, you decide to cash it almost immediately. If you do that, you may unwittingly consent to recurring debits by your account. Alternatively, a sweepstakes promotion goes around and a check is given only that you are required to remit certain amounts for “taxes” or other “fees”. After doing this, you find out the check was a scam.
Avoiding Unsolicited Check Fraud Will be A Little More Difficult:
Be careful. Whether communication has led to it or not, people may be amazed by the sight of money. And especially checks for any amount of money that comes unsought in the mail. Do accept postmarked checks that contrarily from important people are telling you where they don’t flew off to.
- Overpayment Scams
Online sellers are the primary victims of overpayment illumination fraud. A customer issues a buyer’s cheque as well as an estimate and also advises you to send back the balance. By the time you contact banks to stop the transactions, you realize the check is already cleared and end-users’ monies are still with you.
How to Avoid Overpayment Scams:
Don’t issue or receive a check for an amount other than what was originally communicated. Tell the buyer to resent the right amount of payment. Real buyers will do that but not the fraudsters.
- Deceptive Automatic Withdrawal Facilities
Under automatic withdrawal plan, you are attracted with something free, say a credit card or a trail for a product, but require your banking information. Scammers are often able to implement even the last one by collecting all your details overseas anyway, because once you intended to cancel the trial on time. They may happen anyway if the proposal was indeed dirty or the database was hacked from a poorly protected resource.
How to Protect Yourself from Automatic Withdrawal Scams:
Always refuse to offer your personal or financial details to unsolicited offers unless you initiated the transaction yourself. Shields against online threats should be used during online dealings and do not submit personal information unless, the site begins with ‘https.’ Any unusual transactions on your account, especially unauthorized ones should be followed up immediately.
- Phishing
You get a scary notification email or letter from your bank that because of suspicious activity, your account has been frozen. This makes you reach for the phone or a link to call and confirm the activity. However, this message is from a con man who wants to defraud you.
How to Avoid Phishing:
Beneath every email lies the vital sender address which should always be checked. If it does not feel right, do not reply to an email or open attachments or click any hyperlinks. Use the contact information and telephone numbers provided on your bank statements or the official website of your bank instead.
- Employment Scams
After responding to an ad, an ‘employer’ sends you a check to order or procure some supplies or even gift certificates. Once you do as requested, you realize that the check was fake and all that money is gone. A related scheme is one where a person is offered a job to test or review a wire transfer service although without any further payment, the same results are produced.
How to Avoid Employment Scams:
No credible company will ask you to return part of the upfront money at all especially in employment. In 99.9 % of the cases, if the employer gives out too much money even without formally appointing you, please be suspicious about the reasons.
- ATM Scams
It has been found that during the last few months Sharia-compliant banks have been targeted by fraudsters by making use of different ways:
- Card skimming: An attachment is fitted over an ATM which is used to record the users’ card details.
- False fronts of ATMs: A front cover of the ATM that is not operational is used to tempt you but is retrieved by the fraudster.
- Spy Within Or On The Line: If an individual is standing close to you at an ATM, they might be spying on using a hidden camera to record your pin, and then use the smuggler with your card.
How to Avoid ATM Scams:
Make sure that an ATM is checked to be working accurately and is not equipped with extra accessories that usually cover cards and read data like oversized card slots or brightly hued thin rectangles standing out. Check for obstruction and barriers, cover the numbers while typing the security code, and if someone keeps standing too close offer a suitable offense.
What to watch out for in a Bank Scam
Although there can be different types of bank scams, there are many factors and actions that may be pointed to as red flags for the scams:
- If It Is Too Good to Be True, It Usually Is: Never trust ‘wonders’ that come unexpectedly in the form of new opportunities.
- You Have to Do It Right Now!: Scammers often create a rush or restlessness in you to obscure your reasons.
- Cold Calls or Emails: Be careful of individuals who call or write with offers of free money or promotional prizes.
- Poor Construction- Typos, Name Phonetics Errors, Blunders in Sentence Structure or In any Communication: Professional communications do not have glaring mistakes.
- Appeals to Sympathy: In this case, the scammers aim at your feelings to cut off your rational justifications and prove their point.
Conclusions
If you have fall guy to a scam, you need to do the following things without hesitation:
Bounced Checks: While you may lose your money because of such a situation, I suggest that you get in touch with your bank and ask if they can waive these fees.
Stolen Information: You should report this to your bank if you notice such a suspicious transaction then report this to the FTC.
Mail Fraud: Should be reported directly to the postal service.
Unauthorized Withdrawals: Run to your bank and make them put a stop on it.
Wired Money: The only thing you can do is contact the wire transfer service.
Gift Card Payments: Only contact the issuer, and ask to refund any unused cards.
If you step up now, there is a slim possibility of recovering your loss. However, accept the fact that this will be a lesson learnt the hard way no matter how or what excuse is given as it is too late.
