Kinda Frugal posts may include affiliate links and is a member of the Amazon Services LLC Associates Program. If you make a purchase using one of these Amazon links, I may receive compensation at no extra cost to you. See my Disclosure Policy for more information.
With malicious actors and increasingly sophisticated attacks on the rise, your finances need protection. Understanding common banking scams can help you stay alert when faced with potential fraud.
5 Common Scams Targeting Your Bank Account
As technology develops, bank account scams are becoming more common. Fraudsters use various tactics to get access to your money or personal information.
1. Government Impostor Scams
In a government impostor scam, a scammer poses as a government agency, such as the IRS, Medicare or the FBI. They will call, text or email you about supposed debts and threaten you with jail time if you don’t pay up.
These scams have led to significant financial losses. In 2024, people in the U.S. lost over $405 million to these types of schemes.
2. Phishing Scams
Phishing scams have grown increasingly common over the past few years. In 2021, they caused 90% of security breaches worldwide.
It usually involves the scammer sending you a text message or email posing as a legitimate institution, like a bank or a service provider. These messages often sound urgent and tell you about a potential breach or an unauthorized transaction. The scammers will ask you to click a link to “resolve” these issues.
However, once you click these links, the scammer will gain access to your information through a form or a piece of malware that automatically downloads to your device.
3. Fake Check Cashing Scams
Bank account scams can also happen in person. In a fake check-cashing scam, the scammer waits outside a bank and asks you to cash a check for them. They might say they forgot their ID or don’t have an account. You then cash the check for them and give them the money.
However, the bank will soon realize it was a bad check and won’t clear it. Since a teller has already given you the money, the bank will take the amount out of your account.
4. Charity Scams
Fraudsters can take advantage of people’s generosity in several ways. A charity scam involves them posing as a charitable organization and asking for donations. They usually try to scam people after a natural disaster or another high-profile issue, taking funds away from people who legitimately need them.
5. Employment Scams
Job seekers can be especially vulnerable to bank account scams. Swindlers could pose as potential employers and ask for personal information, such as your social security number, bank details and ID. They then use this information to access your accounts. This scam sometimes takes the form of supposed employers asking for a fee to secure your job offer.
How to Keep Your Account Secure
Bank scammers can be clever, but taking some proactive steps can minimize your risk. Try these tips to protect your information and finances.
Use Strong Passwords
Avoid using simple passwords or reusing old ones, as they could easily get compromised. A mix of letters, numbers and special characters usually do the trick. A password manager can help record passwords — even the complicated ones — while keeping them safe.
Enable Multi-Factor Authentication (MFA)
MFA adds an extra layer of security when logging into your account. It usually takes the form of a code sent via text or email or a security question to which only you should know the answer. Even if someone gets your password, they won’t be able to log in without that second verification method.
Regularly Monitor Account Activity
Set aside some time every week or month to review your account activity. Check your transaction history. If you see activity or transactions you don’t recognize, report them to your bank immediately.
Be Wary of Finance-Related Communications
Scammers often impersonate banks through emails, text messages or phone calls. These messages can urge you to click a link or resolve a fake issue. Never click links or download attachments from suspicious messages. If you’re unsure, don’t reply and instead contact your bank directly.
16 Ways To Spend Less Money on Groceries
Stay One Step Ahead
Scammers use confusion, fear and a false sense of urgency to trick people into handing over their personal information and money. However, awareness and some basic precautions can help you stay in control. Set up the proper safeguards, be skeptical, and take time to read the fine print to keep your data and bank accounts secure.
