Source: 2019-20 Consumer Sentinel Report
Finance and banking scams are designed to deceive people into giving over sensitive banking information like PINs and credit card information or even facilitating remote access to your home computer to access your online banking via saved passwords.
Many scams are designed to steal money, making banks and financial institutions the primary end target. However, banking scams can often be part of broader schemes like identity theft, brand or government impersonation, or even "tech support" scams.
Some of the most common banking and finance fraud events involve credit cards, debit cards, and mortgage payments.
Credit cards are used as the primary transaction tool for online shopping and most in-store transactions. Most people will be familiar with the experience of lost, stolen, or compromised credit cards. Many stolen credit card numbers are for sale on the dark web.
Credit card details are vulnerable in many ways:
Home loans and mortgages are the largest single transaction that a customer will perform with the bank. As such, they provide an opportunity for scammers to try and intercept communications and get the settlement funds diverted to their own "escrow" accounts.
Debit cards that are linked to savings accounts pose a massive financial risk. For example, if you only have a single savings account and use a debit card for transactions with this account, the loss or compromise of a debit card (in the same way that credit cards are compromised) can expose your entire savings.
Direct attempts to defraud banks are widespread and mainly involve loans for things that don't exist, loans for items that have been overvalued, or loans for things that other banks have already loaned money for.
There are many sophisticated and terrifying techniques that people use to defraud banks. Examples include a couple featured on American Greed, whose plan was to use multiple banks to finance mortgages of the same value on the same property at the same time—all without any of the banks knowing each other's financing agreements.
Over $50 million in loans was stolen from local banks.
Many people who are involved in this type of fraud live by John Paul Getty's maxim:
John Paul Getty
If you owe the bank $100 that's your problem. If you owe the bank $100 million, that's the bank's problem.
Scammers often use the overpayment technique in online transactions on auction websites where they act as a purchaser to send a check for more than the agreed sale price. They wait for you to notify them of the error, and they ask for a quick return of the overpayment.
When you cash their check, the bank will take a few days and realize their check is fake or canceled, but you have already sent the money.
It's almost impossible to avoid being the target of an invoice or banking scam, but there are certainly best practices you can follow to keep your money safe.
Using credit cards, PayPal, and some other payment methods offer pretty good protection against scams and fraudulent activity. Most requests for payment via wire transfer, such as MoneyGram or Western Union, should be met with caution.
A Navy Federal scam text is going around looking to trick individuals into giving up their personal or account information. Here's what you need to know.
Dangerous text message scams are targeting Wells Fargo customers. These text message alerts for Zelle transactions or purchases with retailers are scams.
If you received a suspicious Capital One fraud text alert, it may be a scam. Learn how to spot the fake to protect your identity and funds.
Get a text regarding your locked banking account? It's likely a U.S. Bank text scam. Here's what you need to know to protect your identity.
Several versions of fake PayPal text messages are being sent to people worldwide. There are a few easy ways to tell which messages are scams and simple things you can do to protect yourself.
If you received a text message from Citizens Bank asking for personal information such as your password or login credentials, it may be from a scammer trying to steal your money.
If you receive a text message from American Express, don't click on any links or call the phone number listed—it could be a scam designed to steal your information and money.
If you receive a text message from Chase Bank, don't click on any links or call the phone number listed—it could be a scam designed to steal your information and money.
Escrow services are supposed to keep your money safe, but in this Craigslist scam, these escrow sites will do more damage than good.
If you've received a locked debit card text message from Citibank, it's likely a scam. Don't click on the link and delete the text message.
Learn how to spot the difference between a genuine and fake bank text and protect yourself from fraud.
Keeping your bank account and money secure isn't as simple as keeping your PIN a secret. Hackers and scammers find numerous ways to gain access to your funds.
Alliant Credit Union has several security protocols in place to help protect you from fraud and scams, including ways to recover lost funds or limit your losses.
There were tell-tale red flags of a scam all the way through the Netflix documentary, which could have helped the victims identify him as a scammer. Learn from these markers to avoid being a victim.
As a Navy Federal Credit Union customer, you're protected from hackers, imposters, and credit card fraud.
Jumping on a social media or entertainment trend isn't always a good idea, especially when it comes to cryptocurrency.
The number of people searching for the term "COVID vaccine 5G" on Google has just hit an all-time high, but there's one way to be sure that there are no microchips.
Social media platforms are possibly the most used tools in committing fraud, responsible for $770 million in losses.
The FBI is warning Americans about a new scam circulating in the country involving fraudulent QR codes in public places.
Fake Gucci, Chanel, and Louis Vuitton handbags and clothing were just some of the items found in a large shipment of counterfeit goods coming in from China.