The message may even mention suspicious activity on a personal account. Be wary of cashing any rebate or refund check you weren’t expecting. Then, they ask you to deposit the money in the bank and wire the difference back to you.

Scams will likely be around for as long as people continue to fall for them. The FBI reported that Americans lost more than $57 million in phishing scams alone in 2019. Have you ever received a check in the mail that you weren’t expecting?

It could look like a rebate check or a refund for overpayment. Job scams often come through emails, but scammers also target people by phone and mail. This is all a front to get your bank account information, though. The information they want includes passwords, Social Security numbers, account numbers and more.

Don’t share personal information. With the correct information, scammers can access almost every aspect of your life. Overpayment scams typically begin with someone sending you a counterfeit check or money order for more than the amount owed. They may also ask for bank account information so they can transfer commission payments to you. If you provide services or sell products online, you could fall victim to an overpayment scam.

Phishing emails and texts often look as if they are sent from trusted companies you may already know. The potential scams here, while specific to banking, are only part of the larger world of identity theft. There’s a chance that you are entering into a legally binding contract by signing the check and cashing it.

If an offer looks suspicious or too good to be true, it probably is. Scammers also like to take advantage of people’s kindness by impersonating charities. Use your best judgment. If something doesn’t feel right to you, don’t move forward—whether it’s giving out personal information or clicking on an email link.

Some scammers go so far as disguising the phone number, so it shows up as a local area code on your caller ID. Upon receiving the draft, your bank will transfer money from your checking account to pay the scammer. Bank scams are a common way for criminals to gain access to people’s personal and financial information. An individual approaches you outside of a bank or other financial institution asking if you will cash a check for them.

They call people asking for donations to a charity or cause. They may mention that they don’t have an account at this particular bank but need the money. Keep reading to learn about eight common bank scams and what you can do to protect yourself. The way this scam works is that individuals receive a phone call or postcard indicating that they’ve won a prize or qualified for a special offer. The goal is to get you to read off the numbers at the bottom of your personal checks.

Another scam involving checks is the check-cashing scam. You can protect yourself and your bank account by following the tips below. Once the scammer has your checking and bank information, they put it on demand draft, which is processed like a check but doesn’t require a signature.

You’re also out any funds you wired to them and the product if you shipped it. Scammers are counting on your blindly accepting the check as free money and cashing it. With phishing, scammers use texts and emails to trick individuals into giving up personal information.

The scammer may threaten to send you to prison if you don’t pay a supposed outstanding debt. Don’t cash checks for other people. You may want to help other people, but never cash a check in exchange for cash unless you know the person well. Your financial institution should offer a way to file a complaint if you suspect you are the victim of a scam.

The best way to avoid having your bank account or other personal information compromised is to be proactive in managing who has access to it.

8 Common Bank Scams (And How To Avoid Them)

p> You can sometimes spot charity scams by the vague claims they make and the lack of tangible ways your donations are used. Typically, phishing scams require you to click on a link and complete an action like confirming personal information. The same goes for offers from unverified sources that require bank account information in order to redeem or claim them. You receive a phone call from the imposter claiming you’ve won a prize that requires payment of taxes or fees so they can process it. Inspect the check thoroughly, paying close attention to any fine print on the front or back.

The reality is that you will never receive a call from a federal agency asking for payment of any kind. Whether it’s an email, text or arrives in another form, always read the fine print. They often play this off as a way to verify that you qualify for the offer.

This scam preys on the compassion and generosity of other people. Do your homework. Read and inspect everything. Phishing scams are popular because of the accessibility of reaching large numbers of people through email and text messages. Unfortunately, since the check was fake, you could owe the bank a returned check fee.

So, when the check doesn’t clear, the funds are held against your account. Scammers use various methods to trick people into giving up sensitive information like bank account numbers and passwords. Their goal is to access your personal accounts, such as email accounts and bank and other financial accounts. File a complaint. If you feel you’ve been the victim of a scam, report it to the proper authorities.

Avoid high-pressure sales tactics. Don’t accept sales pitches that pressure you to act quickly without first reviewing the fine print. Employment scams are another common way scammers try to gain access to people’s financial accounts https://cars45.com/listing/toyota/ipsum/2001. If you’ve never received a phone call from the FTC before, think about why you would receive one now. Because your bank accounts are the means by which you access and interact with so many aspects of your financial life, scammers are eager to seize an opportunity to expose any vulnerabilities related to your banking.

Avoid paying fees. If you’re sent any offers, prizes or job openings that require an up-front fee, chances are it’s a scam. Unless you pay close attention to your daily bank transactions, you may not notice the scam until much later. In some cases, job websites may unknowingly approve job postings that turn out to be scams.

Either way, it’s a scam because this isn’t a strategy used by federal agencies to collect payments. Another common bank scam is when someone pretends to be a government official. Automatic withdrawals are a great way to automate your savings, pay bills and more.

The scammer promises guaranteed work in exchange for an up-front fee. In 2020, the Federal Trade Commission received more than 2.1 million fraud reports from consumers. You can deposit the check and pull cash from your account to pay the person their funds.

Scammers also like to use fake names that sound like the names of legitimate charities. Scammers use tactics like this to get you to authorize memberships, loans and other longer-term commitments that could cost you dearly. Scammers like automatic withdrawals too, but for other reasons.

Never share account numbers, Social Security numbers, credit card numbers or passwords with anyone—unless you know the person or know it’s a legitimate request. Scammers may use a fake federal agency name like the National Sweepstakes Bureau or the names of real agencies, like the Federal Trade Commission (FTC). However, the clearing process can take several days.

The amount of your financial responsibility may depend on your financial institution’s rules and the type of account in question. This includes financial and other accounts, as well as stealing your identity.