Author: Valerie Madison
Scammers are finding new and improved ways to con people out of their money. One of the latest scams to hit the internet is pretending to be from the victim’s bank.
The scammers usually contact the victims by email, text message, or phone call, claiming that there has been suspicious activity on their bank account and request for personal information to complete a transaction or access the account.
To help protect yourself from this scam, it is important to stay vigilant and never provide any personal information to anyone unless you know and trust them.
Banks are Under Pressure to Improve the System
Will the situation improve in 2023? One can only hope that the pressure placed on banks and payment applications will lead to upgrades in consumer safety. The consumer is currently bearing a significant risk, and banks warn them to remain cautious.
While it’s great to advise people against giving strangers access to their payment applications, banks must do more to prevent crimes and secure customers from financial loss.
Warnings are Helpful, but More is Required
When criminals take advantage of the system, it is frequently claimed that the consumer should have known better. When it comes to financial theft and scams, we have reached a point where merely educating people about scam prevention is insufficient.
Customers should avoid speaking with anyone who texts, emails, or phones them, even if they identify as coming from a reputable organization like your bank or the Internal Revenue Service.
Immediately after hanging up, check your statement, and ensure all your private credentials are intact. Additionally, more measures are required to defend customers from fraudsters’ abuse.
Consumers’ Protection May not be as Strong as they Believe
Consumers may think they are protected from fraudulent activity by the Federal Deposit Insurance Corporation (FDIC), but this is not always the case. FDIC deposit insurance does not cover losses due to theft or fraud.
In the event of an unauthorized transfer from your bank account, you should contact your bank right away and ask them to reverse the transaction.
You should also report financial crimes and fraudulent activities to the police or your local FBI office and report any internet phishing attempts to the Anti-phishing Working Group.
Additionally, you can file a complaint with regulatory agencies such as the Federal Trade Commission (FTC), even though they generally do not resolve individual consumer complaints. This serves to help law enforcement agencies detect patterns of criminal activity, open investigations, and pursue prosecutions.
The best way to protect yourself against scams is to arm yourself with knowledge. Visit the FTC’s Bureau of Consumer Protection and perform a keyword search to learn about other scams. Additionally, read up on common types of scams and identity theft and how to spot them.
One scam that banks watch for is fraudsters pretending to be impersonators. This can happen in two ways: through phone scams and email scams. If you’ve received a suspicious email or phone call, don’t respond without first checking with your bank. They will be able to help you identify the scammer and take appropriate action. In the meantime, keep track of your account activity and any changes to your payment information. That way, you can avoid being scammed.