The most reported text message scam in the US Federal Trade Commission’s recent revelation is bank impersonations. The number of reported bank impersonations by text in 2022 increased 20-fold compared to 2019. According to the FTC, American consumers lost over US$330 million to text message scams in 2022, which is not covered by the Federal Deposit Insurance Corp or National Credit Union Administration.
Despite banks being a safe place to store money, there are some basic precautions individuals can take to protect themselves from falling victim to bank-impersonation text scams. Here’s how you can safeguard your money from text message scams that impersonate your financial institution.
Avoid making money moves under pressure
Scammers will try to make you feel compelled to take immediate action, putting your money at risk. They may send urgent messages urging you to call or click on a link due to alleged suspicious activity. “Any type of pressure tactic is not legitimate – that is not your bank,” warns Paul Benda, SVP of Operational Risk and Cybersecurity at the American Bankers Association. It is important to avoid making financial decisions when feeling scared, stressed, or pressured.
Do not click on links in unsolicited text messages
If you receive an unexpected text message, exercise caution, especially if it appears to be from your bank. According to a recent poll conducted by Security.org, 66% of respondents reported receiving suspicious texts from unknown senders, and about 20% clicked on links sent by strangers, which is never advisable. “Look at any type of unsolicited communication very cautiously,” advises Benda. In 2022, scammers frequently impersonated major banks such as Bank of America, Wells Fargo, Chase, and Citibank.
Avoid calling phone numbers received in text messages
Similar to clicking on links, it is essential to refrain from dialing or clicking on phone numbers from text messages. Instead, find the official phone number on your bank’s website or mobile app. Initiate contact using the bank’s official phone number to ensure you are speaking with a legitimate representative and verify whether there is a genuine issue. “Making that phone call can be the difference between getting scammed versus not getting scammed,” says Tremaine Wills, founder of Mind Over Money.
A specific text scam type in 2022 resulted in a median loss of US$3,000. This scam involved a person impersonating your bank and instructing you to reply “Yes” or “No” to confirm or deny a suspicious transaction. The scammer would then call to offer assistance, with the ultimate goal of fraudulently transferring funds or obtaining personal information like a Social Security number.
What to do if you fall victim to a scam
If you are unfortunate enough to fall for a text scam impersonating your bank, there are crucial steps to follow. First, notify your bank about the incident, seeking their assistance in preventing further fraudulent money transfers. Next, report the scam to local law enforcement, as these initial actions are fundamental in recovering any wrongfully taken money. Malaysians can contact the National Scam Response Centre’s (NSRC) 997 hotline to enable authorities to take necessary actions, including freezing involved bank accounts and mule accounts used by scammers. Additionally, you can report and block suspicious text messages through your messaging app.
Being aware of your account activity is integral to protecting your money from scams. “Have a regular practice of knowing what’s going on with your account,” advises Wills. Uncertainty about your account increases the likelihood of being alarmed by a text message claiming to be from your bank. – AP
(In 2023, Security.org conducted its internet-based poll about experiences with online scams. The participants were 1,026 American adults who represented the US population based on their genders, regions, and ages.)
Credit: The Star : News Feed
