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Explore The Various Types of Banking Scams Taking Place in Current Times

Category: Banking Scam
Length: 22 Pages
Reading Time: 30 Min

Excerpt: Banking fraud is very common now and scammers and fraudsters are seeking new ways to manipulate individuals to share their banking information online.

April 6, 2022

Introduction

Have you ever wondered what banking fraud is and what are the different types of banking fraud? If you have, this article is for you! Banking fraud mainly occurs when someone tries to illegally obtain money, property, or other assets from a bank or any other financial institution by posing as a bank or a financial institution. There are several types of banking fraud that have been discussed in the article. Recently, due to the pandemic there has been a sudden surge in banking frauds and other types of cybercrime activities. There have been several predictions that regulatory frauds and payment frauds will increase and it is crucial for people to keep their financial information to themselves.

Banking fraud is very common now and scammers and fraudsters are seeking new ways to manipulate individuals to share their banking information online. This might be through phone calls, messages, emails, or third-party links.This article discusses the eight most common types of banking fraud and talks about how to avoid these types of fraud. Take this article as a sign to ensure that your banking information and all other privileged financial information are private. Nowadays, fraudsters have gotten very innovative and the rate of banking scams is continuously increasing all across the globe.

Only about 13% of scam victims actually report the scam. It's discovered that in 2020 Australians lost over $634 million.

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Table of Contents

CHAPTER 1: Why Is There Such a Sudden Rise in Banking Scams?

bank building

There has been a sudden rise in banking scams and I’m sure we’re all aware of the main reason why banking scams have rapidly increased. Over the past year, digital fraud including banking scams are on the rise. It might be shocking for many people as to why exactly these types of scams are increasing worldwide. Let’s discuss the main reasons for the sudden rise in banking scams. This includes the following reasons:

1. The global pandemic

The sudden unexpected rise in banking fraud and banking scams is attributed to the global crisis of Covid-19. You might be shocked to hear this but this in fact is very true and the global pandemic did in fact increase the overall rate of banking scams. 

This is primarily because hackers took advantage of the chaotic situation and they took advantage of it by committing more hacking and other types of scams. This includes stealing stimulus checks granted by the government, stealing unemployment benefits, collecting payments for so-called Covid-19 treatments and vaccines and tricking people into donating to fraudulent charities, and secretly plotting on identifying and figuring out new ways to fraud and scam people. 

There were almost 1.1 billion fraudulent and scamming attacks on citizens in the U.S. in the first half of the year 2020 and it was reported by the federal trade commission that American citizens have lost approximately 145 million US dollars thanks to Covid-19 related banking scams.

2. Online payment systems

gpay online

This is yet another reason for the rapid increase in banking scams. Consumers have shifted to transacting more money in online marketplaces and the consumers have started using E-wallets, peer-to-peer payment, and online digital banking accounts. These applications have become immensely popular in the USA, Asia, and Europe which have resulted in an increase in banking fraud. 

The users normally use these online payment platforms to split the money with their friends, send money to their families and pay for online services. As a result of these online transactions, there has been a sudden increase in the rate of fraud, and fraud risks have increased immensely.

3. New and sophisticated fraud tactics

This is yet another reason for the increase in banking scams. These scammers are always one step ahead of everyone else. There has been a sudden increase in data breaches during the past year and due to this these scammers can easily gain access to privileged information. These use this private and confidential information against people and they use this data to create fake identities that are insanely difficult to detect. After creating these synthetic identities they can easily create bank accounts and are eligible for getting cards.

online wallet

They are mainly pretending to be legit and legal customers while in reality they’re impersonating an individual and stealing their identity.  Once these fraudsters have established a strong credit history they ask for higher credit limits and larger loans and then simply don’t pay.  

Since the identity is based on your own personal information the customers or the people whose identity had been stolen get into information trouble while these scammers escape. In addition to this, these scammers and fraudsters leverage information for account takeover which has been predicted to result in losses of more than 200 billion dollars in 2020-2024.

4. Technological advancements

This is the most evident and the primary reason behind banking scams. We live in an age of technology and everything is automated and there are endless advancements in this sector. There are new and upcoming technologies that allow scammers to easily scam people. There are so many new technological advancements and inventions that have made it easy to hack a bank account and gain all the private information.

busy on computer

Scamming and bank fraud is easier than ever with tons of data being available online and countless information being exposed in a minute. This is the main reason for the sudden rise in banking scams as fraud can easily occur now. These scammers hack into your system and steal your banking information such as account passwords, address, parents information, personal information, financial information and the passcodes and can easily commit banking fraud. They can use all of this information to open a new card or to carry out online transactions and payments which are only possible due to the rapid advancements in technology.

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CHAPTER 2: The Most Common Types of Banking Scams in 2022

Overpayment scams

paying dollars

Let’s talk about overpayment scams and what they mainly are. If you are involved in selling products online or providing services you can easily fall prey to overpayment scams. These scams start with the person sending you fake money for more than the actual amount. 

They come up with a reason for why the money is more than the actual amount and then they request you to deposit the money in a bank and send whatever difference back to them. Usually, the scammers send much more than the actual amount to take maximum profit and gain the maximum amount of money.

The check that they give to you is counterfeit and by the time you send them the money they block you and you get a notification from the bank about the fake check. In this case you might owe the bank a returned check fee and you just send them money and by this time you’ve also provided the service or sent the product. Now you’re in a real problem because you just lost two things and got scammed and you owe the bank for something you were oblivious of.

How do they work?

paying in counter

Alright let me guide you through the main operations of these scams and how they work and operate.  This scam primarily works whenever you’re selling  something online or you have an online website which you use to sell goods. 

This is the primary way through which you can be targeted for overpayment scams.  The scammer or fraud will contact you through your social media page or your website and will make a generous and huge offer on the product which might seem a little absurd. They’ll offer to receive this money through a check or a credit card. The payment that they send you will be for an amount that’s far greater than the actual amount. 

I hope you’re catching on to how this works!  Now after they send you this payment they’ll start apologising for the overpayment and they’ll make several excuses for the overpayment. They’ll come up with excuses such as this money was used to pay for an agent’s cost or to cover the shipping expense and cost.

They can go as far as saying that they made an error while offering this online payment. Then they’ll ask you to give them a refund of the difference or the excess amount that they sent you and they’ll ask you to forward this amount to a third party. The scammer will trick and manipulate you into sending this payment online or through a wire transfer. Once you transfer the entire amount you’ll soon discover that the cheese that they send you is fake and it got rejected. This is the part where you’ll realise that you’ve been scammed and that you lost tons of money. Most experienced scammers do this scam with larger amounts and other scammers scam people with lower amounts.

counting bills

They start at lower rates and they shift to scamming people for millions or thousands of dollars. These scammers are very manipulative and they’re insanely evil. They can easily trick and manipulate you into thinking that they made an actual mistake. Please don’t fall for their fake excuses; they’re just trying to manipulate you into thinking they’re right and into believing their story.  

They’ll even go as far as to send you fake receipts and pretend to pay you but when you realise the cheque bounced and you got scammed it’ll be too late. Trust me when I say these hackers are extremely smart and manipulative and they can easily carry out all such overpayment scams without you even knowing. These scammers come up with countless reasons and excuses to trick you.

Why are they risky?

There are several reasons for which this type of banking fraud and scamming is risky. Baking scams and fraudulent activities are very risky and they are harmful to an individual. These banking scams make use of the private and confidential information of the user and this includes information that is supposed to be with the individual. This private information includes banking passwords, addresses, patents information, security codes, pin codes, and passwords of your account and it also includes information such as your name, date of birth, employment status, and salaries which are all supposed to be privileged information. 

All types of banking frauds and scams leverage this private information and these scammers hack into the system to use this information to make fake identities and to use this to steal money, conduct online transactions and go as far as developing an entirely new personality which uses credit cards and the credit history of the victim is being ruined.

caution

The scammers hack into the system and can easily obtain all this private information in just a matter of a few seconds. This is how fast and experienced these scammers are due to advancements in technology, new and sophisticated scamming techniques and due to the sudden rise in online banking activities. All these types of activities damage the credit history of the individual and expose them to being liable to banks and being accountable for a crime they didn’t commit. These frauds and hackers manage to go months without anyone noticing and you might not even realise your system has been hacked. 

This is due to the rise in online banking platforms which has encouraged hackers to hack the systems and gas also made it easier to hack into a bank account. The hackers can easily access your bank account and if you’ve saved your password on your phone just know that your bank balance is now at the mercy of these hackers. Storing your information in your phone is the riskiest thing you can do as it exposes you to a high number of risks.

Check cashing scams

check signing

Check cashing scams are yet another type of bank frauds which involve checks. These scams mainly prey on innocent people who are generous and compassionate. This scam is also widely used because many innocent people fall victim to these scams. So what happens is that a person approaches you outside a bank and they request you to cash a check for them. 

They make up a story that includes them not having a bank account in this bank and them needing the money urgently. The victim falls into this sob story and deposits the check and then withdraws the cash from their account to pay that person. Since check clearing isn’t done immediately and it takes time the scammer scams the innocent person and by the time they’ve vanished and several days later the check doesn’t clear. This is when the victim realises that they’ve been scammed.

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How do they work?

You might be wondering how check cashing scams work and how exactly these scammers use fake checks to scam tons of people. Lemme tell you how these scams work . These scams primarily take place when a person who is the scammer asks you to deposit a check and sometimes this check can be for thousands of dollars. Now check cashing scams can take place in multiple ways. 

The first way is a scammer approaching you outside a bank and asking you to get a check deposited because for some reason they can’t. They ask you to deposit that check into your account and pay them. Now the innocent victim makes the transaction and falls for this scam. Once the scammer gets the money they vanish and next day you realise that the check was fake and you’ve been scammed. Now this is one way to check cashing scams there are several others.

check sample

Now check cashing is sometimes similar to overpayment scams but it involves the scammer sending a check over to the victim. The scammer sends a check which is obviously fake to the seller. This check is for an excess amount and once they send the victim this check they ask them to wire the difference. Now it takes a few days for a check to be cleared and deposited and by that time the scammer has manipulated and tricked the individual. Now let me break this down for you. 

Now this mainly works in a unique way. I’m sure whenever you go to deposit or cash a check the bank says it’ll take a few days. There’s a reason for why it takes 2-3 days for the check to clear. If a check is drawn from another financial institution then it is sent to a clearinghouse which is generally operated by the federal reserve board.  This check then travels to the financial institution and then it is analysed by the banking professional to determine if it’s legitimate or if it’s a fake check. 

Now there’s a catch: you can view these funds from your account but that doesn’t necessarily mean that these funds are deposited into your account and that these funds are valid.  Even when this check system is automated it can take over 2 weeks or more to actually clear the check and declare its legitimacy. 

There are several types of check cashing scams and these scammers use several disguises for conducting this type of fraudulent activities. This includes fake prizes, paying you to be a mystery or a secret shopper or sending you more than the necessary item. Now there’s one way you can easily identify check cashing scams which is whenever a stranger sends you a check for a greater amount and then asks you to send the difference back to them.

dollar on fire

That ladies and gentlemen is a clear giveaway and is a major red flag. So now whenever a stranger asks you to do this you better know that it’s a scam and that person is a verified fraud. Please don’t fall for these types of scams and fraudulent activities. It’s actually very easy to scam people because they ignore the red flags. 

Scammers have become insanely smart and can easily scam you within seconds because they are experienced and they have an excellent tactic and strategy of manipulating and persuading people. These scammers have excellent excuses and can easily trick you because they have already scammed tons of people. So beware of these fraudsters and know better!

Why are they risky?

There are several reasons for which this type of banking fraud and scamming is risky. Baking scams and fraudulent activities are very risky and they are harmful for an individual. These banking scams make use of private and confidential information of the user and this includes information that is supposed to be with the individual. This private information includes banking passwords, addresses, patents information, security codes, pin codes and passwords of your account and it also includes information such as your name, date of birth, employment status and salaries which are all supposed to be privileged information. 

All types of banking frauds and scams leverage this private information and these scammers hack into the system to use this information to make fake identities and to use this to steal money, conduct online transactions and go as far as developing an entirely new personality which uses credit cards and the credit history of the victim is being ruined.

scam

The scammers hack into the system and can easily obtain all this private information in just a matter of a few seconds. This is how fast and experienced these scammers are due to advancements in technology, new and sophisticated scamming techniques and due to the sudden rise in online banking activities. 

All these types of activities damage the credit history of the individual and expose them to being liable to banks and being accountable for a crime they didn’t commit. These frauds and hackers manage to go months without anyone noticing and you might not even realise your system has been hacked. This is due to the rise in online banking platforms which has encouraged hackers to hack the systems and gas also made it easier to hack into a bank account. 

The hackers can easily access your bank account and if you’ve saved your password on your phone just know that your bank balance is now at the mercy of these hackers. Storing your information in your phone is the riskiest thing you can do as it exposes you to a high number of risks.

Unsolicited check fraud

This is yet another creative way of scamming people and is widely used by scammers. This scam is very odd since the victim gets a check in the mail which was totally unexpected. This check resembles a refund for overpaying. In such cases it is crucial for the victim to inspect the check thoroughly, use a magnifying glass if you have to but for god’s sake don’t fall into this trap. 

counting dollars

If you do you might enter a legally binding contract after signing this check. Fraudsters and scammers use this trick to manipulate victims into authorising loans, memberships and several other long term commitments that will damage you and your bank account severely. The scammers are waiting for you to sign the check and cash it. Once you do that you’re doomed! So beware and never cash checks that you were not expecting.

If you were scammed and got your money stolen from a banking scam, then contact us to get your money back for you!

How do they work?

Now you must be aware of the implications of check fraud. It is amongst the most common and most dangerous types of baking frauds. This type of scamming is widespread and there are countless types of check frauds. So you might wonder what it is and how it works? So check fraud mainly refers to any and all efforts to obtain money illegally using paper or making use of digital checks. This includes someone writing a bad check into their own account, forging a check in someone else’s name or drafting a completely fake check. There are several different types of check frauds, let’s go over each type one by one.

money roll

The first type is paper hanging which mainly includes an account holder purposely writing bad checks into their own accounts. The second type is check kiting which is mainly when an account holder writes bad checks and deposits it into other accounts to create an illusion of a balance of the second account. The third type is check floating which primarily means when an account holder writes a check to another person in an attempt to buy more time before they deposit funds into their account. The fourth type is check forgery which by its name means when someone forges a signature on a check. 

Other types include check theft which is mainly when someone tries to steal someone else’s paper check. They use this paper check to pay for several types of goods and services and then deposit these goods and services into their own account.

Identity theft is yet another common type of check fraud which includes stealing someone’s identity and opening up an account in their name and writing checks from that account. Chemical alteration is a more advanced and a more sophisticated type of check fraud. This primarily includes a scammer or a thief using chemicals to erase ink on a check so that they can write something else. They might use these chemicals to erase the names of certain individuals and a scammer may also use these chemicals to change the amount on a check. 

Counterfeiting is yet another common way of check fraud which includes a scam artist stealing someone’s information and printing it onto a number of checks to use in their account. Lastly, money order fraud is yet another scamming technique. This mainly involves a scammer convincing the victim to give them a check in exchange for a money order and when the victim deposits the money order into their account they can easily discover it’s fake.

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Now you might be startled and shocked after seeing the countless check fraud methods. Trust me these are only some of the popular ones. Scammers continuously upgrade and update their scamming methods to scam people. They work on new and more effective methods each year. Tons of people are victims to check fraud and many have lost millions and thousands of dollars. Trust me these scammers are very manipulative and they are 10 steps ahead of all of us. 

Please avoid giving your private and confidential information to anyone whether it’s a phone call, email, text message or an instant message. You’re going to be a victim of check fraud if your confidential information leaks and gets into the hands of a scammer. So please beware and save yourself from these ruthless scammers.

Why are they risky?

There are several reasons for why this type of banking fraud and scamming is risky. Baking scams and fraudulent activities are very risky and they are harmful for an individual. These banking scams make use of private and confidential information of the user and this includes information that is supposed to be with the individual. This private information includes banking passwords, addresses, patents information, security codes, pin codes and passwords of your account and it also includes information such as your name, date of birth, employment status and salaries which are all supposed to be privileged information. 

All types of banking frauds and scams leverage this private information and these scammers hack into the system to use this information to make fake identities and to use this to steal money, conduct online transactions and go as far as developing an entirely new personality which uses credit cards and the credit history of the victim is being ruined.

fraud

The scammers hack into the system and can easily obtain all this private information in just a matter of a few seconds. This is how fast and experienced these scammers are due to advancements in technology, new and sophisticated scamming techniques and due to the sudden rise in online banking activities. 

All these types of activities damage the credit history of the individual and expose them to being liable to banks and being accountable for a crime they didn’t commit. These frauds and hackers manage to go months without anyone noticing and you might not even realize your system has been hacked. This is due to the rise in online banking platforms which has encouraged hackers to hack the systems and gas also made it easier to hack into a bank account. The hackers can easily access your bank account and if you’ve saved your password on your phone just know that your bank balance is now at the mercy of these hackers. Storing your information in your phone is the riskiest thing you can do as it exposes you to a high number of risks.

Automatic withdrawal scams

As convenient as automatic withdrawals are for you, scammers find this system very convenient as well. This scam operates in yet another unique way which includes an individual getting either a call or a postcard that states that they’ve won a prize or something big which they weren’t even expecting. The plot is classic and people who still fall for this need to stop thinking that Mary Poppins showed up at their doorstep. The main goal is to have you read the bottom numbers of your own checks because they are apparently verifying if you have qualified for the prize or not.

man into atm

This is their tactic and trick to check your banking information and note down your number. Once they get their hands on this information they play it off as a demand draft which is also another type of check but it doesn’t require any sign yet. Once the bank gets this draft they will transfer money from your account to pay this fraudster. You might not even realize what is happening unless you closely monitor your daily baking transactions. This is why you should have digital applications of your bank and you should turn your notifications on to catch this fraud. Digital banking allows you to have a record of your transactions and you get daily messages of any new transactions. If you don’t then you might not realize it and when you do it’ll be too late.

How do they work?

Now what are automatic withdrawal or automatic debit scams? Let’s go through these scams and what they are. Automatic debuting of your account is mainly a legitimate payment method however several scammers use this to scam people. The system is abused by several fraudulent telemarketers. Now let’s talk about how these scams take place. You can either get a postcard or you’ll get a telephone call that states that you’ve won a huge prize and now you can qualify for a credit card.  Now the scammer will ask you to read the numbers off your check and they won’t tell you why this is needed but in some cases they do and they’ll just tell you that they need this information for you to qualify for the prize. 

atm withdraw

Once they have your checking account information they can easily put it on a demand draft and process it like a check. This draft will have your name, account number and will state an amount. This draft unlike a check won’t require your signature and once the bank receives this it’ll pay the scammer who’s pretending to be a telemarketer. You won’t even realize that the bank has paid this draft until you get an actual bank statement. It is that easy for a scammer to use your private information and send themselves money. I know it’s impossible to believe but tons of people have lost hundreds of dollars in such scams. They make the offer sound so believable and they always say that you’ve won a prize or the lottery and they need your information for you to apply for the offer.

Why are they risky?

There are several reasons for which this type of banking fraud and scamming is risky. Baking scams and fraudulent activities are very risky and they are harmful for an individual. These banking scams make use of private and confidential information of the user and this includes information that is supposed to be with the individual. This private information includes banking passwords, addresses, patents information, security codes, pin codes and passwords of your account and it also includes information such as your name, date of birth, employment status and salaries which are all supposed to be privileged information.

1 dollar

All types of banking frauds and scams leverage this private information and these scammers hack into the system to use this information to make fake identities and to use this to steal money, conduct online transactions and go as far as developing an entirely new personality which uses credit cards and the credit history of the victim is being ruined. 

The scammers hack into the system and can easily obtain all this private information in just a matter of a few seconds. This is how fast and experienced these scammers are due to advancements in technology, new and sophisticated scamming techniques and due to the sudden rise in online banking activities.

All these types of activities damage the credit history of the individual and expose them to being liable to banks and being accountable for a crime they didn’t commit. These frauds and hackers manage to go months without anyone noticing and you might not even realize your system has been hacked. This is due to the rise in online banking platforms which has encouraged hackers to hack the systems and gas also made it easier to hack into a bank account. 

The hackers can easily access your bank account and if you’ve saved your password on your phone just know that your bank balance is now at the mercy of these hackers. Storing your information in your phone is the riskiest thing you can do as it exposes you to a high number of risks.

Phishing scam

guys using his laptop

Phishing scams involve scammers using emails and text messages to manipulate you into compromising your personal information. This personal information can include passwords, social security numbers, bank account details, address and parents details. Their main motive is to gain access into your personal accounts for example your bank account or your email. Phishing scams are very popular because they are very accessible and the scammer is able to reach a wide range of audience through text messages or emails. 

It is reported that almost 57 million US dollars were lost in phishing scams in 2019. These emails and text messages are carefully curated and they seem like they’re from actual trusted companies or proper organisations. These emails look like they are true and many people fall into this trap. These scams involve you clicking on a link and then you enter your personal information. These phishing scams normally use third party links and they can look believable but please do not fall for this. Keep your personal information to yourself.

How do they work?

typing on laptop

Phishing is primarily a type of attack that is socially engineered and allows a scammer to easily steal private and confidential user information and data which includes login credentials and the  credit card numbers. It primarily occurs when an attacker acts as a trusted entity or a trusted organisation and manipulates a victim into opening a text message, instant message or an email. There are detrimental and devastating results of the phishing attacks which include unauthorised purchases, stealing funds or even identity theft and fraud. In addition to this, phishing is normally used to gain privileged access to private and confidential information.

Examples of common phishing attacks include an email from some weird organisation such as myuniversity.edu which is commonly distributed to several faculty members and these emails always state that the user’s password is about to expire and it states that you need to go to the link to renew your password within 24 hours. Now once you click this link you’re redirected to the bogus page and it looks completely real but it’s actually a scam. 

Phishing scams make use of third party links and third party websites which are very dangerous and the scammer hacks into your laptop or phone to gain access to the privileged information. Now there are several techniques and ways that phishing scams operate. Let’s discuss a few and let’s discuss how they operate.

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man-thinking-of-scam-protection.png
1. Email phishing scams
mail for phone

Now these are common types of scams through which scammers attack the victim through the email address. Now a scammer or an attacker mainly sends tons of and I’m not talking hundreds or just a bunch I’m talking about almost thousands of fraudulent messages which can lead to the gain of significant information and large sums of money can be withdrawn.  

Now these email phishing techniques can lead to several outcomes. This includes the scammers pretending to be a fake financial institution and requesting you to change your password within the next 24 hours: these scammers always create a sense of urgency and make it seem like it’s the end of the world if the victim or the user doesn’t change their password or click on the email link.

2. Spear phishing

Now spear phishing is yet another common technique through which scammers target a specific enterprise or a person instead of targeting random people. 

This type of phishing attack is far more organised and it requires an experienced scammer to carry this out.  Now let me tell you how this attack works and how it plays out. Firstly the attacker who is the scammer or the fraudster searches the names of all the employees working within an organisation and they target employees working in a specific department. They research the names of the employees and then they gain access to the latest project invoices.

marketing email

They pose as the marketing or finance director ( this depends on the department they are targeting) and they email the project manager using a subject line that says updated invoices and they completely duplicate the logo, text and the style of the company’s standard email format or template. Then they attach a link in the email which mainly redirects the employees to a password protected internal document which is basically a stolen invoice. 

The manager is then requested to login with their credentials so that they can easily view the document. The scammer then easily steals these credentials and gains full access to all the privileged areas of an organization’s network.

Why are they risky?

There are several reasons for which this type of banking fraud and scamming is risky. Baking scams and fraudulent activities are very risky and they are harmful for an individual. These banking scams make use of private and confidential information of the user and this includes information that is supposed to be with the individual. This private information includes banking passwords, addresses, patents information, security codes, pin codes and passwords of your account and it also includes information such as your name, date of birth, employment status and salaries which are all supposed to be privileged information.

let me out of here

All types of banking frauds and scams leverage this private information and these scammers hack into the system to use this information to make fake identities and to use this to steal money, conduct online transactions and go as far as developing an entirely new personality which uses credit cards and the credit history of the victim is being ruined. 

The scammers hack into the system and can easily obtain all this private information in just a matter of a few seconds. This is how fast and experienced these scammers are due to advancements in technology, new and sophisticated scamming techniques and due to the sudden rise in online banking activities.

All these types of activities damage the credit history of the individual and expose them to being liable to banks and being accountable for a crime they didn’t commit. These frauds and hackers manage to go months without anyone noticing and you might not even realize your system has been hacked. This is due to the rise in online banking platforms which has encouraged hackers to hack the systems and gas also made it easier to hack into a bank account. 

The hackers can easily access your bank account and if you’ve saved your password on your phone just know that your bank balance is now at the mercy of these hackers. Storing your information in your phone is the riskiest thing you can do as it exposes you to a high number of risks.

Government imposter scams

government building

I’m sure you can already tell what these types of scams are. They involve a government official and the individual receives a phone call from the scammer and they claim that you’ve won a prize that requires you to pay a certain amount of either taxes or fees so that they can easily process the prize. The scammer might sound very believable and in certain cases the scammers threaten you with jail time if you fail to make this payment. This is still a scam that can be easily detected because there is no federal agency that asks you to settle a debt or pay a certain amount.  

Many scammers come up with fake names or they use the names of real government agencies to trick the victim. In such cases the best thing to do is avoid the call and refrain from complying because there is no federal agency that asks you to pay your debts on call or to collect payments. So in the future keep this in mind. A federal agency cannot ask you to collect prizes and clear payments.

How do they work?

This is very common today as scammers have come up with sophisticated techniques to scam people by posing as government or federal agencies. Now let’s talk about how these government imposter scams work and how scammers pose as federal agencies. Now a government imposter mainly starts with a phone call, or an email or a text message from someone one who says that they’re a government agency. 

They might go as far as to give you their employee ID number to make it sound more official and to make it sound more believable. They might also have your private information such as your name, your address and your email etc.

man on call

This is primarily because they’ve ga led into your system and now there are tons of ways to find out the address and location of people online. Yes technology truly has advanced this much. You can enter someone’s phone number and their name and address shows up. 

Now these scammers pose as government agencies and then they often say that they work for the social security administration, the IRS or with Medicare however they also come up with fake agency names that are non-existent and are completely nonsensical. I mean it’s very easy for them to create a fake website impersonating a federal agency and they might know your information which makes it sound more believable.

Afterwards, these scammers ask you to immediately send them money because they need it for something and they need to make an urgent transfer on your behalf. They might come up with tons of excuses as to why they need this money. Some government imposters might say they’re collecting taxes or something else. Trust me, these scammers have quite the information and can easily come up with something that’ll sound too believable. Now let me tell you the giveaway and the way you can easily tell if it’s a scammer. 

There is no government agency that will call, email or send text messages to you asking for money deposits, check deposits or personal information. Trust me don’t fall for this scam and if you get any such call, email or text message simply avoid and hang up your phone.

Why are they risky?

iphone and 100dollar

There are several reasons for which this type of banking fraud and scamming is risky. Baking scams and fraudulent activities are very risky and they are harmful for an individual. These banking scams make use of private and confidential information of the user and this includes information that is supposed to be with the individual. 

This private information includes banking passwords, addresses, patents information, security codes, pin codes and passwords of your account and it also includes information such as your name, date of birth, employment status and salaries which are all supposed to be privileged information.

All types of banking frauds and scams leverage this private information and these scammers hack into the system to use this information to make fake identities and to use this to steal money, conduct online transactions and go as far as developing an entirely new personality which uses credit cards and the credit history of the victim is being ruined. 

The scammers hack into the system and can easily obtain all this private information in just a matter of a few seconds. This is how fast and experienced these scammers are due to advancements in technology, new and sophisticated scamming techniques and due to the sudden rise in online banking activities.

call and message

All these types of activities damage the credit history of the individual and expose them to being liable to banks and being accountable for a crime they didn’t commit. These frauds and hackers manage to go months without anyone noticing and you might not even realize your system has been hacked. This is due to the rise in online banking platforms which has encouraged hackers to hack the systems and gas also made it easier to hack into a bank account. The hackers can easily access your bank account and if you’ve saved your password on your phone just know that your bank balance is now at the mercy of these hackers. Storing your information in your phone is the riskiest thing you can do as it exposes you to a high number of risks.

Charity scams

This scam is mostly implemented on people who are very generous and are innocent souls. The scammers take advantage of an individual’s generosity. They do so by making up fake charities and impersonating many popular charities. The scammers can go as far as making up numbers that match your area code to make it more believable. They make it all sound very real and many people look to donate or do good fall prey and give them money.

donation

How do they work?

Now by the name I’m sure you can understand the type of scamming. Charity scams are popular mechanisms used by scammers to lure innocent people and take tons of money from them. Now let me guide you through the mechanisms of charity scams. There are several types of charity scams and each one works in a different way but the  story is the same. Scammers primarily ask you for donations in person, on the phone, email and through the internet . Now there are three main types of charity scams. Let’s go through each type one by one.

Charity tragedy scams

Now I’m sure you can identify what these types of scams are but let me tell you how they work. In the case of any natural disaster it is common for charity organizations to ask you for donations for the victims of the attack or natural disaster. This commonly includes the earthquake victims, flood relief victims or the tsunami victims. 

There are actual legitimate groups that work for this purpose and are responsible for collecting donations from people; however there’s a whole group of scammers who do the same thing. They act as if they’re a part of a charity organization or they’re a whole new charity organization that specializes in collecting funds for victims. This includes two main types of charity tragedy scams

coins counting
IRS Scams

Alright so this is a popular charity tragedy scamming method. This mainly includes scammers saying they work for and with the IRS. They claim that they’re working to help the disaster victims with tax relief and that your funds will be used to contribute toward disaster relief. Please don’t be a victim of these types of scams as it’s completely fake and it’s a trap. The IRS has a number that is used for getting help or donating so don’t be a fool and don’t fall prey to these types of scams.

Crowdfunding and social media scams

Now with the advancements in technology charity scammers have found new and sophisticated ways to scam people and they do this through social media platforms. Many charity scammers create fake social media pages and ask you for help and donations. They make fake social media pages and rip off the designs from other charity organizations to look legit but it’s actually a big scam. 

In addition to developing fake social media pages and buying followers and luring people, scammers often use crowdfunding websites. They use crowdfunding websites such as Go fund me to collect donations and they make it seem real by putting real pictures of people to aid their crime.

Holiday scams

Alright so this is yet another popular technique through which scammers scam millions of people. They pose as charity organizations who are collecting funds during the holidays and this includes Christmas holidays or other joyful occasions. 

Since they know tons of people give donations this time around they pose as fake charity organizations and get funds from people. This is a very foul way and is extremely disrespectful to the actual charity companies working day and night but they use this to their benefit and scam tons of people. They ask for donations and even give fake pictures to make it seem real and legitimate however it is completely fake and it’s a scam. 

So please avoid all types of such holiday chairs scams because in reality charity organizations collect donations and funds all year round and they don’t need to collect donations only on the holidays. These are scammers and this is the first red flag that you should avoid. Only give donations and charity to organizations that you know and trust.

Do you suspect that someone had scammed you?

If you have any suspicion of a scam or phishing attack, then you can rely on TheClaimers to help you with protection, mitigation, and fund recovery. You will feel safe knowing that experts with years of experience will be guiding you!

Why are they risky?

There are several reasons for which this type of banking fraud and scamming is risky. Baking scams and fraudulent activities are very risky and they are harmful for an individual. These banking scams make use of private and confidential information of the user and this includes information that is supposed to be with the individual. 

This private information includes banking passwords, addresses, patents information, security codes, pin codes and passwords of your account and it also includes information such as your name, date of birth, employment status and salaries which are all supposed to be privileged information.

attention sign

All types of banking frauds and scams leverage this private information and these scammers hack into the system to use this information to make fake identities and to use this to steal money, conduct online transactions and go as far as developing an entirely new personality which uses credit cards and the credit history of the victim is being ruined. The scammers hack into the system and can easily obtain all this private information in just a matter of a few seconds. This is how fast and experienced these scammers are due to advancements in technology, new and sophisticated scamming techniques and due to the sudden rise in online banking activities.

All these types of activities damage the credit history of the individual and expose them to being liable to banks and being accountable for a crime they didn’t commit. These frauds and hackers manage to go months without anyone noticing and you might not even realize your system has been hacked. This is due to the rise in online banking platforms which has encouraged hackers to hack the systems and gas also made it easier to hack into a bank account. 

The hackers can easily access your bank account and if you’ve saved your password on your phone just know that your bank balance is now at the mercy of these hackers. Storing your information in your phone is the riskiest thing you can do as it exposes you to a high number of risks.

Employment scams

contract papers

Employment scams are yet another popular scamming method and are commonly used by scammers. This is another way for them to gain access into the financial account of an individual. This mainly includes a scammer promising you to give you work in exchange for a certain fee. The scammer will ask for your personal financial details such as your bank account because they will transfer commissions to you. This is mainly done to obtain your financial information. 

Employment scams are usually through emails and phone calls. Scammers go as far as making up a company and showing you the details and answering all your questions to sound more real and believable. Many job websites have job offerings that are scams and people get scammed by giving their personal information to such scammers.

How do they work?

Employment scams are highly popular banking scams and many people are victims to these types of scams. There are several types of employment scams and let’s talk about how each employment scam works and what it is.

1. Work from home scams
work from home

This is yet another popular way of employment scams since scammers are aware of the increase in remote working jobs and they know how the demand has suddenly increased hence they target innocent people looking for jobs.  They place advertisements which are often online advertisements and they claim they have job opportunities that can offer your millions of dollars in income. 

Now we’re all aware that nothing is too good to be true and this is exactly what these work from home scams are like. The scammer mainly targets an individual looking for remote working opportunities and the work and job description is very attractive stating that you can be your own boss etc. Now let’s move on to the part where the scammers actually get money out of these victims.

Instead of making millions and thousands of dollars you end up paying for training which includes starter kits and it includes certificates that are completely bogus and are useless but the scammer says these are essential to polish up and enhance your skills. Leave it up to scammers to sugar coat everything and manipulate people. Money is the easiest way to lure people in and tons of money well we all know how that goes. 

These scammers ask for your card information saying it’s standard procedure etc and you might see unknown transactions on your account which you certainly haven’t made. Now whenever you search online and you find opportunities in reshipping which guarantees high returns. Now these scammers can ask you to reship packages and these packages may often contain high priced products such as electronics which are purchased using fake credit cards. You’re primarily being a part of a scam without knowing it and when you’ll ask them for pay checks you’ll never get one.

2. Mystery shopper scams
cart on keyboard

Now this is yet another category of employment scams and let me tell you how it works. Now imagine you’re looking up online for job positions and you find that you’re getting paid to shop online which might sound like your dream job come true but in reality it’s far worse and you’re better off without it. Now let me tell you how this mystery shopper scam works. 

The scammers ask you to pay for certificates and make up different types of certificates that are necessary to gain the job. Now this might seem legit but it’s not. The scammers even go as far as to make up fake employee reviews that might persuade you but it’s a scam. They’ll ask you to give certain fees and they’ll make up the excuse that this is standard procedure and you need to have these certificates. 

However, it’s completely not and once you pay hefty amounts for bogus certifications, they’ll even ask you to deposit a check which is a clear indication that the job is a scam.

3. Job placement service scams

Now these are yet another popular scamming technique often used by tons of scammers. Now the scammers pretend to have placement firms and they scam you by asking you to pay a fee which is a major red flag. Now this is the main sign for you to walk away and leave that job. It’s not worth it. No legitimate form or placement company asks the employee to pay a fee because that’s not how it works in the industry. These are mainly scammers who are waiting to prey on innocent victims.

Why are they risky?

keep out

There are several reasons for which this type of banking fraud and scamming is risky. Baking scams and fraudulent activities are very risky and they are harmful for an individual. These banking scams make use of private and confidential information of the user and this includes information that is supposed to be with the individual. 

This private information includes banking passwords, addresses, patents information, security codes, pin codes and passwords of your account and it also includes information such as your name, date of birth, employment status and salaries which are all supposed to be privileged information.

All types of banking frauds and scams leverage this private information and these scammers hack into the system to use this information to make fake identities and to use this to steal money, conduct online transactions and go as far as developing an entirely new personality which uses credit cards and the credit history of the victim is being ruined. 

The scammers hack into the system and can easily obtain all this private information in just a matter of a few seconds. This is how fast and experienced these scammers are due to advancements in technology, new and sophisticated scamming techniques and due to the sudden rise in online banking activities.

NO!!

All these types of activities damage the credit history of the individual and expose them to being liable to banks and being accountable for a crime they didn’t commit. These frauds and hackers manage to go months without anyone noticing and you might not even realize your system has been hacked. This is due to the rise in online banking platforms which has encouraged hackers to hack the systems and gas also made it easier to hack into a bank account. 

The hackers can easily access your bank account and if you’ve saved your password on your phone just know that your bank balance is now at the mercy of these hackers. Storing your information in your phone is the riskiest thing you can do as it exposes you to a high number of risks.

CHAPTER 3: Tips on Avoiding Banking Scams Today!

After looking at the various types of scams it is important to know how to protect yourself and your accounts from different types of baking scams. The first tip is to refrain from cashing checks for any unknown people. Despite the sudden urge of helping a person, you should never cash someone’s check-in in exchange for cash. The check won’t clear and the person will vanish by the time you realise what actually happened. The second tip is to read and inspect every single thing whether it is a check, an email, phone call or text message.

research

You need to read the fine print on unexpected checks to ensure that you aren’t getting scammed for a long time. Another tip is to never share any sort of financial information whether it is your bank account or any other type of personal information with anyone. 

You should never give your personal information on phone calls and please refrain from clicking on third party links to enter your bank details and other personal information. If you feel like you’ve been scammed, file a complaint immediately and  report it to the respective authorities. Also, click here to find more news and stories about different kind of scam!

You Must Watch Your Back When it Comes To Banking Scams in 2022!

There were a lot of banking scams! We never thought that there were that many scams even scammers have gotten very creative with new techniques for scamming individuals. Therefore, it is crucial to take necessary steps that prevent any information from leaking to an unknown website or in the hands of a fraudster. Banking scams are the most common types of scams now and even youngsters can easily scam or hack into a bank account. 

Therefore, a word of advice is to avoid giving your personal bank account number, mother’s maiden name, father’s name, pin code or CVV to anyone. It is also recommended to avoid answering unknown calls and especially refraining from giving anyone your pin code on call or through a message. Many banks warn customers of the surge in banking fraud and advise them to refrain from entering their pin or code on any link and unless they confirm the call from the bank they shouldn’t give their personal details to anyone. Scammers pose as bank officials and then easily manipulate people which includes old and retired people. This is primarily because they are easy targets. Therefore, stay safe from such banking scams and keep your personal information to yourself only!

do you need help?

A lot of those who contact us have questions and concerns about their personal and business data being compromised. We aim to arm you with the legal and technical know-how in the fight against scams. Also, we will be able to refer you to top scam recovery agencies.

Please fill up the form. Rest assured that our support team will get in touch with you

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