Online banking makes managing your money faster and more convenient, but that convenience can also attract criminals looking for opportunities to access your financial information. One increasingly common approach is bank impersonation scams, in which fraudsters pretend to represent a trusted bank or other financial institution to convince customers to share sensitive information or move their money.
These impersonation scams can be surprisingly convincing. A phone call may appear to come from a familiar number. A text may warn of suspicious activity. An email may direct you to a website that looks almost identical to your bank’s.
Knowing what to look for (and how to respond) can help you protect your accounts. Here are five ways to make your online banking habits stronger.
1. Be cautious when your “bank” contacts you unexpectedly
Many bank impersonation scams begin with an unexpected phone call, email or one of several urgent text messages claiming there is a problem with your account.
The person contacting you may claim to be one of your bank’s employees or even say they are calling from the fraud department. They may tell you that your debit card was compromised, someone is attempting a purchase or there has been other suspicious activity on your account.
The goal is often to create urgency. Before you have time to think, the caller may ask you to confirm sensitive account information or take immediate action.
Remember that the information displayed on your caller ID is not necessarily proof of who is calling. Criminals can use spoofing technology to make a call appear to originate from a legitimate organization.
If something feels unusual, end the conversation and contact your bank yourself using a trusted phone number or another official channel. Taking an extra minute to verify who you are speaking with can help stop an impersonation scam before it goes any further.
2. Never give out sensitive banking information because someone asks for it
Protect your financial information as carefully as you protect your money.
Fraudsters involved in imposter scams may ask for information such as your:
- Account number
- Card numbers
- PINs
- Online banking login credentials
- Social Security number
- One-time verification codes
These pieces of information can potentially be used to gain access to accounts, make unauthorized transactions or contribute to identity theft.
Pay particular attention to requests for verification codes. If you receive a code you did not request, do not assume the person contacting you needs it to “secure” your account. A criminal may actually be attempting to use your information to access it.
Be suspicious whenever someone contacts you and then asks you to prove your identity by providing sensitive financial information.
3. Think before you click a banking link
A message that looks like it came from your bank does not necessarily lead to your bank.
Phishing emails and fraudulent texts can include links to fake websites designed to look like legitimate financial sites. Some fake bank websites may closely copy a real bank’s logo, colors and login page in an attempt to capture usernames, passwords and other information.
Instead of clicking an unexpected link, navigate to your bank through a source you already trust, such as its official mobile app or a website address you know to be correct.
This is especially important when a message uses fear or urgency to get your attention. Claims that your account has been locked, your card has been compromised or immediate verification is required can all be tactics designed to make you click before you think.
4. Never move money simply because a caller tells you it will keep your account safe
One particularly dangerous form of financial fraud occurs when a criminal convinces someone that their money is at risk—and then offers to “help” protect it.
The fraudster may instruct you to transfer money to another account, send wire transfers or otherwise move funds to supposedly protect them from theft. In reality, the instructions may send your money directly to the criminal.
Some schemes go even further. A fraudster may request remote access to your computer or mobile device under the guise of helping resolve a banking problem. Giving an unknown person control of your device can expose sensitive financial and personal information.
Pressure to move money immediately should be a major warning sign. Stop, independently contact your financial institution and verify what is happening before taking action.
5. Learn to recognize different types of impersonation fraud
Bank impersonation is part of a broader category of imposter scams in which criminals pretend to be someone you are likely to trust.
In addition to pretending to represent a bank, scammers may claim to work for a government agency, well-known company or other legitimate organization. Phone-based impersonation attempts are sometimes referred to as vishing, a form of phishing conducted through voice calls.
Regardless of the approach, many impersonation scams rely on the same ingredients: trust, urgency and fear. Recognizing those patterns can make it easier to stop and question what you are being told.
If you believe you have encountered a scam, consider reporting it to the Federal Trade Commission. The FTC provides information about current scams and resources for consumers who believe they may have been targeted. Reporting suspected fraud can also help the FTC identify patterns and warn others about emerging threats.
A few seconds can make a big difference
Technology can make banking easier, but protecting your accounts still starts with good habits.
Pause when an unexpected request creates urgency. Verify who you are speaking with before sharing information. Avoid unfamiliar links and fake banking websites. And never let someone pressure you into providing sensitive information or moving money before you have independently confirmed the request.
Bank impersonation scams work by getting people to react quickly. Taking a moment to stop, question and verify can be one of your strongest defenses against financial fraud.
At Vallant Bank, protecting our customers is part of protecting the communities we serve. If you receive a suspicious communication claiming to be from Vallant or are concerned about activity involving your account, contact us at 877.759.7939, send us a message here or visit your local branch.
Stay safe out there!
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