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3 Banking Scams to Watch Out for in 2021

By CIOReview | Wednesday, April 14, 2021
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Banking scam is a common way for criminals to get access to people’s personal and financial information.

FREMONT, CA: Scammers’ tactics range from the crude to the sophisticated. Whether they target victims with a phishing email or trick them into offering access to their devices, the outcome is the same—innocent people lose money. Banks have implemented better protections and fraud warnings at the point of payment, but this assistance often comes late to ‘break the spell.’ A banking scam is a common method for criminals to access people’s personal and financial data. Banking scam uses several methods to trick people into giving up sensitive data like bank account numbers and passwords. Here is more to it.

Overpayment Scam

If banks offer services or sell products online, they could fall victim to an overpayment scam. Overpayment scams start with someone sending the counterfeit check or money order for more than the amount owed. Then, they ask customers to deposit the money in the bank and wire the difference back to customers.

Check-Cashing Scams

Another scam comprising checks is the check-cashing scam. This scam preys on the compassion of other people. Individual approaches outside of a bank or other financial institution asking if it will cash a check for them. They may say that they don’t have an account at this bank but require the money. Customers can deposit the check and pull cash from the account to pay the person their funds. However, the clearing process can take various days. So, when the check doesn’t clear, the funds are held against the account.

Unsolicited Check Fraud

Receiving a check in the mail may happen. It could look like a rebate check or a refund for overpayment. Customers should inspect the check thoroughly, paying close attention to any fine print on the front or back. There is an option that customers are entering into a legally binding contract by signing the check and cashing it. Banking scam uses tactics like this to get customers to authorize memberships, loans, and other longer-term commitments that could cost customers. The banking scam is counting on blindly accepting the check as free money and cashing it. Be wary of cashing any rebate or refund check customers weren’t expecting.