Title: Protecting Your Money from SMS Scams: Essential Precautions to Take
Introduction:
In an era of increased digital fraud, SMS scams have become a prevalent threat, particularly when it comes to impersonating banks. The Federal Trade Commission (FTC) has reported a significant surge in SMS bank identity theft cases, with consumers losing over $330 million to scams in 2022. It is crucial to take precautionary measures to safeguard your finances from falling victim to these fraudulent practices. This article will outline essential steps to protect yourself from SMS scams posing as your financial institution.
I. Avoid Making Money Moves Under Pressure:
Scammers play on your emotions to manipulate and deceive you into urgent action. If you receive an SMS warning about suspected suspicious activity that demands immediate response, exercise caution. Remember, legitimate banks do not resort to pressure tactics. Refrain from taking any action when you feel scared, stressed, or under pressure. Safeguard your money by staying calm and assessing the situation logically.
II. Do Not Click on Unfamiliar Links:
If you receive an unexpected SMS, especially if it appears to be from your bank, be cautious. Security experts have reported receiving suspicious messages from unknown senders, and clicking on links from strangers is always unadvisable. Treat unsolicited communication with skepticism. Fraudsters commonly impersonate major banks like Bank of America, Wells Fargo, Chase, and Citibank. Exercise extra caution when dealing with messages claiming to be from these institutions.
III. Avoid Calling Phone Numbers Sent via Text:
Similarly, avoid clicking or dialing phone numbers received via text message. Instead, refer to your bank’s official contact information by logging into its website or mobile app. Make contact using the verified phone number to ensure you are speaking with a legitimate representative of your financial institution. Initiating the call yourself significantly reduces the risk of falling victim to scams.
IV. Recognize Suspicious SMS Scam Tactics:
One prevalent scam involves text messages from scammers posing as your bank, asking you to confirm or deny a suspicious transaction by responding with a “Yes” or a “No.” Once you answer, the fraudsters may call you under the pretense of assisting you, but their ultimate goal is to fraudulently transfer money from your account or extract personal information such as your social security number. Be vigilant and recognize the tactics employed by SMS scammers.
V. Steps to Take if You Fall Victim to a Scam:
If, despite your precautions, you become the victim of an SMS scam impersonating your bank, take immediate action. Notify your bank and seek their assistance in preventing further fraudulent transactions. Report the scam to your local law enforcement, as these initial steps are crucial in recovering any wrongfully withdrawn funds. Additionally, file a complaint with the FTC at ReportFraud.ftc.gov and report the incident to the FBI Internet Crime Complaint Center.
VI. Stay Proactively Informed about Your Account Activity:
Maintaining a good understanding of your account activity is essential in protecting your money from scams. Make it a habit to regularly review your account to stay informed. By familiarizing yourself with your financial activity, you are less likely to be alarmed by text messages that appear to be from your bank. This awareness contributes to your overall financial security.
Conclusion:
The surge in SMS scams impersonating banks requires individuals to take proactive measures to safeguard their finances. By avoiding pressure-induced actions, refraining from clicking unfamiliar links, and initiating contact with your bank via verified methods, you can significantly reduce your risk of falling victim to SMS scams. Awareness of suspicious scam tactics and timely reporting are crucial if you become a target. By prioritizing your financial security and staying informed, you can effectively protect your money from SMS scams posing as your financial institution.
Summary:
SMS scams impersonating banks have become a significant threat, with losses surpassing $330 million in 2022 alone. Taking precautions such as avoiding pressure-induced actions, refraining from clicking unfamiliar links, and initiating contact through verified methods can protect you. Recognizing suspicious scam tactics and promptly reporting incidents to your bank, local law enforcement, and relevant authorities are crucial if you fall victim to such scams. Regularly monitoring your account activity is another key aspect of financial security. Safeguarding your money from SMS scams requires vigilance and proactive measures.
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Banks are a safe place to keep your money, but there are still some basic but important precautions you can take to make sure you don’t fall for a bank impersonation text message scam. Here’s how to protect your money from SMS scams posing as your financial institution.
DO NOT MAKE MONEY MOVES UNDER PRESSURE
SMS scammers will try to make you feel like immediate action is needed, at the risk of losing your money. It may appear as an urgent message warning you to call or click on a link due to suspected suspicious activity.
“Pressure tactics of any kind aren’t legitimate — that’s not your bank,” says Paul Benda, senior vice president of operational risk and cybersecurity at the American Bankers Association. As with any decision involving your finances, avoid taking action when you’re feeling scared, stressed, or under pressure.
DO NOT CLICK ANY LINK FROM A TEXT MESSAGE NOT REQUIRED
If you receive a text message that you don’t expect, be careful, especially if it looks like it’s from your bank.
In a recent survey of security experts on Security.org, 66% of respondents said they received a suspicious message from someone they didn’t know, and about 20% clicked on links sent by strangers, which is never advisable. “Be very wary of any unsolicited communication,” Benda says.
Major banks were popular picks for fraudsters to impersonate in 2022. According to the FTC, the most common scam text messages often claimed to be from major banks, including Bank of America, Wells Fargo, Chase, and Citibank.
DO NOT CALL A PHONE NUMBER SENT TO YOU
Just like you shouldn’t click on a link texted to you by someone you don’t know, don’t click or dial a phone number that you receive via text message. Instead, find your bank’s official phone number by logging into its website or mobile app. Initiate contact with your financial institution on the official phone number to make sure you are speaking to a legitimate representative and check if there is indeed a problem.
“Making that phone call can be the difference between being scammed and not being scammed,” says Tremaine Wills, a financial advisor and founder of Mind Over Money, a financial literacy firm in Newport News, Virginia.
According to the FTC, one particular type of text message scam resulted in an average loss of $3,000 in 2022: a text sent by someone posing as your bank, asking you to respond with a “Yes” or a “No” to confirm or deny a suspicious transaction. Once you answer, the scammer would call you under the guise of helping you. Their ultimate goal was to fraudulently transfer money from your account or obtain personal information such as a social security number.
WHAT TO DO IF YOU CANNOT AVOID A SCAM
Should you fall for a scammer posing as your bank, there are a few basic steps you need to take.
First, notify your bank of the incident and ask for their help in making sure no more money leaves your account fraudulently. Next, report the scam to your local law enforcement. These first two actions are essential in attempting to recover any cash wrongfully withdrawn from your account.
Finally, file a complaint with the FTC at ReportFraud.ftc.gov and/or report the complaint to the Federal Bureau of Investigation Internet Crime Complaint Center. The FTC also recommends forwarding suspicious text messages to 7726, which helps wireless providers identify and intercept similar text messages. You can also report and block suspicious text messages within your messaging app.
Having a good idea of your account activity is key to protecting your money from scams.
“Make a regular habit of knowing what’s going on with your account,” says Wills. If you’re not entirely sure what’s going on in your account, you’re more likely to be alarmed by a text message that appears to be from your bank, he says.
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This article was provided to the Associated Press by personal finance website NerdWallet. Ruth Sarreal is a writer at NerdWallet. Email: rsarreal@nerdwallet.com.
NerdWallet: Is my money safe in the bank? https://bit.ly/nerdwallet-is-my-money-safe-in-a-bank
FBI Internet Crime Complaint Center (IC3) https://www.ic3.gov/
In 2023, Security.org conducted its Internet-based survey of experiences with online scams. Participants were 1,026 American adults representing the US population by gender, region, and age.
security.org. (July 2023). “Web of Deception: Online Scams to Avoid in 2023.” https://www.security.org/digital-safety/new-online-scam-prevention/
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