Bank Fraud and Scams

Bank fraud is a growing concern that can affect customers in various ways, including email, phone calls, U.S. Mail, data breaches, ATM skimmers, and more. To protect customers and maintain trust, bank personnel must be aware of the most common types of fraud and scams. This guide provides valuable insights to help recognize, prevent, and report these threats.

Warning Signs of Possible Fraud and Scams

Scammers often use specific tactics to deceive individuals. Be alert for:

• Calls or emails claiming to be from the government requesting payment.
• Requests to pay money upfront for a prize or gift.
• Demands to wire money, send funds via courier, or use prepaid/gift cards.
• Requests for access to ATM cards, bank accounts, or investment accounts.
• High-pressure tactics urging immediate action without time for questions.

Tip: If something seems suspicious, advise customers to hang up, walk away, or avoid sharing confidential information.

Common Types of Scams

Charity Scams

Fraudsters pose as legitimate charities, especially during disasters or holidays.

• What to do: Verify the charity’s legitimacy through official websites or trusted sources.

Debt Collection Scams

Scammers may pose as debt collectors demanding payment for fake or resolved debts.

• What to do: Verify debts before sharing financial information.

Grandparent Scams

Fraudsters impersonate relatives, claiming emergencies to solicit money.

• What to do: Report suspected elder abuse to local authorities.

Imposter Scams

Scammers pretend to be trusted figures, such as government officials or charity representatives.

• What to do: Confirm identities independently before sending money.

Lottery or Prize Scams

Victims are told they’ve won a prize but must pay fees upfront.

• What to do: Avoid providing personal or financial information and never pay upfront for prizes.

Mortgage Closing Scams

Fraudsters impersonate real estate agents to steal closing funds.

• What to do: Verify communications with trusted individuals before transferring funds.

Romance Scams

Scammers build online relationships to solicit money under false pretenses.

• What to do: Avoid sharing sensitive information with new connections.

Wire or Money Transfer Fraud

Fraudsters use wire transfers to steal funds.

• What to do: Verify the recipient’s identity before transferring money.

Understanding Identity Theft

Identity theft involves using someone’s personal information to commit fraud. Monitor for:

• Unauthorized charges on financial statements.
• Unfamiliar accounts or inquiries on credit reports.

Prevention Tips:

• Regularly review credit reports and financial statements.
• Place fraud alerts or security freezes on credit files if needed.

Protecting Yourself and Others

• Don’t share account numbers, passwords, or Social Security numbers.
• Avoid high-pressure sales tactics or offers that sound too good to be true.
• Sign up for the National Do Not Call Registry at www.donotcall.gov.

Reporting Fraud and Scams

If you suspect fraud, report it to:

• The Federal Trade Commission (FTC) via their online complaint portal.
• Local police or sheriff’s office.
• The State Attorney General’s office.

Key Terms to Know

• ATM Skimmer: A device that steals card details and PINs.
• Elder Financial Exploitation: The misuse of an older adult’s funds or property.
• Phishing: Fraudulent attempts to obtain sensitive information via email or text.
• Spoofing: Falsifying caller ID information to appear legitimate.

By staying informed and vigilant, bank personnel can play a crucial role in protecting customers from fraud and scams. Use this guide as a training tool to enhance awareness and response strategies.