What is a Bank Imposter Scam?

Bank imposter scams are a type of smishing, or SMS phishing, and are some of the most dangerous cybersecurity threats currently facing the financial industry.
 

Back in March, we let our customers know that FNBT had seen a large increase in bank account scams, targeting our customers and trying to gain access to their financial details.

Unfortunately, this is nothing new. Banks of all sizes across the country are targeted every day by cybercriminals. These cybercriminals pretend to be financial institutions to gain access to accounts and steal funds from customer bank accounts.

It’s vital that you stay alert for these possible scams, understand how to spot them, and know what to do if you think you might have been a victim of a scam.

What is a Bank Imposter Scam?

Bank impersonator scams are a type of smishing, or SMS phishing, and are some of the most dangerous cybersecurity threats currently facing the financial industry. This is where criminals send a text message to your devices pretending to be your bank. They’ll typically include a link to a fake website that looks like your bank login, asking you to enter your credentials. If you do, you’ve unknowingly provided access to your bank account.

In some cases, these go beyond bank text scams, and the fraudsters may call you and claim to be an employee of the bank. They will then trick you into providing your personal information, gaining access to your financial accounts, and stealing your money.

Is My Bank at Fault?

Remember, your bank is also a victim when these scams occur. In most cases, this isn’t a result of a cybersecurity breach of any banking system. Instead, it is on an individual basis where users are tricked into online scams.

Scammers will target banks and credit unions nationwide, regardless of size. Banks like Wells Fargo, Bank of America, Capital One, and even PayPal have all been victims of these cybercrimes.

New data from the Federal Trade Commission shows that bank impersonation is one of the most reported scams. In 2022, consumers lost almost $330 million to these types of scams.

How to Spot a Bank SMS Phishing Scam

The four most common types of phishing that you’ll potentially come across are text or SMS messages, emails, phone calls, and payment app links. Text scams are becoming increasingly more common as they’re cheap to send. With AI, cybercriminals can easily replicate the language that real banks use in their messaging.

Text scams typically have a sense of urgency about them, looking to catch you off guard and encourage you to take action quickly. They’ll usually ask for some form of personal information or for you to click on a link in the message.

You may also note that the phone number the text is being sent from isn’t someone you recognize, but it’s important to know that some technology can now spoof numbers of real banks to appear genuine. The messages may contain misspellings or grammar issues while also asking you to transfer money to yourself from one account to another.

When you’re using payment apps like PayPal or Zelle, you should also be aware of how cybercriminals may target you. Generally, these apps are very safe. Still, you should be mindful of suspicious texts you receive from your supposed bank asking you to transfer money via one of these payment apps. Your bank will never ask you to use one of these apps to transfer money from your bank account. Usually, fraudsters include links in these kinds of texts that go to a spoofed site that looks like one of these payment apps.

Bank of America was hit hard with a payment app scam at the end of 2023. Criminals pretending to be BOA representatives called customers to tell them there was suspicious activity on their account regarding Zelle transactions and that money needed to be transferred from one account to another. This resulted in customers unknowingly sending money to criminals via Zelle.

What to Do If You Receive an Urgent Text About Your Account

Most cases of this type of bank fraud come from customers clicking on links in a panic after receiving a message that their account has been hacked or flagged for suspicious activity. Before taking action, remember that nothing is so urgent that you can’t get a second opinion or look for more information.

Don’t call the number that texted you; visiting the bank’s website or looking at your statement for your bank’s phone number or other contact information is best. If you live close to a local branch, you could even stop in to talk to someone in person. 

You should always log into your banking account directly via the bank website or app, not via links emailed or texted to you. If you believe you received a suspicious text message or email, report the issue to your bank, then block and delete the messages from your devices.

What to Do If You Fall Victim to a Bank Imposter Scam

If you believe you’ve become a victim of a bank scam, contact your bank directly as a first step. You can also report the scam to the FTC or file a police report if you believe money has been taken from your accounts.

You should also change the password for your online banking account as soon as possible, along with any other accounts that use the same login details. This is a great reminder to use strong and unique passwords for all your online accounts.

Consider freezing your debit card or requesting a new one once you’ve secured your account. If anyone has your card details, this will make it harder for them to gain access to your funds and use them. 

You should also report the crime as identity theft, as any other details these criminals could gain may compromise other accounts you have, not just financial ones.

Keep Your Account Safe with First National Bank and Trust 

At FNBT, we’re dedicated to fighting fraud and protecting your hard-earned money. Learn how to protect your money on the go and contact us if you’re concerned that you may have become a victim of fraud. 

Remember to keep a small amount of your funds in your checking account when possible and keep the majority of your money in a savings account. This limits the amount of money scammers can access if they have your card details.