It’s important to understand that safeguarding your bank account from scammers is your responsibility, not your bank’s.
In 2023, scams were responsible for $3.4 billion in losses among those 60 and older — twice the amount of financial loss as any other age group.
How a Bank Account Scam Unfolds
You get a call from someone claiming to be your bank. The phone number verifies that it’s from your bank. They tell you that there has been some suspicious activity on your account but first need to verify your identity. To do so, they send a security code to your phone and ask you to read it to them.
You receive the text with the code, read it aloud to the caller, and they assure you that your bank account is now secure. However, you’ve just been scammed, and most, if not all, of the money in your bank account is now gone.
This also works when the scammer sends you a text message or email telling you that you need to call the immediately.
The Mechanics of a Bank Account Scam
Here’s what happened, the scammer has somehow obtained your password. Perhaps it was too simple and easy to crack, or maybe you reused it across multiple sites and it was compromised in a data breach. Regardless of how they obtained it, they have your password.
To bypass your two-factor authentication (2FA), which you wisely set up (you did set it up didn’t you?), the scammer simply calls you and while you’re on the line, they enter your email and password on the bank’s website. The bank then sends a 2FA code to your phone. When you provide this code to the scammer, they enter it on the website, giving them full access to your bank account and your money.
You can check here if your email address has been breached. Note: mine has been in 21 data breaches, and yes I have changed my password on all of those sites.
The Bank’s Role in Protecting Your Account
It’s important to note that the bank is not liable in this situation. The scammer didn’t breach the bank’s security; they tricked you into giving them access. As a result, the bank isn’t obligated to help you recover the stolen funds.
Imagine that someone walked up to you in a parking lot and told you that they were your bank manager and your account might be compromised. The ask you to give them your user name and password. What would you do? Would you believe them?
Then why believe the scammer on the phone? Or the email or text message? Remember, your bank will never call you and ask for your account credentials or for you to “verify” your identity.
The Cost of Bank Scams
In 2023, bank account scams resulted in over $10 billion in losses, according to Kiplinger. Scamming is a highly profitable business, and most scammers manage to stay ahead of the law. Mostly because the scammers are usually from other countries, outside the US jurisdiction, and the number they’re calling from is spoofed to appear as though they’re calling from your bank.
Although I did get a scam text message the other day from Muritana. I guess that scammer didn’t know know how to spoof numbers.
Protect Yourself from Scammers, the Bank Won’t
The key to avoiding scams is to realize that scammers succeed because they good at what they do. They do it every day, all day long. They prey on the vulnerable, convincing them that they are there to protect them.
Treat Emails and Text Messages with Caution
When you receive a call, email, or text claiming that your bank account has been compromised and urging you to call a specific number, do not trust it. Instead, independently verify the situation by contacting your bank directly using a verified number. Never call the number provided in the suspicious email or text.
Your Bank’s Role is Limited
Just as you wouldn’t give your account details to a stranger in a parking lot, allowing a scammer to access your account via phone, text, or email isn’t the bank’s fault. The bank is responsible for securing the credentials that they hold, but it’s your responsibility to keep your credentials safe.
Enable Alerts on Your Account
Most banks offer alert services that notify you of account activity via email or text message. While these alerts can sometimes be annoying, they serve as an early warning system for fraudulent activity. It’s better to be slightly inconvenienced than to become another victim of a bank account scam.
In Conclusion
- Never share your account credentials with anyone over the phone, text, or email.
- Your bank is not liable for losses if you willingly give someone access to your account.
- Activate alerts to monitor your account activity.
- Always remember: protecting your account credentials is your responsibility.
As always, if you have a question about this or any other post, please leave a comment below, or you can email me at larry@thetechboomer.com.
