Bank Impersonation Scams

According to the FTC, consumers reported losing $12.5 BILLION to fraud in 2024.  While fraud and scams come in many forms, the second highest category of reported losses last year was Imposter Scams.  While we have previously covered a wide variety of Imposter Scams, the focus of today’s Fraud Friday is Bank Impersonation Scams.

Bank Impersonation Scams occur when fraudsters pretend to be bank employees in order to trick people into giving out information or transferring money. Have you ever received an urgent text message, call, or email from your bank about possible fraud?  What about from a bank where you don’t even have an account?  These are tactics that a bank impersonation scammer uses to try and gain access to your information.  In these instances, scammers are pretending to be someone that the victim knows and trusts making them let their guard down and give out that information.  These types of scams are especially difficult because there are legitimate fraud calls from debit card providers and bank employees that go out to customers.  Part of the duties of EXB’s fraud department is to make those phone calls.  I have had people answer, yell SCAM in the phone, and hang up.  Better to be safe than sorry, however, thanks to scammers, people are not as apt to answer the phone for an unknown number or to even believe a true fraud call.  Bank impersonation scams are just one more way that fraudsters try to attack their victims.  Let’s take a look at how they work, some red flags, and how to protect yourself.

Fraudsters pretend to be from a bank using fake caller ID, spoofed phone numbers, or email addresses that closely resemble real contact information.  The fraudster will claim there is suspicious activity or transactions on the victim’s account that require immediate attention.  They may also say there is a problem with internet banking or debit cards and they need to “verify” information to be sure.  They will try and gather any sensitive details the victim might be willing to give such as passwords, PINs, account details, even One Time Passcodes (OTP).  In some cases, scammers have been known to pressure the victim into transferring money into a new “safe” account.  That account is then controlled strictly by the fraudster and the funds are no longer accessible to the victim.

🚩Watch out for unexpected or unsolicited phone calls, emails, or texts claiming to be from EXB or any other bank.  EXB uses Shazam as our debit card provider and they do in fact reach out to customers when there is suspected fraud on debit cards.  Shazam begins with a text message, if no response they will call.  If there is still no response, a temporary block is placed on the debit card.  The Fraud Department has access to those cases and follows up with customers that Shazam has not been able to reach.  If you or someone you know receives a text or call from Shazam you aren’t sure about, please contact the bank and ask for the Fraud Department.  Also, if you receive a text or call from a financial institution you aren’t affiliated with, it is probably best to just not answer or respond.

🚩Be leery of any requests for personal information!  A bank will not ask you for PIN numbers, passwords, OTPs, or any type of information like that over the phone or email.  Your financial institution already has your pertinent information on file so there would be no need to ask for that, either.  Do not give in to pressure tactics some scammers use to create a sense of urgency.  Stop and think, don’t act quickly.

🚩A legitimate bank will not ask you to transfer money to a different account in order to “fix” a potential problem.  If an unsolicited person contacts you requesting this, it is a scam.

🚩Scammers can “spoof” phone numbers to make it seem like the call is coming from the bank so you can’t always rely on caller ID alone.  If you have any doubts hang up and call the bank directly using a telephone number you know and trust.

Bank Impersonation Scams are a serious and growing threat.  As criminals get more sophisticated in their fraud skills, it is essential for customers to stay informed and be cautious.  Awareness is always the first line of defense!  Never share sensitive information, verify any calls you aren’t sure of, look for the red flags listed above, and regularly monitor your accounts.  By knowing the correct way to respond and the signs to look for, you can protect yourself and your finances from fraudsters.  Exchange Bank is proud to be a family owned true community bank.  We are dedicated to the safety and well-being of our customers and the addition of a Fraud Department is just one more asset in the ongoing fight against fraud.