How to Protect Yourself Against Three Common Phone Scams

With an increase in Artificial Intelligence (AI) and spoofing technology, phone scams are more sophisticated and prevalent than ever. Staying educated on the different types of common phone scams plays a crucial role in your ability to protect yourself against fraud.

While many financial institutions work to provide fraud assistance to their customers, including Bankers Trust, it is truly up to each individual to be the first line of defense against scammers and fraud. Once you’ve shared account or personal information with a scammer, they are able to do with it as they please.

Check out three of the most popular phone call and text message scams below, how they work, what to do if you receive one and tips to keep in mind for future scam messages.

1.    Fraud Department Impostor Phone Call Scam

In this type of scam, individuals receive a call seemingly from a phone number associated with their financial institution. The scammer works to gain credit or debit card numbers and PIN information. Here’s how it works:

• The caller/scammer will claim to be with their financial institution’s fraud department.
• The scammer will ask the individual to verify a credit or debit card transaction.
• When the individual confirms the transaction is unauthorized, the scammer will proceed to ask for the individual’s full card number and PIN under the guise of shutting down the card to prevent future unauthorized transactions.
• Once the scammer has this information, they can create a counterfeit card and use it to purchase gift cards or money orders using money from the individual’s account.

What to do:

If you receive a call similar to this type of inquiry, hang up and do not share any personal information over the phone. Call your local branch or customer service line using a number you already know or can find online to confirm if the fraud department was actually trying to reach you. Your financial institution can then confirm if they did or did not call, review your account activity for the transaction the scammer was attempting to verify, and look for other suspicious activity.

Note: Bankers Trust will never ask for your PIN number or online banking login credentials.

2. Customer Service Impostor Phone Call Scam

Similar to the Fraud Department Impostor scam, in this type of scam an individual receives a call from a scammer posing as a member of their financial institution’s customer service team. The scammer works to gain access to the individual’s online banking information to take over their account. Here’s how it works:

• The caller/scammer will claim to be with their financial institution’s customer service department.
• The scammer will ask the individual to verify transactions on their account.
• When the customer confirms the transaction is unauthorized, the scammer will then ask for the customer’s online banking login information to verify additional transactions.
• Once scammers have access to the online banking information, they can login and set up external transfers or People Pay profiles to send money out of the account.

What to do:

If you receive a call that seems to follow this line of questioning, hang up and do not share any personal information. Call your local branch or customer service line using a number you already know or can find online. Your financial institution can confirm if they did or did not call, review your account activity for the transaction the scammer was attempting to verify, and look for any other suspicious activity.

Note: Again, Bankers Trust will never ask for your PIN number or online banking login credentials.

3.     Malicious Text Message Scam

An individual will receive a text from what appears to be their financial institution. The scammer works to get them to click on a link and then enter their online banking information. Here’s how it works:

• The texter/scammer will claim to be their financial institution verifying a transaction on the customer’s account.
• Once the individual responds “No,” confirming the transaction was unauthorized, they are sent a verification link asking them to enter their online banking login information.
• This link is malicious and sends the login credentials to a Telegram (similar to WhatsApp) channel where it can be sold to other scammers.
• Scammers then use the login information to log in to the customer’s online banking profile and set up People Pay transactions.

What to do:

If you receive one of these texts, ignore it, and then call your local branch or customer service line to report the information and verify recent account activity for anything suspicious. Remember, you should never click on a link in a text message from someone you don’t know.

Note: Bankers Trust will never ask for any online banking or account information via text.

Two other tips to keep in mind

1. If you have clicked on a phishing link but haven’t given out any information, it’s typically recommended to have your cell phone provider scan the phone for any potential viruses, even if you didn’t enter any banking information.
2. Stay vigilant and do not respond if you receive an unexpected call or text message from an unknown number urgently asking you to do something.

If you’re already a victim of a phone scam, here are a few immediate steps to take:

1. Contact the Federal Trade Commission (FTC) to file a complaint online* or by phone at 877-FTC-HELP (877-382-4357).
2. File an identity theft claim at identitytheft.gov*. This will begin the process of recovering your identity and taking measures to prevent future identity theft.
3. Notify the financial institutions where you have accounts. This includes your bank, credit card companies, investment companies, insurance companies and brokerage firms.
4. Notify the three major credit reporting agencies, Equifax, Experian and TransUnion, and place a freeze on your credit with all three agencies.
5. File a police report with your local police department.
6. Change all your internet banking passwords.

Be sure to stay educated on common phone scams to protect yourself against fraud.

*Please Note: There are external links included in this article that will take you to a website that Bankers Trust does not control. Bankers Trust has provided these links for your convenience, but does not endorse and is not responsible for the content, links, privacy policy, or security policy of external websites.