Defend yourself against banking text message scams
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Raisin is a free platform for high-yield savings accounts and CDs from 100+ banks and credit unions. We don't provide loans, investments, or tax services. Information on this page is for educational purposes only.
Key takeaways
Banking text message scams, known as smishing, use urgency and impersonation to trick recipients into revealing sensitive personal or financial information.
Verifying unexpected messages through trusted official contact channels helps protect your identity and financial accounts.
Taking time to check messages through official channels, avoiding direct replies, and reporting suspicious texts can help protect your finances and personal information.
How do you spot a banking text message scam?
A banking text message scam typically appears as an urgent alert regarding unauthorized transactions, locked accounts, or suspicious activity. Scammers impersonate financial institutions and include malicious links or phone numbers designed to capture login credentials, passwords, or personal data. Legitimate banks will never request sensitive account information or authentication codes via text.
Understanding banking text message scams and smishing
Bad actors continue to adopt sophisticated techniques to target personal and financial information. Banking text message scams — frequently referred to as "smishing" (SMS phishing) — represent some of the most pervasive fraudulent schemes today.
While the frequency of spam texts can feel overwhelming, taking proactive measures helps safeguard your identity and cash. Understanding how fraudulent schemes operate empowers you to identify malicious links and protect your financial accounts.
When managing short-term cash, maintaining vigilance across your accounts remains essential. Using a platform solution like Raisin allows you to access high-yield savings products from a network of trusted partner institutions through a single dashboard, with deposits eligible for FDIC or NCUA insurance, up to $250,000 per depositor, per institution, subject to certain conditions.
Common types of text message scams
Scammers use various tactics to manipulate recipients into acting quickly. Below are the most common text message schemes reported by consumers:
1. Bank impersonation scams
Scams where bad actors pretend to be a financial institution represent the most frequently reported type of text scam. Financial loss from text fraud reached over $330 million in recent years, according to Federal Trade Commission (FTC) data.
Many consumers receive legitimate text alerts from their financial institutions if they have opted into account notifications. However, authentic bank alerts inform you of activity rather than requesting sensitive details. Financial institutions will never ask for passwords, account numbers, or multi-factor authentication codes via text.
If you receive a suspicious message claiming to be from your bank, avoid clicking links or replying. Instead, contact the institution directly using the official customer service phone number printed on the back of your debit card or listed on their official website.
2. Wrong number and free gift scams
Text messages promising free rewards — such as gift cards, vacations, or mobile devices — are common indicators of fraud. These messages frequently double as "wrong number" scams, where the sender pretends to have reached you by accident to build rapport and extract personal data.
In other cases, scammers impersonate mobile service providers, exploiting the fact that consumers regularly receive legitimate bill reminders from their carriers.
3. Package delivery issue scams
Delivery issue scams impersonate postal services, such as the United States Postal Service (USPS), or commercial delivery providers like UPS or FedEx. These messages claim a delivery failed or requires an updated address or fee. To verify a delivery status, log directly into the merchant or carrier's official website rather than clicking links inside an unexpected text message.
4. Fake job offer scams
Fake job offer scams exploit job seekers by advertising remote positions with high pay, flexible schedules, and minimal requirements. Scammers may request upfront payments for "training supplies" or background checks, stealing both funds and personal information.
5. Amazon security alert scams
Because Amazon is widely used, fake security alerts claiming that an account is locked or that an unauthorized order was placed often cause immediate concern. These messages prompt recipients to click a link to "verify" their identity. Always review account activity directly through Amazon's official mobile application or website.
Red flags of a text message scam
Scam feature | Red flag behavior | Legitimate bank behavior |
Sense of urgency | Demands immediate action to avoid account closure or fees | Informational alerts with standard follow-up options |
Requests for information | Asks for PINs, passwords, SSNs, or login codes | Never requests sensitive credentials via text |
Suspicious links | Uses shortened URLs or misspelled domain names | Directs users to verified official websites |
Unsolicited offers | Promises unearned gifts, prizes, or guaranteed returns | Standard promotional offers with full disclosures |
Other common red flags include grammatical errors, odd punctuation, and messages received from unfamiliar email addresses routed through text gateways.
How to protect yourself from text message scams
Taking immediate, deliberate steps helps prevent unauthorized access to your financial accounts:
Avoid clicking embedded links: Never click links inside unexpected text messages, as they may lead to spoofed websites designed to capture credentials.
Do not reply to the sender: Replying to a scam text confirms that your mobile number is active, which can lead to an increase in spam messages.
Block and report the sender: Use your mobile device settings to block the phone number and report the message as junk or spam.
Contact your bank directly: If you suspect account compromise, reach out to your financial institution using an official, verified phone number.
Report text fraud to federal authorities: Forward scam texts to 7726 (SPAM) and report fraudulent schemes to the FTC at https://reportfraud.ftc.gov/.
How does Raisin protect online security and cash?
At Raisin, clarity and reliability are core priorities. Raisin will never ask for passwords or multi-factor authentication codes via text or email, nor request payment transfers or remote software installation. Furthermore, cash deposited through partner institutions on the platform is eligible for FDIC or NCUA insurance, up to $250,000 per depositor, per institution, subject to certain conditions.
Bottom line
Maintaining vigilance against digital fraud allows you to manage your finances with confidence. For more insights on digital privacy, visit our Online Safety Guides.
When managing your short-term savings, convenience and ease of use should go hand in hand. With Raisin, you can access competitive rates on high-yield savings accounts and certificates of deposit from a network of trusted partner institutions — all managed through a single dashboard with no platform fees.
Frequently asked questions
What should I do if I clicked a link in a scam text?
If you clicked a suspicious link, immediately update your online banking passwords, enable multi-factor authentication, monitor your bank statements for unauthorized activity, and notify your financial institution.
Will a bank ever text me asking for a login code?
No. Legitimate banks and credit unions will never send a text message asking you to reply with a multi-factor authentication code or password.
The above article is intended to provide generalized financial information designed to educate a broad segment of the public; it does not give personalized tax, investment, legal, or other business and professional advice. Before taking any action, you should always seek the assistance of a professional who knows your particular situation for advice on taxes, your investments, the law, or any other business and professional matters that affect you and/or your business.
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Raisin does not hold any customer funds. Customer funds are held in various custodial deposit accounts. Each customer authorizes the Custodial Bank to hold the customer’s funds in such accounts, in a custodial capacity, in order to effectuate the customer’s deposits to and withdrawals from the various bank and credit union products that the customer requests through Raisin.com. The Custodial Bank does not establish the terms of the bank or credit union products and provides no advice to customers about bank or credit union products offered by the applicable bank or credit union through Raisin.com. Each customer also authorizes the Service Bank to move funds among the various banks and credit unions at the customer’s request. First International Bank & Trust (FIBT), Member FDIC, is the Service Bank. Bell Bank and Starion Bank, each Member FDIC, are the Custodial Banks.
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