Defend yourself against banking text message scams

Bad actors are getting more sophisticated about how they try to steal your information. Unfortunately, banking scams are all too common, with text message scams having become some of the most common.

The proliferation of these banking text message scams can make it seem hopeless that there’s anything to be done.

Thankfully, there are steps you can take to defend yourself against scam text messages and fraudulent banking schemes designed to trick you into clicking on malicious links or giving up personal or banking information.

Scam text message examples aren’t just bank-related. While banking scams are undoubtedly some of the most common types of text scams, we have included a list of common general text scams here as well because everyone should be informed about how to safeguard their identity and avoid falling prey to scams of all kinds.

The FTC has reported over $330 million in consumer losses in 2022 due to text scams. In fact, scams where bad actors pretend to be your bank represent the #1 most reported type of text message scam.¹

Some people fall for bank scams because, as Melanie McGovern, director of PR and social media at the Better Business Bureau notes in a CNET article, some banks do offer text alerts (if you’ve opted in).² The key here is that most, if not all, banks will only text you of suspicious activity if you’ve opted in, and even then, they will never request information from you via text message.

Remember, the key word here is “alert.” Don’t ever give out information via text message when it comes to banking details. Instead, always contact your bank at a number you know and trust, such as the one listed on the back of your credit or debit card, or the one that comes up on your bank’s official secure website.

If you get a suspicious text, you can verify it through the above method. You also should screenshot it so you can report it without accidentally engaging with it.

Have you ever heard the phrase “There is no free lunch?” Well, there normally aren’t any free gifts, either…at least not ones that anyone will text you about.

That’s why if you ever get a text message that promises something for nothing, such as a free vacation, gift card, or even new cell phone, beware.

These types of text messages sometimes are part of “wrong number” scams that claim to be from someone who has the wrong number to build your trust and get you to reveal personal information.

Sometimes, the sender even claims to be your cell phone carrier, since most people do get text messages from their cell carrier about things like autopayment alerts, and some cell phone carriers do give away free items, but usually those items are part of a bundle.

As is the case with bank scams, it’s best to avoid engaging with any free giveaway text messages or, as with banking scams, contacting the purported sender through a trusted phone number to determine the veracity of the message.

One of the more recent types of text message scams making the rounds is package delivery issue scams. Usually, these will claim to come from the United States Postal Service (USPS) but they may also appear to be from private carriers like UPS or FedEx.

These scams will claim that there was a problem with the delivery of an item, which can be confusing or disorienting.

The solution? Don’t engage. For any orders you know that you recently placed, log in to the actual merchant’s website and verify if there was a delivery issue that way.

Fake job offer scams exploit people's desire to find employment. They provide attractive job opportunities with high pay, flexible hours, and, often, little to no required experience.

These types of text scams might also ask you to click some kind of link to "apply" or provide personal information upfront.

Often, job scams ask you to pay for "training materials" or "background checks" in advance for phony, nonexistent jobs, stealing your information, your money, or both in the process.

Simply put, if it sounds too good to be true, it probably is.

Amazon is a widely used merchant, so it stands to reason that a security alert from the global giant would make most people worried.

But be on guard for phony Amazon security alerts, which often claim that there's been suspicious activity on your Amazon account like a failed delivery attempt or an unauthorized purchase. These types of text messages will often urge you to click a link to "secure your account" or "verify your information."

Avoid clicking any links or engaging with these types of messages, and instead, log in to your actual Amazon account to review account activity.

• A Sense of Urgency: Scammers often try to create a sense of pressure or urgency, getting you to act quickly and preventing rational decision-making.
• A Suspicious Sender: Texts that you receive from unfamiliar numbers, email addresses, or shortened links are often indicative of a text scam.
• Grammar and Spelling Errors: While scammers are getting more and more sophisticated, meaning not all text message scams have grammar and spelling errors, they are still often a red flag that the text message you’re receiving could be a scam.
• Unrealistic Offers: Promises that seem too good to be true usually are.
• Requests for Personal Information: Legitimate banks will never ask for sensitive details via text message.

• Don't click anything.
• Don’t ever reply. Replying confirms that you are texting from a live number.
• Block the number and report it as spam if possible.
• If you're worried about your bank account, contact your bank directly.
• Report the scam. If you are wondering how to report a scam text message, you can report it to the FTC at https://reportfraud.ftc.gov/.

Have more questions about online safety and banking? Head to our Online Safety Guides to learn more. At Raisin, we take your security seriously. We will never ask you for a password or multi-factor authentication code by text message or email and we will never call you to make payment transactions or install remote access software.

Learn more by perusing our security hub.

Sources:

1. https://www.ftc.gov/news-events/news/press-releases/2023/06/new-ftc-data-analysis-shows-bank-impersonation-most-reported-text-message-scam#:~:text=A%20new%20analysis%20from%20the%20Federal%20Trade,most%20common%20text%20scams%20impersonate%20well%2Dknown%20businesses.&text=Consumers%20reported%20losing%20$330%20million%20to%20text,than%20doubling%20what%20was%20reported%20in%202021.
2. https://www.cnet.com/personal-finance/banking/is-that-text-message-from-your-bank-legit-how-to-detect-and-avoid-sms-phishing-scams/

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.