Major credit card company Visa is warning consumers—they've seen a 71% increase in back-to-school scams discussed on the dark web. What should you be on guard against?
- Someone pretending to be a school administrator
- Fake scholarship applications
- fraudulent shopping sites
College students are also being targeted with things like fake rental listings that collect a deposit; fake internship offers that require payment (internships should pay you, not the other way around!), and unpaid tuition notices.
Even if you're making all the right moves to lower your financial stress , a tricky thief could wipe out all your gains in one fell swoop. Be alert for these common banking scams that will steal your money but are so easy to believe.
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1. Classified ads overpayment scam
Whether it’s your favorite online auction, social media marketplaces, or any other classified ad online, it’s easy to fall for this banking scam.
A person says they'll send a check to you, and when they do, the check is for more than what they owe. They ask you to transfer the extra back to them.
The problem is the check is fake, and you don’t know that until you deposit it and the bank declines it sometimes days later. In the process, you’ve already given them the overage.
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Following along the same type of scam as above, in this one, a person often attempts to purchase something from you, but they’re located numerous states away.
Are they really going to drive five hours for that $10 pair of used shoes?
Instead, they send you a payment, which seems to go through, then ask you to wire some of it back because of overpayment. You do, but ultimately, the transfer to you is declined, canceled, or never goes through.
3. Your "bank" asks you to verify your Social Security number
You receive an email that looks like it came from your bank. It has the “correct” logo and looks like an official email. All you have to do is click the link to verify your Social Security number (or other personal identification).
Thieves will look very realistic, often using trusted brands and logos. Some even have a very real-looking email domain name. But stop and think about it. Why would your bank suddenly need this information?
If you’re unsure, don’t reply or click on the email. Instead, call your bank immediately from the phone number you find online to your local branch. Ask them if the email is real.
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4. A fake check binds you to some action
You won an award! The check comes to you in the mail, and it looks very real, so you cash it. You don’t realize that by cashing the check, you agree to some type of action.
That could be paying a hefty fee for membership into a club or making recurring payments for months to come.
If you don’t know who sent the check, don’t sign it, deposit it, or think twice about it. Fake checks are a simple way to lock you into an agreement, often detailed on the back of the check or in the fine print of some letter.
5. An automatic debit that goes unnoticed
This scam occurs when the thief somehow gets your bank account number. They may do this by contacting you via email, phone, or text message. With this information, they set up a payment to them monthly that comes from your account.
If you use subscription services, like those for TV and movies, you may not notice the $5 to $10 transaction, but it’s occurring every month.
That can add up quickly and be devastating if you’re trying to keep more money in your bank account .
6. A fake text message with a code
If you forget the log in to your bank account or the system forces you to verify your identity, you may receive a text message or email asking you to click a link to confirm it’s you. That’s a legitimate process if you initiate it.
However, theft occurs when you get a text message or email that looks very realistic, asking you to click a link to verify your login information. You worry someone else may be trying to log into your account, so you click the link.
The problem is it’s not real, and clicking that link exposes your information. If you didn’t just visit the site and request verification, it’s likely a scam.
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Another scam involves a contest that you’ve supposedly won. You’ll receive a fabulous prize soon; all you have to do is pay the shipping fee.
You’ll be asked to pay for processing, shipping, taxes, or another fee in these situations.
You do so in anticipation of a big prize, but nothing ever turns up except the processing fee charge in your bank account.
8. A company you worked with sends you an urgent request
Whether it’s your bank or another organization you’ve worked with, you may receive an email urging you to act immediately.
You have a limited amount of time to act, and if you don’t, you’ll have to pay fines or miss out on something you want.
Always verify the email address is real before taking action. Small changes in the domain name could be a clear indication that it’s fake. Also, any financial institution that needs you to take immediate action will call you, not email you.
9. A new job requires you to buy a gift card
If you’re in the job market, receiving an offer can seem like such a relief. If the details are a bit sketchy, though, and you have to pay for anything, don’t do it. A legitimate employer never charges you to work for them.
In this scam, you must set up your bank account information to activate a gift card. Your employer needs you to do this to submit payment to you.
They ask you for your bank information and PIN (that PIN request is a clear warning!). Or, they may tell you that to access the funds on the gift card, you need to set up the account and pay a small fee. They say they’ll pay you back for that fee, but they don’t.
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10. Sharing your bank account information on a fake site
Whether it’s an “urgent” medical bill that needs to be paid or a donation request for a group you belong to, thieves can be very tricky when sending money requests.
Some will capture your bank account information or credit card number with promises of using those funds for other needs.
For example, you may receive an email that looks like it's from your doctor’s office. You click on the link, submit payment, and provide your personal information. The only problem is that your doctor never sent the email at all.
11. Split the winnings
You receive an email or text message claiming you’ll receive a check for a specific amount of money.
You get the check and are asked to wire some of the money to a third party, sometimes claiming that you received both your award and theirs.
The check always bounces after you send that money to another party.
12. Your banking information is stolen
You do everything right and never fall for scams like the ones we’re talking about, but somehow, your account is hacked.
In some situations, a thief can purchase your personal information — including bank account information and credit card numbers from third parties that have obtained it.
This one is hard to prevent except for simply not ever giving out this information online.
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13. An account rep calls you over the phone
It’s your investment firm on the phone requesting that you supply your account number, PIN, Social Security number, or anything else you will tell them. It’s a very official-sounding person, and you have a relationship with that bank, so it’s easy to share whatever they ask.
However, the person on the phone isn’t from your bank. The easiest way to fix this is to ask for the person’s name. Then, hang up. Call the bank using the number you always use, not the one they’ve given to you.
Verify the information before providing anything online or via an incoming phone call. If you don’t, then you may end up losing your money and finding yourself needing to climb out of debt .
14. The local police department needs a donation
A charity calls you, saying they're raising money for the local police department, hospital, EMTs, or some other organization, asking for donations.
However, they're not real, and not only do they get your approval to take funds from your account, but they also end up with your personal information to use again.
Again, hang up, call the organization, and verify everything before providing any information. Also, most law enforcement agencies don’t accept monetary donations like this. Take them some cookies instead if you want to help.
15. Online loan applications
You need some money and receive an email with a “you’re qualified” offer. You decide to try to get approval, click on the link, and input your information.
They gather your information, including your Social Security number, physical address, and bank account information (so they can wire you the funds).
Unfortunately, they’ve just stolen your personal information.
Bottom line
Getting scammed is like throwing money away — only the damage can go much deeper. These scams are not always obvious, even for someone who thinks they would never fall for them.
The FTC reports that 2.4 million people in the United States fell for various prizes, online shopping, and other investment schemes in 2022 alone.
Learning to avoid foolish mistakes can protect yourself and your money from scammers trying to trick you.
Money tips that can work for everyone
No matter what your bank account balance is, there's always an opportunity to optimize and improve your finances. Here's a quick checklist of things you can look at today.
Focus on paying off your debt . Debt can hold you back from making progress with your overall financial well-being. Aside from cutting expenses, there are tools that can help you pay off debt faster like balance transfer credit cards and debt counseling.
Earning extra income can give you breathing room. If finances are tight, earning some extra money to supplement your income can make a huge difference. A new job is one option to consider, but if you're not ready to make a big change or already retired, a part-time side job could be a better choice.
Cut your expenses. It sounds painful and so not fun, but it doesn't have to be. Take a look at your biggest expenses because that's where you'll probably find the biggest savings. For example, auto insurance rates have been soaring so shopping around for a new insurance company can be the fastest way to cut your bill. Also, look for ways to cut your grocery bill (despite rising inflation).
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