Fraud alerts can quickly notify you of suspicious or unauthorized activity on your bank accounts. But sometimes fraud alerts themselves it could be a scam.
Some banks warn of fake fraud alerts where fraudsters send you a text that looks like it’s from your bank to warn you about suspicious activity. The text then tells you to click on a link or reply, and finally to share some personal information. While real fraud alerts are worth paying attention to, you don’t want to click on a false flag. Here’s how you can tell the difference.
Why are fraud warning texts so persuasive
Fraudsters use phishing scripts to impersonate banks, credit card companies, payment apps and other trusted businesses. It can be especially convincing if you already do business with a financial institution that appears to be posting a phishing scam. These same fraud warning texts create a sense of urgency that you must take immediate action to avoid a negative outcome.
These messages may also include company logos to appear official. Low level of trust combined with high perceived value can cause people to enter their username and password or other credentials on fake websites. The Federal Trade Commission (FTC) warns that phishing documents and emails do not stop with usernames and passwords. Some scammers focus on account numbers or Social Security numbers instead.
All you have to do is click the link
The best thing you can do is identify the phishing text so you don’t click on the link or share personal information. If you don’t click on the link, the scammer can’t make you a victim. Before clicking on any link you receive in a text or email, pause. Is the message compelling and designed to get you to take immediate action?
Instead of answering a text, you can call the financial institution directly or log in through the official app or website to check for alerts. Do not use the phone number provided in the phishing document. Instead, go to the company’s official website. Some financial institutions will contact you and notify you of fraud warning scams, but it’s always a good idea to verify before clicking on any links. You should also avoid opening any attachments, and familiarize yourself with how the agency usually communicates with you.
A few extra seconds can be the difference between stopping fraud and giving the fraudster information that can give them access to your money.
All you have to do is click or share information
If you clicked on the link and provided any information such as username and password, change your password immediately. Setting up multi-step verification for your account can prevent fraudsters.
You may want to update your security software and run a scan if you suspect malware. You should also monitor your accounts and dispute any unauthorized charges.
You should also contact the financial institution you use about the phishing document so you’re both on the same page. You can also visit the FTC’s IdentityTheft.gov page for a refund plan.
