Top online and bank scams to watch out for to protect your money

The digital age has brought countless conveniences, from online shopping to digital banking. However, it has also opened the door to sophisticated scams targeting unsuspecting individuals. By understanding common scams and how they operate, you can take steps to protect your personal and financial information.

Common Scams to Avoid

Phishing scams

Phishing scams are among the most prevalent online threats. These scams often involve fraudulent emails, text messages or websites that impersonate legitimate entities, such as banks or e-commerce platforms. The goal is to trick you into providing sensitive information, like passwords or credit card numbers.

How they work:

• You receive an email claiming unusual activity on your bank account. It urges you to click a link to "verify" your information.
• The link directs you to a fake website designed to steal your login credentials.

How to protect yourself:

• Verify the sender’s email address and avoid clicking on unsolicited links.
• Navigate directly to the company’s official website to check for issues.

Bank Impersonation Scams (Vishing)

Vishing, or voice phishing, involves scammers calling and pretending to represent your bank. They may claim there has been suspicious activity on your account and request personal information under the guise of resolving the issue.

Warning Signs:

• Unsolicited calls asking for sensitive information.
• High-pressure tactics to create urgency.

If you receive such a call, hang up and contact your bank directly using their official customer service number to verify the legitimacy of the request.

Account Takeover Scams

In an account takeover, criminals gain unauthorized access to your bank account, often using stolen login credentials obtained through phishing, malware, or social engineering.

How to Reduce Your Risk:

• Use strong, unique passwords for each account.
• Enable multi-factor authentication (MFA).
• Regularly monitor your accounts for unauthorized transactions.

Fake E-Commerce websites

The rise of online shopping has also seen an increase in fake e-commerce sites. These scams lure shoppers with deals that seem too good to be true and then steal payment information or fail to deliver the purchased items.

Protective steps:

• Research websites and read customer reviews before making a purchase.
• Ensure the site uses secure payment methods and displays “https://” in its URL.
• Avoid sharing sensitive information on unfamiliar sites.

Ransomware attacks

Ransomware is malicious software that locks you out of your devices or encrypts your files, demanding payment for restoration. These attacks often originate from phishing emails or compromised websites.

Prevention tips:

• Keep your operating system and software updated.
• Use reputable antivirus programs.
• Regularly back up your files to mitigate data loss in case of an attack.

Romance Scams

Romance scams exploit emotional vulnerability, targeting victims through dating apps or social media. Scammers build trust over time and eventually request money under false pretenses, such as medical emergencies or travel expenses.

How to Stay Safe:

• Be wary of individuals who avoid video calls or in-person meetings.
• Never send money to someone you haven’t met in person.

Fake check scams

In a fake check scam, fraudsters send counterfeit checks to victims, asking them to deposit the funds and send a portion back. By the time the bank flags the check as fake, the victim has already sent real money to the scammer.

Key red flags:

• Overpayment for goods or services.
• Requests to wire money or send gift cards.

Protecting yourself against scams

While scams can be complex, adopting good habits and staying vigilant can significantly reduce your risk:

• Monitor Accounts Regularly: Check your bank and credit card accounts frequently for unauthorized activity.
• Use Strong Security Practices: Employ unique passwords, enable MFA and avoid sharing sensitive information over email or phone.
• Educate Yourself: Familiarize yourself with the latest scams by visiting trusted resources like the Federal Trade Commission (FTC) or your bank’s fraud prevention page.

What to do if you’ve been targeted

If you suspect you’ve fallen victim to a scam, act quickly:

• Contact your bank immediately to freeze your accounts and report unauthorized transactions.
• File a report with the FTC and your local law enforcement.
• Change your passwords and monitor your credit reports with tools like Associated Bank’s Credit Monitor for any suspicious activity.

Online and bank scams may be on the rise, but with awareness and proactive measures, you can safeguard your personal and financial information. Stay informed, stay cautious, and don’t hesitate to reach out to your bank or a trusted organization if you have concerns.