Bank Impersonation Is the Most Common Text Scam: What You Need to Know

Fake bank messages try to create a sense of urgency

Typically, a scammer on the phone will try to alarm the people being targeted, saying that they must take immediate action to protect their accounts from being emptied.

“They will be walked through a series of steps that they’ve been led to believe will cause the fraudulent purchase or transfer to be reversed,” Fletcher says. But the money is actually being transferred into the criminal’s account.

Sometimes, the scammers will guide targets to sophisticated replicas of actual bank websites.

“Other than a different web address, you really can’t tell that they’re fake,” explains Aaron Foss, founder of Nomorobo, a security company that specializes in blocking robocalls and spam text messages for its clients. “They use fear to get people to quickly tap on the link and not look at the URL too closely.”

The object in such cases is to steal victims’ login credentials and other personal data.

Bank impersonation robocalls, meanwhile, aim to connect victims to a live scammer, who then carries out the scams noted above. Or sometimes, the criminal on the phone will tell victims to download remote-access software, which people don’t realize will actually give the scammers access to their computers, Foss says.

How to protect yourself against bank text scams

Some tips from the American Bankers Association and other sources include:

• Never click on links on texts or emails in a text or email notification. Instead, go to the bank’s website (even if you’ve signed up for text alerts). Use the URL listed on your statements or that you’ve previously bookmarked, and check for any alerts on your account.
• If you get a robocall or call from someone claiming to be from your bank, hang up. Then contact your bank in a way you know to be legitimate, either online or by calling the phone number on your statement or debit card.
• Never provide account data or personal info.  As ABA's Banksneveraskthat.com website explains, “our bank will never ask for your PIN, password, or one-time login code in a text message. If you receive a text message asking for personal information, it’s a scam.” 
• Don’t rely on caller ID. Scammers can use technological tricks to display actual bank phone numbers or even the name of the bank.
• Be wary of a message or caller insisting that you take immediate action. Scammers try to put you under pressure to act quickly, to make it more difficult for you to think clearly.
• When in doubt, seek assistance. If you’re unsure what to do in response to what appears to be an alert from your bank, stop and ask a trusted person — a friend, family member or coworker — to help you.

Reporting bank impersonation scams

If you experience a bank impersonation attempt, notify your financial institution of the occurrence. Include a screenshot of the text. If you lose money to this scam, contact your bank immediately — they may be able to halt the transaction.  

File a police report. The documentation may be of value if there is some means of recouping your loss; for example, some home insurance providers offer fraud loss protection.

File reports with the federal government. The Federal Trade Commission (FTC) and the Federal Bureau of Investigation’s Internet Crime Complaint Center use fraud reports to target their investigations; the more information they have, the better they can identify patterns, link cases and ultimately catch the criminals. Contact the FTC at reportfraud.ftc.gov and the FBI at IC3.gov.