Protecting Yourself from the Most Common Text Message Scam

Bank impersonations have been identified as the most frequently reported text message scam, according to the Federal Trade Commission.

Reports of bank impersonation via SMS in 2022 increased 20 times compared to the figures reported in 2019. According to the FTC, consumers reported losing more than $330 million to text message scams in 2022. And cash lost to bank fraud or scams isn’t covered by the Federal Deposit Insurance Corp. or the National Credit Union Administration.

Banks are a safe place to keep your money. However, there are a few basic but important precautions you can take to make sure you don’t fall victim to a bank impersonation text scam. Here’s how to protect your money from text message scams from your financial institution.

DON’T MAKE MONEY TRADE UNDER PRESSURE

Text scammers try to make you feel that action is required immediately – at the risk of losing your money. It may come as an urgent message warning you to call or click a link due to alleged suspicious activity.

“Any kind of pressure tactic is not legal — it’s not your bank,” says Paul Benda, executive vice president of operational risk and cybersecurity at the American Bankers Association. As with any financial decision, avoid taking action when you’re feeling scared, stressed, or pressured.

DO NOT CLICK ANY LINK IN AN UNSOLICITED TEXT MESSAGE

If you get a text message you weren’t expecting, be careful – especially if it looks like it might be from your bank.

In a recent survey by security experts at Security.org, 66% of respondents said they had received a suspicious text from someone they didn’t know, and about 20% clicked on links sent by text from strangers, which is never recommended. “View any type of unsolicited communication very carefully,” says Benda.

Major banks were popular options for scammers to appear in 2022. According to the FTC, the most common scam text messages often purported to be from major banks such as Bank of America, Wells Fargo, Chase and Citibank.

DO NOT CALL A PHONE NUMBER THAT HAS A TEXT MESSAGE FOR YOU

Just like you shouldn’t click on a link sent to you by someone you don’t know, don’t click or type in a phone number you receive in a text message. Instead, you can find your bank’s official phone number on the bank’s website or mobile app. Contact your financial institution at its official phone number to make sure you’re talking to a legitimate representative and check if there really is a problem.

“Ringing the bell can be the difference between getting scammed and being scammed,” says Tremaine Wills, financial advisor and founder of Mind Over Money, in Newport News, Virginia.

One particular text scam led to a median loss of $3,000 in 2022, according to the FTC: a text message from someone impersonating your bank asking you to answer “yes” or “no” to confirm or deny a suspicious transaction. When you answered, the scammer called you to help you. Their ultimate goal was to either fraudulently transfer money from your account or obtain personal information such as your social security number.

WHAT TO DO IF YOU COULDN’T AVOID THE SCAM

If you happen to fall for a text scammer at your bank, there are a few important steps you need to take.

First, report the incident to your bank and ask for their help to ensure that no more money is removed from your account fraudulently. Next, report the scam to your local law enforcement agency. These first two steps are key when trying to recover money that was illegally taken from your account.

Finally, file a complaint with the FTC at ReportFraud.ftc.gov and/or report the incident to the Federal Bureau of Investigation’s Internet Crime Complaint Center. The FTC also recommends that you forward suspicious text messages to 7726, which helps wireless service providers identify and intercept similar text messages. You can also report and block suspicious text messages in your messaging app.

Having a good understanding of how your account works is an important part of protecting your money from scams.

“Regularly know what’s going on in your account,” says Wills. If you’re not entirely sure what’s going on with your account, you might be more likely to be concerned about a text message purporting to be from your bank, he says.