In 2023 alone, Americans lost over $10 billion to financial fraud, according to the Federal Trade Commission (FTC). With the rise of online banking, peer-to-peer (P2P) payment apps and digital transactions, scammers have become more sophisticated – using phishing emails, fake QR codes and fraudulent phone calls to steal money.
The worst part? Many victims never recover their stolen funds. That’s why understanding how scams work, and how to protect yourself, is essential. Here’s what you need to know about the most common scams and how to keep your accounts secure.
Common Scams Targeting Online Banking Customers
Scammers continuously adapt, making it harder to detect fraud. Here are the most widespread and emerging threats to online banking customers:
- Phishing: You receive an email that looks like it’s from your bank, asking you to verify your account or reset your password. The email contains a fake link that leads to a fraudulent website, designed to steal your login credentials.
- Smishing: Similar to phishing, scammers send fraudulent text messages pretending to be your bank. The message may claim that your account has been compromised or request immediate action.
- Vishing: You receive a phone call from what appears to be your bank but the number has been spoofed. The caller claims there’s an issue with your account and asks for personal details to verify your identity.
- Quishing: Scammers create fake QR codes, placed on public posters, websites or emails, that direct you to fraudulent sites or download malware onto your device.
How to Protect Your Personal Information
Preventing financial fraud involves a two-part strategy: being alert to common scams and safeguarding your personal information.
Secure Your Online Activity
- Update your security software and enable automatic updates
- Only browse websites with HTTPS
- Use a Virtual Private Network (VPN) to encrypt online activity
- Never enter passwords or banking details on a public computer or Wi-Fi network
- Avoid posting about vacations, purchases or financial details on social media
Recognize Suspicious Messages
- Watch for incorrect spelling, grammatical errors or awkward phrasing.
- Do not click on links in emails or texts claiming to be from your bank.
- Never scan QR codes from unverified sources.
- If you receive an urgent account warning, call your bank directly and the customer service number listed on the back of your debit card.
How to Monitor and Protect Your Accounts
Stay proactive to protect your online banking with these security habits.
- Check accounts regularly for any suspicious activity or unauthorized transactions.
- Use strong passwords for each account, do not use the same password across multiple websites and update them on a regular basis.
- Enable multi-factor authentication on your accounts.
- Register your number with the Do Not Call Registry to reduce scam calls.
- Access your free credit reports to monitor any unauthorized changes.
What to Do If You Suspect Fraud
Protect yourself and your accounts with the following steps:
- Stop all communication with the scammer.
- Contact your bank immediately to report any fraudulent transactions.
- Regularly change all your passwords and have a unique one for each website.
- Place a freeze on your credit report to prevent identity theft.
- Report fraud to the FTC, the Consumer Financial Protection Bureau (CFPB) and your local police department.
At Ion Bank, we prioritize your financial security. If you suspect fraudulent activity, contact us immediately to help secure your account and guide you through next steps.