This Halloween, the only thing you should be scared of is running out of candy—not getting scammed. Study up on these common scams to make sure your finances stay safe, solid and secure:
1. The Phantom Phishing Attack
You receive an email or text message that appears to be from your bank. The message is urgent, warning you about “suspicious activity” on your account or that your online banking has been compromised. There's a link for you to click but - beware! This type of message could be a phishing attack.
How It Works: The scammer pretends to be your bank, tricking you into clicking on a link that leads to a fake website where you enter your online banking credentials.
How to Protect Yourself: Never click on links in unsolicited emails or text messages. Instead, log into your bank account directly through their official website or app. If you’re ever in doubt, call your bank directly to confirm if the communication is legit.
2. The Dreaded Overpayment Scheme
You’ve sold something online, and the buyer seems genuine—until they send you a check for more than the asking price. They ask you to deposit the check and refund the difference – but then the check is fraudulent.
How It Works: The scammer sends a fake check that initially clears, so you think it’s real and send the refund, but once the bank processes the check it comes back as counterfeit. Now, you’re on the hook for that entire payment.
How to Defend Yourself: Always be cautious of overpayments and insist on correct payments before completing any transaction.
3. The Wire Transfer Nightmare
Scammers love to weave intricate webs, and their emails or text messages can look eerily convincing. Maybe it’s an email from a “relative” stuck abroad, or a text about a package that can’t be delivered unless you pay a nominal fee, or even your boss asking you to make an urgent wire transfer – but truly this is a scam in disguise.
How It Works: By impersonating an entity or person you trust, the scammer creates an urgent scenario where you need to make a payment quickly. But once you send it, that money and the recipient vanish.
How to Defend Yourself: Always verify requests for wire transfers, especially if they seem out of the ordinary. Call the person directly using a trusted number, not the one provided in the email or call. It is best to stay calm and check twice before acting.
Here are some more tricks to treat yourself to financial safety:
- Never give out your personal information over the phone. Banks will never call to ask for online banking credentials or account numbers over the phone.
- If you receive a call or message that seems suspicious, stop the communication and call the official number of the institution the caller claimed to be.
- If you received a suspicious link you weren’t expecting, carefully hover over the link (without clicking) to see a preview of where they really lead.
- Never download attachments from unknown sources or that you weren’t expecting.
- Always double-check the URL before entering your personal information and look for the padlock symbol next to the URL. If there’s no padlock, then the site is NOT secure.
- Never enter passwords or access sensitive information while using public Wi-Fi.
- Don’t be ashamed to report a scam to the bank, the police, or a consumer protection agency. Your report could help prevent others from experiencing the same scam, and the bank will discuss ways to keep your accounts safe in the future.