As technology advances, so do methods for banking scams in Kansas City. No one is exempt from money fraud, but that doesn’t mean it has to remain a constant fear factor!
At Cornerstone Bank, we do all we can to help our clients avoid scams and secure their finances. When you have questions about something sketchy, we are always here to help!
Types of Fraud: What to Expect & Do Next
It goes without saying that the internet makes it a lot easier for scammers to do their bidding. Now more than ever, it’s important to understand the different banking scams out there so you can keep yourself and your family protected.
While we can’t go through everything, we can at least give you a foundation so you can catch things you might’ve otherwise missed. At the end of the day, when you know common signs, you’ll be able to report issues before they become an enormous problem.
Identity theft
Gone are the days when identity theft required a scammer to have physical items (i.e. social security card, driver’s license, etc.). Identity theft continues growing as cybercriminals have found new tactics to steal your money.
What does identity theft mean?
Identity theft doesn’t literally mean someone is trying to steal your identity and pose as you for the rest of their life (though sometimes it does). Rather, it’s more about using your personal information to drain your bank accounts, max out your credit cards, open new accounts, get medical treatment, and more.
Signs of identity theft:
- Withdrawals from your account you can’t explain
- No longer receiving bills in the mail (keep in mind if you have gone paperless, you will not receive mail)
- Collections officers calling about debt you didn’t rack up
- Medical providers billing you for services you didn’t undergo
- IRS calling about multiple tax returns filed under your name
- Notification that your personal information has been compromised
How to protect yourself against identity theft:
- Use different passwords across the internet and change them frequently.
- Turn off cards right away if they are lost or stolen.
- Do not keep your social security card on you unless it’s necessary.
- Destroy old documents, bills, etc. with personal information.
- Don’t let mail stay too long in the mailbox.
- Monitor your credit report.
- Visit identitytheft.gov if you have lost or stolen documents.
Phishing
Whenever you’re searching through your email, don’t get caught in a phisher’s trap. Phishing is a way scammers lure you into providing your personal information via email by posing as an institution or business you trust. For example, you could get an email from someone claiming to be Cornerstone Bank stating they need your information to resolve a serious problem with your account. That fear may lead you to email back things like your account number, routing number, social security number, and more. Do not fall for it.
Signs of a phishing email:
- Unusual greeting for the company it’s claiming
- Grammatical errors throughout the email
- Email address that does not match with the company
- Sense of urgency or threats
- Odd attachments
- Requesting personal information via email
How to protect yourself from phishing:
- Call the institution/company right away to verify whether an email is from them.
- Never give out personal information via email.
- Don’t provide passwords or other security information.
- Report and delete suspicious emails.
Advance fee fraud
In some cases, a scammer may ask for an advance or upfront fee promising to give money, stocks, products, and more in return. They may even pose as legitimate brokers or firms claiming they can return money investors have lost in stocks.
At first glance, the advance fee may seem like a good deal or a way to get money fast. But in reality, it’s a way for scammers to take your money and never return it.
Signs of advance fee fraud:
- Use of words such as advance fee, finder’s fee, membership fee, administration fee, handling fee, or participation fee
- Promises to send you money, products, services, “special deals,” and more
- Offering to find financing arrangements if you pay a finder’s fee
- Forced contract stating you will pay the fees
How to protect yourself from advance fee fraud
- If something sounds too good to be true, don’t buy into it.
- Do not trust a company you haven’t heard of before or doesn’t seem legitimate.
- Fully understand every contract you sign before making the final decision.
- Take caution if a company operates using a P.O. Box rather than a street address.
- Be wary of deals that require you to sign a nondisclosure or non circumvention agreement (allows scammers to threaten you with a civil suit if you report losses).
Elder Abuse Scam
You may not have heard about elder abuse scams, but they are definitely something you should consider. Our bankers at Cornerstone have seen firsthand how scammers take advantage of older people to steal their money.
Here’s how it may work:
If you are a senior, someone may call you claiming to be your grandson who needs monetary help after being arrested (yes, we have seen this happen). They may even have you speak to someone who says they are an attorney to validate the statement.
There’s no one way someone can scam an elder. In fact, they may use any of the methods above or something more creative. The idea is that elders are less likely to understand, especially if they are disabled, lonely, or unfamiliar with technological banking advances.
Signs of an elder abuse scam:
- Catfishing (someone claiming to be a person they aren’t on the internet)
- Telemarketing asking for personal information
- Someone trying to convince you to move out of your home
- A call claiming your social security number has been suspended for suspicious activity
- Being coerced into signing power of attorney documents
- Claiming you won the lottery
- Unsolicited offer to repair your home for an upfront fee
How to avoid elder abuse scams:
- Have a trusted friend or relative help you maneuver through important financial tasks, if needed.
- Verify with family members if someone claims to be your grandchild.
- Never send anyone money who tells you not to tell your bank (Cornerstone Bank will ask you why you are withdrawing over $3,000).
- Do not trust companies/people you have never heard of or met.
- Be wary of pop-ups on the internet and don’t download strange attachments.
- Ignore telemarketing calls.
How to Know Someone is Posing as Your Bank
Scammers are smart, and they can easily uncover where you bank. As a result, they use that information to trick you into giving them money by pretending to be the bank you trust. Many people end up falling for fraud tactics, assuming everything that says it’s from their financial institution is actually from their financial institution.
Our advice: Always, always, always verify the source of a call, email, or physical letter by directly calling or visiting your bank itself.
Plus, there are simply things your bank will not ask you via email or even over the phone. If they do, then that’s a big red flag that you’re not interacting with your bank at all. Questions include:
What is your password or pin number (over the phone)?
Your bank should never ask for your full password or pin number over the phone, even if they say it’s for “security purposes.” The last few digits or even your preset security questions are normal, but anything beyond that should raise a red flag. There is only so much information that’s safe to say over the phone without compromising your funds.
Can you email me your banking information?
If your banker asks you to email private bank information (such as online logins), then you should steer clear. Email scams can appear to come from your trusted bank, but if you truly worked with a safe bank, they would never need logins or account information via email.
Will you click this link?
If you see an email that’s allegedly from your bank but asks for you to click a link, odds are, that’s not your bank. Don’t get drawn in by warnings that your account has been compromised or there has been fraudulent activity. Banks do not require you to click links via email. This differs from receiving an email with links that lead back to the website. For instance, your bank may send out a newsletter with links to helpful blog posts.
If you ever have questions about whether an email from Cornerstone Bank (or any bank for that matter) is legitimate, call directly and speak to someone you know and trust to confirm.
What’s your credit score?
When you open a savings or checking account, your bank does not need your credit score; it isn’t relevant for those accounts. A banker can come up with a million reasons why they need your credit score, but you should always say no. Even if you’re opening a credit card or getting a loan, your bank shouldn’t ask for your score. Instead, they will simply have you sign off on a credit check. Keep in mind, this goes for both personal banking and for business owners.
Cornerstone Bank can help you protect yourself from banking scams
More than anything, our bankers are here to help you with any of your financial needs. Since 2001, we have been a primary resource for our customers across the Kansas City metro and the country. We take pride in watching our customers thrive, no matter who you are.
We always put our customers first, and that means giving them the best banking has to offer. We don’t believe in simple banking; rather, we go above and beyond to help our customers make their money work for them.
For more information, visit our Overland Park office or give us a call at 913-239-8100 to let us know how we can help.