Banking Scams and How to Avoid Them
We work hard to earn and save money. These days the criminals are pretty savvy and know what to say to get what they want, which is access to your money via your checking account. Below we discuss some of their latest tricks so that you’ll be prepared and not become a victim of this growing crime!
Automatic Debits
You receive a phone call from someone claiming that you’ve won a prize or qualified for a major credit card. They ask you for your checking account information so that they can begin making automatic debits from your account and that they’re using this information to verify the offer. Once you give them the information, they can begin making debits from your account. Sometimes, it seems as though the offer is legitimate, but it’s not. Follow this tips so that you don’t become a victim:
- Never give out your checking account number over the phone unless you truly know the company and fully understand the need for the information.
- If the telemarketer informs you that you’re being taped, ask why. Never be afraid to ask questions or request a call back number.
- Companies don’t typically ask for this information unless you’ve agreed or chosen to utilize this payment method.
So you know, federal law requires anyone accepting a checking account payment over the phone to provide you with the following information:
- The date and amount of the withdrawal;
- The name of the business receiving your payment;
- Whether it will be one transaction or many;
- A telephone number for you to call during normal business hours; and
- The date that you give your oral authorization for the transaction.
Authority Figure
A con artist posing as an FBI agent, IRS agent, bank examiner, police officer, detective, jury duty official, or bank official contacts you requesting your assistance with an investigation or notifies you that you owe money. You are asked to withdraw funds from your account to give to them, with the promise that your money will be returned once the investigation is over or that if you don’t give them the money, you’ll go to jail.
The Pigeon Drop
Pairs or groups of criminals will work together to try to scam you out of money. You are befriended by one or two people and are subsequently approached about a windfall opportunity of cash or other valuables. They agree to split the goods with you but need some upfront money as a sign of good faith. You’re then told where to meet them for the exchange of the goods and the return of your “good faith deposit”, and nobody shows up.
Phishing
Shysters have discovered that they can steal your identity by posing as banks, brokerage or credit card companies by sending you emails requesting your Social Security number, a PIN or some other personal information.
How to protect yourself
- If you feel uncomfortable don’t do it, whatever it is.
- No bank, state or federal agency will call and ask you for any money or threaten you with incarceration if you fail to hand it over.
- Don’t be so trusting, get to know people before you hand over any amount of money.
- If someone representing your bank asks you to make a withdrawal, call your bank and talk to them.
- If you receive an email that appears like it’s from a legitimate source, yet you find yourself questioning its validity, give them a call.
If you’ve spotted or become a victim of a scam, file a complaint. For more information, see the link below and if you need legal counsel, contact us.
http://consumer.ga.gov/consumer-topics/filing-a-complaint
Sources
The information found on the Gerstenberger Law site is for educational purposes only. Your situation and the situation of others is unique and more complex. This is neither legal advice nor to be considered legal advice. Contact us for advice about your specific situation