Bank Account Fraud and How to Protect Yourself

A scammer uses various techniques to discover which bank you use.

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If fraudsters raid your bank account, it could devastate you financially. You could have your savings wiped out in seconds. And sometimes, you'll never see those funds again.

Fortunately, there are ways to keep your money safe from the various types of bank fraud. However, it will take some vigilance and planning.

Fake Communications From Bank

A scammer uses various techniques to discover which bank you use. They may scour your social media or internet activity or just guess using a major bank.

Once they discover your bank, they’ll send you communication using various platforms such as email, text, and social media messages.

These messages will appear to be from your bank. But they’re fake messages. The scammers will offer you a deal in exchange for a fee. Or they may ask you to confirm your bank info, including passwords, for their records. They may say there’s been suspicious activity on your account and that they need your passwords. But they’re lying.

A bank will never contact you and ask for sensitive information. If a scammer is claiming to be your bank, their only goal is to steal your money.

Don’t talk to them. Instead, hang up and call the bank, or go online with the bank and have them confirm the information.

Check Fraud

Despite Americans using fewer checks, check fraud suspicious activity reports (SARs) are on the rise. According to Thomson Reuters, in 2024, 682,276 SARs were filed. That’s up from 665,505 in 2023.

Some examples of check fraud include creating fake checks, forgery, and check kiting. Check kiting is when you write a check for an amount greater than what you have in your account and deposit it in another account.

Check washing is also a problem. That’s when the check is washed to replace the original information on a check with new information. Someone could take a check you’ve written to someone else for $50, wash it, and then write it for $500.

You can protect yourself by verifying suspicious checks. If you are suspicious, contact the issuing bank to directly confirm it before depositing it.

Check Overpayment Scam

This one has been up the scammer’s sleeve for decades, but it’s now gone high tech. It goes like this. You sell something online, and the buyer “accidentally” writes you a check for more than the selling price.

The buyer will then ask you to cash the check and send back the difference. You do it—only to find that the check was fake, and you’re out of the money that went to the scammer posing as a buyer. And it’s not just personal checks. This can happen with a cashier’s check.

To avoid being scammed, if you receive a non-cash payment, like a check, call the issuing bank to confirm the check is associated with a legitimate bank account. Never send money until you’ve confirmed the payment is authentic.

Peer-to-Peer Payment Scams

Peer-to-peer (P2P) payments are made between people using services such as PayPal, Venmo, Zelle, and Cash App.

When money is sent from one person to another, the money typically goes directly from one checking account to the other person’s account. There are several scams surrounding these transactions.

Most of these are impersonation scams. For example, the scammer pretends to be a government official, bank, or utility company and asks you to send money. They use spoofing services to trick your caller ID. You should never trust caller ID. Instead, call the party that claims to be contacting you and verify the message.

Scammers will attempt to convince you to Zelle money to yourself to reverse a fraudulent transaction. But instead, you'll end up sending the money to the fraudster. Make it a point to verify identities before sending money. And that means hanging up on the scammer.

To watch out for these P2P scams, once more, don’t trust the caller ID. Scammers can spoof numbers to make them look like your bank or even the IRS. If someone asks you to send money, just hang up and call the organization.

Ensure you double-check payment requests, even if it’s a family member or friend. Call them to verify that it’s them.

ATM Skimming to Steal Debit and Credit Cards

ATM skimming is when scammers steal credit or debit card information by installing recording devices on ATMs. This can also happen at payment terminals such as gas station pumps.

They install a plastic overlay atop the keypad to capture your PIN as you type it. An overlay is also installed over the card insertion slot. The data on the card’s magnetic strip is captured.

With your card and PIN, they can make fake cards, withdraw money, or make online purchases. They sometimes sell these numbers to other criminals.

To protect yourself, see if your bank offers cardless access through a mobile app or digital wallet. If you don’t insert your card, the scammers can’t skim. Try to avoid sketchy machines that look damaged or tampered with.

Verify Before You Make a Transaction

The biggest takeaway today is to verify everything before you open your wallet. Don’t take anyone calling, texting, or emailing at their word. Even if the phone number looks right, they could have spoofed it.

Just assume someone is going to try to scam you, and be prepared.

The Epoch Times copyright © 2025. The views and opinions expressed are those of the authors. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. The Epoch Times does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. The Epoch Times holds no liability for the accuracy or timeliness of the information provided.