Greg's Corner

Tagged: bank scam Toggle Comment Threads | Keyboard Shortcuts

• 

  Geebo 9:00 am on March 4, 2024 Permalink | Reply
  Tags: bank scam, impersonation scam ( 148 ), Scams ( 1,386 ), Wells Fargo ( 11 ), Zelle ( 67 )   

  Is Zelle doing anything new to help scam victims? 

  

  By Greg Collier

  It’s been more than two years since we began tracking the progression of the Zelle scam and efforts by both Zelle and banks to enhance customer protection. Yet, during this time span, it appears that minimal progress has been made.

  Zelle is a digital payment network in the United States that enables users to send and receive money quickly and securely using their mobile banking app or online banking platform. It allows users to transfer funds directly from their bank account to another person’s bank account, typically within minutes. Zelle is often used for peer-to-peer payments, splitting bills, paying rent, and other everyday transactions. Even if you don’t actively use Zelle, it’s frequently integrated into many banking applications, often without the customer’s explicit request or consent.

  If you’re unfamiliar with how the Zelle scam works, we’ll detail the experience of one person who recently fell victim to the scam. A woman from the San Francisco Bay Area recently received a text message that appeared to come from her bank, Wells Fargo. The text message asked if the woman had made a recent Zelle transaction for $957. She responded with a no, and almost immediately she received a phone call from someone claiming to be from the Wells Fargo fraud department.

  The caller told the woman that money was being siphoned from her account. She was then instructed to move her money back into her account using Zelle. The victim even asked the caller why she would counteract fraudulent transfers with more transfers. Instead of giving her a direct answer, the caller just kept repeating to the victim that her money would be reinstated.

  With the caller’s guidance, the victim made several Zelle transactions which totaled $3500, which is reportedly, Zelle’s daily limit amount. After the transfers were complete, the call went silent. The victim called the number back, but there was no answer. She called the genuine Wells Fargo, and was told she had been scammed.

  Recently, Zelle announced plans to reimburse victims who fell prey to specific scams. However, the company has not disclosed the criteria for eligible scams to prevent further exploitation. Apparently, this particular scam does not qualify for a refund. The victim was informed that due to her authorization of the Zelle transactions, no reimbursement would be provided.

  With the proliferation of this scam, it appears that Zelle, Wells Fargo, and other banks co-owning Zelle are merely giving superficial assurances to their customers. There seems to be a lack of substantive changes aimed at safeguarding consumers against such fraudulent activities.

  The most effective way to safeguard yourself is by avoiding falling for the scammer’s tactics. Your bank would never instruct you to move your funds to protect them; that’s simply not a standard procedure. If you receive a suspicious text or call purporting to be from your bank, refrain from responding. Instead, reach out to your bank directly using the customer service number on your debit or credit card. They can provide guidance on any potential issues with your account. Additionally, remember that Zelle is intended for transactions among friends and family. Requests for payment through Zelle from unfamiliar sources could indicate an attempt to scam you.

   

  Leave a ReplyCancel reply
• 

  Geebo 9:00 am on February 15, 2024 Permalink | Reply
  Tags: bank fraud ( 26 ), bank scam, identity theft ( 108 ), impersonation scam ( 148 ), Scams ( 1,386 ), Wells Fargo ( 11 )   

  Widow outsmarts scammers who promised her free money 

  

  By Greg Collier

  In the murky world of scams and deceit, few tools wield as much power and allure as the promise of free money. Like a siren’s call, it draws in unsuspecting victims with tantalizing whispers of effortless wealth and financial freedom. Whether cloaked in the guise of a too-good-to-be-true investment opportunity or masked behind the facade of a generous giveaway, the allure of easy riches proves irresistible to many. Yet, beneath the veneer of generosity lies a web of manipulation and exploitation, leaving countless individuals ensnared in a cycle of deception and regret.

  Senior citizens, with their accumulated wealth and potentially diminished capacity to navigate the complexities of modern technology, are prime targets for these nefarious schemes. Exploiting their trust and often relying on their lack of familiarity with digital platforms, scammers deploy sophisticated tactics to deceive and defraud unsuspecting elders. From bogus lottery winnings to fake government grants, the promise of easy money preys upon the vulnerabilities of aging populations. As guardians of wisdom and experience, seniors become unwitting victims in the crosshairs of those who seek to exploit their goodwill and trust.

  An 80-year-old widow residing in Knoxville, Tennessee, recently found herself targeted by a deceptive ploy. Upon receiving a letter seemingly originating from Wells Fargo, she was informed of being entitled to a $1300 payment from an accidental death insurance mortgage policy. While such notifications are not uncommon, particularly for relatives of deceased individuals, this widow remained vigilant. Aware of the possibility that banks and insurance companies might only become aware of an account holder’s passing years later, prompting them to seek beneficiaries, she approached the situation with caution, avoiding potential exploitation.

  Despite recognizing the telltale signs of a scam, the widow chose to confront the perpetrators directly by dialing the provided customer service number—a course of action often advised against. Displaying a keen sense of skepticism, she posed a straightforward query to the first individual she encountered: “What account did it come out of?” Yet, the response proved evasive, leading to a succession of transfers to two additional individuals, none of whom could provide a satisfactory answer. In her astute interrogation, the widow thwarted the scammers’ attempts to deceive her.

  The method of such fraudulent schemes typically involves soliciting personal and financial information under false pretenses. Had an unsuspecting individual responded to the letter without discerning its fraudulent nature, they would likely have been coerced into divulging sensitive details, such as their Social Security number, bank account information, and other personal identifiers. Operating under the guise of facilitating the transfer of the purported funds, scammers would exploit this information for nefarious purposes, including identity theft and draining the victim’s bank account.

  If ever confronted with a similar letter, email, or text message regarding unexpected funds, exercising skepticism and prudence is paramount. While it’s prudent to largely ignore such correspondence, if there’s even a slight possibility of legitimacy, it’s wise to independently verify the information. Instead of relying on the contact details provided in the message, seeking out the official customer service number from the company’s website ensures direct communication with legitimate representatives, minimizing the risk of falling victim to a scammer’s tactics. By taking these precautionary measures, individuals can safeguard themselves against potential financial exploitation and identity theft.

   
• 

  Geebo 9:00 am on February 2, 2024 Permalink | Reply
  Tags: bank scam, citibank ( 2 ), lawsuit ( 47 ), new york ( 16 ), Scams ( 1,386 )   

  State sues bank for refusing to help scam victims 

  

  By Greg Collier

  Over the past few years, there has been a tremendous surge in banking scams that target consumers. While these scams take many firms, they all have one thing in common. Scammers will pose as the victim’s bank while directing the victim to move their money. Even when they’ve been promptly notified by their customers, many banks have refused to assist scam victims. The banks have argued that since the customers allowed access to their accounts, even under deceptive circumstances, they are still responsible for the fraudulent transactions. However, a state office has taken exception to this stance and is actively seeking to address the issue on behalf of scam victims.

  The New York Attorney General’s Office has initiated legal action in the US District Court against Citibank, one of the country’s major financial institutions. The lawsuit alleges that Citibank engaged in illicit and deceptive practices by rejecting the claims of scam victims in New York. Additionally, the bank is accused of maintaining inadequate security measures to safeguard customer accounts, disregarding warning signals, and responding inadequately to fraud alerts.

  The New York Attorney General’s office highlighted two specific instances in its legal filing where it alleges Citibank failed to uphold its responsibilities. In the first case, Citibank attempted to verify a $35,000 wire transfer, but when the customer was unavailable to answer her phone, the bank approved not only the initial fraudulent transfer but also a second one of the same amount. Furthermore, in another incident, when a customer fell victim to a fraudulent link in a text message and reported it to their local Citibank branch, they were reassured and told not to be concerned. Subsequently, scammers managed to siphon over $100,000 from the customer’s account. In both situations, Citibank allegedly denied the fraud claims made by the affected customers.

  In a statement to Ars Technica, Citibank defended their practices when it comes to scam victims with the following statement…

   “Banks are not required to make clients whole when those clients follow criminals’ instructions and banks can see no indication the clients are being deceived,” the company said.

  The recent incidents involving Citibank underscore the pressing need for a reevaluation of the role and responsibility banks bear in safeguarding their customers from scams. The New York Attorney General’s lawsuit sheds light on instances where the bank’s actions may have fallen short, leaving customers vulnerable to substantial financial losses. As technology advances and scams become more sophisticated, the question arises: should banks not only enhance their security measures, but also be held more accountable for the repercussions of fraudulent activities? Striking a balance between customer autonomy and robust protection mechanisms is crucial, prompting a broader discussion on how financial institutions can better shield their clientele in an evolving landscape of cyber threats.

   
• 

  Geebo 9:00 am on January 11, 2024 Permalink | Reply
  Tags: Amazon ( 108 ), bank scam, brushing scam ( 24 ), customer service ( 50 ), impersonation scam ( 148 ), Scams ( 1,386 ), Wells Fargo ( 11 )   

  Bank refused to stop fraudulent wire transfer 

  

  By Greg Collier

  A man from Utah fell victim to two different scams, which resulted in scammers taking $10,000 from his bank account.

  The first scam that targeted him was the brushing scam. He was receiving several deliveries from Amazon that he didn’t order. Third-party Amazon vendors do this to game the review system, so phony reviews can have the ‘verified purchase’ tag added to them. This scam can be relatively harmless to consumers unless their Amazon account has been compromised, which this man wanted to find out.

  The second scam he fell into was a customer service impersonation scam. He Googled the number for Amazon’s customer service department, which wasn’t Amazon at all. Instead, it was a scammer’s call center posing as Amazon. Scammers will often pay search engines to have their scam phone number placed higher than the actual company they’re imitating. The phony Amazon rep told the man that it appeared someone had wired $10,000 to New York without his permission. Amazon, and other retailers, cannot access your bank records, if you think you’re speaking with Amazon, and they ask for your banking details, the odds are you’re being scammed.

  When the phony rep asked for the man’s credit card information, he realized he was being scammed. He went to his local Wells Fargo branch, since that was who he banked with. The branch manager told him there was, in fact, a wire transfer going out to New York for $10,000. When the man asked the manager to stop the transfer, he was instead referred to Wells Fargo’s fraud department, who told him that would investigate the matter and get back to him in ten days. It only took one day for the $10,000 to disappear from the man’s account. When the fraud department finished their investigation, they denied the man’s claim, saying that someone using the man’s username and password made the transfer, which made the man responsible for the financial loss.

  Mysteriously, once the man contacted his local TV news station about the matter, Wells Fargo reimbursed his money. As we have detailed in previous stories like this one. That seems to be the only way bank scam victims can get a refund, and even then, it’s not a guarantee.

  To safeguard yourself, it’s advisable to visit the official website of a company to obtain accurate contact information for addressing any issues you may encounter. Relying on contact details obtained through online searches can be unreliable. Additionally, refrain from sharing passwords or passcodes with anyone, and avoid granting remote access to your laptop or phone unless you initiate the call using the authentic contact number. Financial institutions typically request passwords or passcodes exclusively through their official app or website.

   
• 

  Geebo 9:00 am on November 14, 2023 Permalink | Reply
  Tags: bank scam, impersonation scam ( 148 ), impostor scam ( 16 ), Scams ( 1,386 ), Zelle ( 67 )   

  Is Zelle issuing refunds to scam victims? 

  

  By Greg Collier

  Since this past June, thousands of banks that use the Zelle payment app have been issuing refunds. Why are these banks issuing refunds? For at least the past two years, Zelle has been a boon to scammers. Zelle has been instrumental in allowing scammers to take money from their victims.

  Primarily, Zelle is used in bank impersonation scams. They start out when a victim receives a text message that appears to have come from their bank. The message asks the victim if they recently made a large purchase or transfer and to reply with yes or no. Once the victim replies, the scammers call the victim while posing as the bank’s fraud department. The victim is told their bank account has been compromised, and they need to move their money to a safe account to protect it. The scammers walk the victim through instructions on how to transfer the money to the safe account on Zelle. Then the victim unknowingly transfers their money to the scammer’s account.

  The banks that implement Zelle have been hesitant to issue any refunds to customers. They typically claim that since the customer authorized the payment, there are no grounds for a refund. The banks also claim if they start issuing refunds, then scammers will try to work their way into the refund process.

  In that vein, Zelle has been pretty quiet about how consumers can go about requesting a refund. Nor has it given any indications on any kind of timeline for refunds or whether refunds can be requested retroactively. However, in their defense, Zelle has enacted new prompts within the app that are supposed to warn users if the app feels like the user is making a risky transfer. Zelle claims this has significantly cut down on scams.

  But the best way to protect yourself is to not take the scammer’s bait. Your bank will never tell you that you need to move your money to protect it. That’s just not a thing. If you receive a text message or phone call that claims to be coming from your bank, do not respond. Instead, call your bank at the customer service number from your debit or credit card, and they’ll be able to advise you on if there is anything wrong with your account. And also keep in mind that Zelle is only supposed to be used between friends and family. Anyone else who is asking for payment through Zelle could be trying to scam you.

   
• 

  Geebo 8:00 am on October 26, 2023 Permalink | Reply
  Tags: bank fraud ( 26 ), bank scam, fraud department, impersonation scam ( 148 ), Scams ( 1,386 )   

  Elaborate bank scam wipes out life savings 

  

  By Greg Collier

  One of the more common scams lately is the bank impersonation scam. This scam can start out with either a text message or a phone call. In either case, the scammers are posing as your bank’s fraud department. They tell you that there’s been fraudulent activity on your account, or your account has been hacked. You’re then instructed you need to move your money to protect it. This typically results in the scammers having you send them your entire bank account through electronic means like payment apps or cryptocurrency, or through more manual means like gift cards or wire transfers. Usually, these scams take less than a day to occur and sometimes can happen in just minutes. However, one bank scam strung a victim along for a month.

  A woman from Wisconsin lost her life savings of $200,000 to scammers like this. They initially made contact with their victim by posing as Wells Fargo’s fraud department. They called her and told her that her identity had been stolen. The victim even says there were unusual transactions she didn’t recognize on her bank account.

  Then she was transferred to someone who claimed to be a federal agent for the Federal Trade Commission. That person had a lot of personal information about the victim, including her Social Security number, former addresses, and where the victim attended college. They even sent her copies of the supposed agent’s badge and ID card.

  The scammers told the victim to close all of her financial accounts in order to open new accounts with a new Social Security number. Or in other words, they wanted her to move her money. The victim sent the scammers her money through money transfers, gift cards, and cryptocurrency. All the while, they were sending her certified letters that appeared to come from an attorney, which lent legitimacy to the scam.

  Another tactic scammers like this use is threatening their victim with arrest, which was also done here. The scammers told the woman if she didn’t comply, she would be arrested for money laundering.

  As always with scams like this, if you receive a call from your bank about fraudulent activity or identity theft, hang up. Then manually call the bank at their correct customer service number, which can be found on their website or on the back of your debit card.

  It’s also recommended if you receive a phone call like this to reach out to family and friends to get their feedback.

  Also, please keep in mind that if your identity is stolen or your bank account is hacked, no one is going to call you. To the banks, they consider it the customer’s responsibility to report any unauthorized transactions. And moving your money, or paying yourself to protect it is not a real procedure.

   
• 

  Geebo 8:00 am on October 13, 2023 Permalink | Reply
  Tags: bank scam, customer support ( 23 ), debit cards ( 15 ), impostor scam ( 16 ), Scams ( 1,386 )   

  New bank scam has scammers collecting your debit card 

  

  By Greg Collier

  Bank impersonation scams are nothing new. The typical banking scam starts off with a text message asking if you have made a large purchase or transfer. The text message asks you to reply with either a yes or a no. Once the victim replies ‘no’, they’ll receive a phone call from the scammers, posing as their bank’s fraud department. The victim will be told there is fraudulent activity in their bank account, and they need to ‘move’ their money to protect it. From here, the scammers walk the victim through moving their money to a supposed protected account. However, this account belongs to the scammers, who disappear with the victim’s money.

  In that version of the scam, the scammers have the victim move their money electronically. Now, a new scam has developed, where the scammers are physically collecting their bounty. This new scam starts out the same way with the text message and the phone call. Instead of being told to move their money, victims are now being told that a courier will be by to pick up their compromised debit card. Some victims were even told to leave their debit cards in their mailbox for the courier to pick up. From there, the scammers take the victim’s money from nearby ATMs.

  Thankfully, the ways to protect yourself are still the same. If you receive a text message claiming to be from your bank, do not respond to it. Instead, call the bank directly to see if there is an actual issue with your account. If someone calls you claiming to be from your bank, politely end the conversation, and again, call your bank directly to ask about any issues. Lastly, don’t give any personal information to a caller claiming to be from the bank. Your bank should have all the information they need and shouldn’t be requesting information like your PIN or account number.

   
• 

  Geebo 8:00 am on August 7, 2023 Permalink | Reply
  Tags: bank scam, customer service ( 50 ), impersonation scam ( 148 ), Scams ( 1,386 ), Zelle ( 67 )   

  Scammers easily avoid Zelle warning 

  

  By Greg Collier

  In the news article we read about the latest chapter in the Zelle scam, it says that the Zelle scam is back. To be honest, it never went away. For almost two years, we’ve been documenting how the personal payment app has been used by scammers to defraud victims out of their money. As far as we know, there has been no break in this scam’s activity.

  For the uninitiated, the Zelle scam works like this. The victim receives a text message inquiring whether they have recently made a substantial purchase or transfer. The victim is instructed to reply with a simple yes or no. After the response, scammers follow up with a phone call, pretending to represent the victim’s bank’s fraud department. The fraudsters then urge the victim to safeguard their bank account by either transferring their funds or using Zelle to “pay themselves.” However, what actually happens is that the scammers are guiding the victim through the process of transferring funds to the scammers’ account through Zelle.

  Since these scams have started, it doesn’t appear as Zelle has done much in the way of consumer protection. If you do make a money transfer using Zelle, a warning does appear, which advises users not to send money to anyone they don’t know personally. Yet, the scam persists. So, what clever trick have the scammers devised to circumvent this warning? Is it nefarious malware that suppresses the warning? Not exactly. The scammers are simply telling their victims to ignore the warning. That’s it.

  Now, keep in mind the scammers are posing as the victim’s bank, who are supposed to have the final authority on a customer’s account. I’m sure we’ve all had to follow instructions at one point where we told to just ignore something. To us, this exhibits the poor protection Zelle has for its users, rather than any fault of the victim.

  It’s important to note that Zelle is intended for use strictly among friends and family, those you have a personal relationship with. Be cautious of any unfamiliar business or individual requesting payment through Zelle, as this could be a potential scam attempt. Remember, your bank will never ask you to move your funds using Zelle.

  If you find yourself falling victim to this scam, your initial step should be to promptly file a police report. While it doesn’t guarantee a refund, taking this action can significantly aid your situation. Moreover, if you believe your bank is not treating you fairly, don’t hesitate to reach out to a consumer advocate reporter in your local area for assistance. Their involvement can provide you with the support you need.

   
• 

  Geebo 8:00 am on July 31, 2023 Permalink | Reply
  Tags: bank scam, banks ( 7 ), customer service ( 50 ), impersonation scam ( 148 ), paypal scam ( 13 ), Scams ( 1,386 )   

  Do banks only help scam victims when the news gets involved? 

  

  By Greg Collier

  When we started posting about Zelle scams is when we first discovered how unhelpful banks can be when it comes to those who fell victim to these scams. Scammers will walk the victim through the Zelle app to have them transfer money to the scammers under false pretenses. Since the victim made the actual transaction, many banks will tell the victim they can’t get their money back. To the bank, or so they claim, the transaction looks authentic to them, so they can’t issue a refund to the victim.

  However, occasionally, victims will have their money returned to them after they tell their story to their local media. This typically involves the victim going to their local TV news consumer reporter. In turn, the reporter asks the bank for comment, which more often than not results in the bank issuing a refund.

  For example, a Massachusetts woman recently fell for a scam which resulted in her bank account being emptied by scammers. She received a call from scammers who were posing as PayPal to tell her there was in issue with her account. The scammers sent her a link to click on, and when she did, scammers took control of her phone. Before she knew it, $3500 was gone from her bank account.

  Her bank allegedly denied her claim until her local news station got involved. The bank reportedly claimed they reversed their decision after their decision after the victim provided additional information.

  But are these bank refunds a result of the plane crash principle? The principle says that we only hear about the planes that crash, but we don’t hear about the vast majority of planes that continually land safely.

  Are banks issuing refunds to scam victims without the media getting involved? We’d like to think they are, but somehow, we doubt it. As someone once told us, banks are in the business of making money, not issuing refunds. Not to mention, if banks started issuing refunds on demand to scam victims, it won’t be long before scammers start claiming they’ve been the victims of scams.

  The banks need to implement better initiatives to protect their customers from scammers. Education has not been enough, as scammers often intimidate their victims into ignoring the education. If just one major bank came forward with a new program to protect their customers from scammers, we’re sure it would not only be great PR for them, but they would probably attract many new customers.

  However, it will most likely be a long time before that happens. In the meantime, we need to look out for ourselves. If you receive a phone call from any company related to money, like PayPal, Zelle, Venmo, or even your own bank, hang up, and call them back at the company’s official customer service number. You can find these numbers, if the company has one, on their website under the contact section.

   
• 

  Geebo 8:00 am on June 23, 2023 Permalink | Reply
  Tags: bank fraud ( 26 ), bank scam, impersonation scam ( 148 ), robocalls ( 8 ), Scams ( 1,386 )   

  Like we need another bank scam 

  

  By Greg Collier

  We’re pretty sure it goes without saying that bank customers are one of the largest targets of scammers. If we’re not being assailed by text messages telling us to protect hacked accounts through Zelle, our debit card information is being stolen through skimmers, or people are trying to get us to deposit phony checks. Now, bank scammers are pulling an old scheme which seems almost antiquated by today’s standards.

  According to a report out of Florida, several residents have received robocalls from scammers posing as banks. And we say banks, we mean a few different banks. At one point, a potential victim could receive a robocall that says it’s from Bank of America, while getting one shortly later that says they’re from Wells Fargo. However, both robocalls say the same thing.

  The robocalls will tell you a purchase you made with your debit card has been declined, and your card has been blocked. The message also provides a customer service number for the recipient to call. The customer service number leads to a scam call center, where the scammers will attempt to obtain not only your financial information but, possibly, your money as well.

  If you were to get one of these robocalls, and it says it’s from Bank of America, and you actually bank at Bank of America, that’s a coincidence. That also goes for most of the major banks. Scammers will set out the widest net possible in order to catch as many potential victims as they can.

  If you receive one of these robocalls, do not call the number they leave. Instead, call your bank’s customer service number from the back of your debit card. If you were to call the scammers’ number, they would only need a little bit of information or a touch of misdirection before they could empty your account and disappear into the wind.