Common Banking Scams

As we approach festive season, criminals are working even harder to scam you of your hard-earned monies. In 2021/2022, statastics South Africa reported 844 000 consumer fraud cases. Scammers use various methods to trick people into giving up sensetive information like bank account numbers and passwords.

This article lays down about 8 Common bank scams and what you can do to protect yourself.

1.Employment Scams.

Employment Scams are another common way that scammers try to gain access to other people's financial accounts. The scammers promises guaranteed work in an exchange for an up-front fee. They may also ask for account information so they can transfer commission payment to you. This is all a front to get your banking account information, though.

The best way to avoid your bank account or other personal information compromised is to be proactive in managing who has access to it. The potential scams here, while specific to banking are the only part of larger world of identity theft. Because your bank accounts are the means by which you access or interact with so many aspect of the financial life. Scammers are eager to seize an opportunity to expose any vulnerabilities related to your banking.

2. Automatic Withdrawal Scams.

Individuals receive a phonecall or postcard indicating that they've won for a special price. The goal is to get you to read the full numbers at the bottom of your personal checks. They often play this as a way to verify that you quality for the offer.

3. Phishing Scams.

These are scams done frequently using an SMS or emails to trick individuals into sharing person information, that may include other personal information such as passwords, social security numbers, account number and sort.

4. Government Imposter Scams.

Someone will pretend to be a Government official. You will receive a call from the imposter claiming that you've won a prize that requires payment of taxes or fees so they can process it. The scammer may threaten to send you to prison if you don't pay a supposed outstanding debt. The reality is that you will never receive a call from a federal agency asking for payment or any kind.

5. Charity Scams

Scammers also like to take advantage of people's kindness by impersonating charities.They call people asking for donations to a charity or cause. Some scammers goes as far as disguising the phone number, so it shows up as a local area code on your ID caller.

•You can sometimes spot charity scammers by the vague claims they make and lack of tangible ways your donations are used. Scammers also like to use fake names that sounds like the ligitimate.

6.Overpayment Scams.

If you provide services or sell products online, you could fall victim for this type of scam. Overpayment scams typically begin with someone sending you a counterfeit cheque or money order for more than the amount owned. Then they ask you to deposit the money in the bank and wire the difference back to you.

7. Cash-checking Scams

Another scam involving checks is the cash-checking scam. The scammers prey on the compassion and generasity of other people. An individual approaches you outside a bank or any other financial institutions asking if you will check a check for them. They may mention that they do not have an account at this particular bank but needs the money.

8. Unsolicited Check Fraud.

Have you ever received a check in the mail that you weren't expecting? It could look like a rebate check or a refund for overpayment. Inspect the check thoroughly, paying close attention to any fine print on the front or back. There's a chance that you entering into a legally binding contract by signing check and cashing it. Scammers use tactics like this to get to authorize memberships, loans and other longer-team commitment that could cost you dearly.

How to protect yourself-:

•Don't cash cheques for other people

•Don't share your personal information

•avoid high pressure sales tactics, don't accept sales pitch that forces you to act quickly.

•avoid paying fees

•file a complaint if you feel you've been a victim of scam

•use your best judgement if something doesn't feel right to you, take actions.