Scammers are constantly evolving their tactics to exploit banking systems and online transactions. Here’s a breakdown of common banking scams and how to secure online transactions.

Common Banking Scams

1.     Overpayment Scams – Scammers send a fake check for more than the owed amount and ask you to return the excess funds. When the check bounces, you lose the money

2.    Check-Cashing Scams – A fraudster asks you to cash a check for them, claiming they don’t have a bank account. The check later turns out to be fraudulent, leaving you responsible for the funds.

3.    Phishing Scams – Scammers impersonate banks, sending fake emails or texts asking for login credentials. Clicking on these links can lead to identity theft.

4.    Account Takeover Fraud – Criminals steal login credentials through phishing or data breaches, then lock out the real account owner and drain funds

5.    Automatic Withdrawal Scams – Fraudsters claim you’ve won a prize and ask for your bank details. Instead of depositing money, they set up unauthorized withdrawals

Securing Online Transactions

1.     Use Strong Passwords – Create complex passwords with a mix of letters, numbers, and symbols. Change them regularly

2.    Enable Two-Factor Authentication (2FA) – Adds an extra layer of security by requiring a second verification step, such as a code sent to your phone

3.    Verify Website Security – Only enter financial details on sites with “https://” in the URL, indicating encryption

4.    Avoid Public Wi-Fi for Transactions – Hackers can intercept data on unsecured networks. Use a VPN for added protection

5.    Monitor Your Accounts Regularly – Check statements for unauthorized transactions and report suspicious activity immediately

6.    Use Secure Payment Methods – Consider using trusted third-party services like PayPal or virtual credit cards to protect your financial details