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Text messages from your credit card servicer or financial institution can come in handy, especially when you want to stay up to date regarding transactions or purchases. On the other hand, some of these messages may sound suspicious and try to get you to act immediately.

That’s because scammers also use messaging platforms to trick people into divulging sensitive information or conducting fraudulent transactions. They do this by impersonating a financial institution, like your bank or credit union.

They may send a message claiming that something is wrong with one of your accounts and that you need to take action, such as sending login credentials, to resolve the issue. This is the core tactic of a bank alert scam, and incidents such as these are on the rise.

By understanding what a bank alert scam is and how to identify common warning signs, you will take smart steps towards preventing fraud. Let’s talk about this scam and the strategies you can employ to protect yourself from theft.

What’s a Bank Alert Scam?

Bank alert scams occur when fraudsters impersonate a financial institution to steal personal or financial information.

These scams often take the form of text messages, a tactic commonly referred to as “smishing” (SMS phishing). In a smishing attempt, a thief sends a text message to convince someone to act quickly.

They may want the recipient to:

• Disclose sensitive information.
• Click a link to a suspicious website.
• Download a file.
• Conduct a financial transaction.
  

Bank alert scams are a type of imposter scam in which a thief pretends to be a trusted entity. In this case, it may be your financial institution, credit card servicer, or investment brokerage.

Bank alert scams are particularly risky because they often carry a sense of urgency. They prey on someone’s fear that their finances are at risk, and action must be taken as quickly as possible. In turn, the context of a bank alert scam might include messages like:

• “Alert: Did you authorize a purchase?”
• “Your account has been frozen due to suspicious activity.”
• “Verify your account now to prevent cancellation.”
  

Responding to these messages may lead to other steps in a scam, such as:

• Receiving a link to a fake website that is waiting to record sensitive information.
• Getting a phone call from someone claiming to be from the financial institution.
• Continuing the text message chain, trying to get someone to provide more information.
  

In all the above scenarios, the end goal remains the same: getting the scam target to take an action that reveals their sensitive information. Scammers can then use this data to access accounts and steal identities.

What Are the Common Warning Signs of a Fake Bank Alert?

Scammers try very hard to make fake bank alerts look like the real deal. However, there are common red flags. When you know what to look for in this type of scam, you’ll be better prepared to avoid them.

The first sign is the use of urgent or threatening language. Scammers often instill a sense of panic to pressure others into acting quickly. They might compose their fraudulent messages to say:

• “Your immediate action is required.”
• “Your account is facing closure.”
• “Verify your login now to prevent fraud.”
  

Urgency can get people to act hastily, which is exactly what scammers want.

Another symptom of a bank alert scam is the use of suspicious links. In addition to the messaging above, a fraudulent text may include a link that requests the recipient to verify their login information.

Clicking on the link may direct the recipient to a spoofed site that closely resembles the login portal of a known financial institution. If you were to enter your information on these fake sites, scammers would be able to capture your login credentials.

Finally, a fake bank alert may request your sensitive information. Scammers may ask for your information via text message instead of redirecting you to a malicious website. Common personal details they request may include:

• Online banking passwords
• Multi-factor authentication codes
• Debit or credit card numbers
• Your account numbers
• PINs or card security codes
• Social Security Numbers
  

Legitimate financial institutions will never request sensitive information through an unexpected text message. If you ever receive a message that requests your information without prompting, it is likely a bank alert scam.

Protect Yourself From Bank Alert Scams

Receiving an urgent-sounding message can cause anyone to act on impulse. However, by taking a moment to pause and exercising healthy skepticism, you can protect yourself from bank alert scams. Here’s what you should do if you receive a suspicious message.

First, here is a common industry practice: representatives from a legitimate business or organization will never initiate communication to request login credentials, account numbers, or any other sensitive information. If the contents of a text message ask for any of these things, there is a good chance it is a scam attempt.

If you feel uneasy about a bank alert, contact your financial institution directly. Never use the callback feature on your phone, as scammers can spoof phone numbers. Know your financial institution’s contact number and speak with a representative to verify any communications you receive. Be familiar with your financial institution’s phone number. You can also find the right contact number on the back of your credit or debit card.

Also, never share sensitive information by text, and avoid clicking links in unexpected messages. If you receive any message that randomly asks for PINs, passwords, or MFA codes, it’s almost certainly a scam. Likewise, it’s always better to navigate to your financial institution’s website directly than to click on a link in a random text message.

Finally, avoid and report suspicious messages. After you’ve confirmed that a scam is afoot, delete the message immediately and report it to your financial institution. Reporting scams helps authorities track fraud trends and warn others.

You Have the Power To Stay SAFE

While fake bank alerts can feel threatening, it’s reassuring to know you can prevent identity theft. By knowing the warning signs and how to respond to these scam attempts, you will be better prepared to avoid scammers’ tricks. Stay alert, take your time, and exercise healthy skepticism.

To learn more about the latest fraud alerts, visit our Scam and Fraud Education page.