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Banking Scams are costly

Steps to take to avoid becoming a banking scam victim

It is no secret that millions of dollars are being lost to scammers worldwide, therefore it is important to have the proper systems in place to avoid being the next victim. Internet scams come in many forms; the most common being phishing scams where the object is to obtain your email address or banking details. Here are some simple steps to take:

1 Don’t log in by clicking on a link

You just don’t know whether the link is from your bank or a scammer these days. It is advisable to type in the URL in your browser.

2 Use a two-factor id

A two factor login is where you log in with an username and password and a text message or an email message where you are given a code to type into the bank’s website.

Here is An example of how two-factor verification works: I sign in to do internet bank with a username and password. I then receive a text message with a code which I then enter to complete the signing process. This code may be sent to your email address if you have chosen to receive this code by email.

3 Use a different email address for your banking

The email address you use for your banking should never be used for other sites such as dating. Scammers will use these sites to try and hack into your email address.

4 Do not connect your debit card to your personal account on any website

I know someone who did this and the website concerned was hacked which exposed the banking details to the hacker. He lost $3,000 as a result.

5 Do not leave all of your money in the one account

If you have a large sum of money for someone’s inheritance or some other purpose then place it into an account which you cannot access through the internet. That way a scammer cannot have access online.

6 When you are using a google account to register with a particular site do not use any gmail account which is used for your banking.

It is worth keeping in mind that sites which hold your personal details may themselves be hacked into which means that your personal details are exposed to cyber criminals. This is what happened to the person who had 3k disappear from his account. It had a happy ending as the bank reimbursed him.

Do not under any circumstances hand over your username, password, or other details if anyone asks for it online. A bank will never ask you for this information.

Www.robertastewart.com

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The tell-tale signs of a scam

The tell-tale signs of a scam

Millions of dollars are lost to scammers every year therefore, it is important to put rules in place in order to not be a victim. Here are 8 telltale signs to look out for.

Sign 1: The return is expected to be 10%+ per annum

Be even more sceptical if they say the investment is low risk. Investments by their very nature have their ups and downs. If it sounds too good to be true it almost certainly is.

Sign 2: Very high past returns

Scammers will try to tempt you by telling you about huge returns they have made in the past. They will select a particular period to present to you or simply exaggerate past returns.

Sign 3: You will be pressured into a quick decision

“Get in now before it is too late” or “act now” are commonly used phrases to get you to sign up. Scammers will prey on the fear of missing out mindset which many people suffer from.

Sign 4: You are approached out of the blue

A stranger approaches you by text, email, or phone with this great offer that is going to make you rich. The truth is they are the ones who are getting rich from this offer.

Sign 5: Free courses or seminars

You are offered a seminar for free or at a minimal cost. The presenters at the seminar can be very pushy and pressure attendees to sign along the dotted line.

Sign 6: Asking for PIN numbers and passwords

This is applicable to email scams. Never, never, never share your PIN numbers and passwords with anyone. Banks will never ask for these. When signing in to your bank type in the URL address and never just click on a link because scammers will set up a fake bank website which looks like the real thing. It is often hard to tell the difference though.

Sign 7: You have won a prize you never entered.

You receive an email saying that you have won a prize in a competition you never entered. This has scam written all over it. Delete the email immediately.

Sign 8: You are asked not to share this opportunity with others

A scammer does not want you to share this so-called opportunity with others; they want you to keep it to yourself. The reason being that others may spot the tell tale signs that this is a scam before you do.

This is all a reminder to be very vigilant and set some hard and fast rules that you never break under any circumstances. Things you can do to prevent being scammed.

1 Never, never, never give out your password or pin number to anyone under any circumstances. 

2 Never click on any email links from any bank; instead, type in the URL address and log in.

3 Do not leave all of your money in one bank account. Invest it in several places.

  1. Do not use the same email you use for banking for signing up to dating websites.

It is a good idea to cut out newspaper clippings from articles about people who have been scammed and learn from other people’s experiences. Take notes of how you can tighten your own security.

About this article

The information provided is based on the writer’s knowledge and experience, therefore discretion is advised as it may not be applicable to your personal circumstances.

www.robertastewart.com

 

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Retiree scammed out of $100,000

Banking fraud is a major problem in the age of technology and there are some very sad stories of people being scammed out of their life savings. This is one of these stories and this could happen to your elderly relative. At the bottom of this article I have included some steps to take in order to protect yourself against banking scams.

Retiree scammed out of $100,000

A New Zealand bank refused to reimburse a New Zealand retiree after cyber criminals gained access to his account and transferred $100,000 from his accounts to an overseas account.

The 71 year old victim believes the scammers hacked into his banking app.

He claims the bank should take responsibility for his loss.

Three unauthorized transactions were made from the pensioner’s account; the first of 49k and two others of $11k and 38k and while the bank was able to stop the $11k and $38k transactions it was unable to prevent the $49k withdrawal which occurred the day before the other two.

Some of the money was set aside as an inheritance for his grandnieces. It is likely they will now miss out on their inheritance.

The bank’s customer who has been with this particular bank for years described the bank’s position on this situation as harsh.

Police had investigated this matter but believed it was between the bank and their customer to deal with. 

The bank had communications with the beneficiary bank in regards to the stolen money and say if they are unsuccessful in recovering the funds then they will not reimburse their customer for the loss.

There was no evidence to suggest that the bank’s own security system was breached and this was made known to the customer. It tends to suggest that somehow the customer’s to blame for this scam. However, he maintains that he did not share his internet banking login or password with anyone or divulged his personal banking details in response to an unsolicited email.

Unfortunately what happened to this pensioner is not an isolated incident. 

Another pensioner was scammed out of $134,000 and his bank refused to reimburse him after they claimed that he did not take adequate precautions.

Precautions against banking fraud

Here are some basic precautions to take to protect yourself against banking fraud:

1 Do not put all of your eggs in the one basket

The pensioner in this story should not have just left all of his money in the one bank account. He should have opened an account with a separate bank and NOT linked it to internet banking and invested his grand neice’s inheritance in this account. 

2 Do not click on links

Do not click on any links on any email you receive even if you believe it is from your bank because it may be from an internet scammer instead. It is safer to type in the URL address instead and just type in the URL address and log in.

3 Do not link your debit card to your personal savings account. Someone I know had $3,000 NZ go missing from his account when the website that had his banking details was hacked. Fortunately the bank reimbursed him the amount.

4 The other precautions are basic common sense ones such as not sharing passwords and changing passwords occasionally.

5 When signing up to a dating or other sites it will pay to use an email address which is different from the one which you do your banking. 

www.robertastewart.com