The digital revolution has transformed our lives, but it’s also opened doors for cybercriminals. While banks constantly develop new security measures, online fraud is rising. This can be attributed to several factors, including:

• Evolving tactics: Scammers are constantly innovating, creating new phishing schemes, and exploiting vulnerabilities in digital systems.
• Data breaches: Large-scale data breaches expose personal information like names, addresses, and even Social Security numbers, which can be used for identity theft and fraudulent account creation.
• Lack of robust security: While most banks implement security measures, some may have outdated systems or lack the resources to stay ahead of the curve. This leaves customers vulnerable.

The consequences of online fraud can be devastating. Financial losses can range from thousands to tens of thousands of dollars, and recovering stolen funds can be a lengthy and stressful process. Beyond financial losses, online fraud can also damage your credit score and lead to identity theft, causing additional headaches and financial burdens.

Here’s a breakdown of prevalent online scams and how to identify them:

• Authorized Push Payment (APP) Fraud: Scammers impersonate legitimate businesses or individuals to trick you into authorizing payments to fraudulent accounts. This can involve fake invoices for non-existent services, requests for “overpayments” to be “refunded,” or compromising a company’s online banking system to initiate unauthorized transfers.

Be wary of unsolicited requests for payment, especially if they involve urgency or pressure tactics. Always verify the legitimacy of a business before sending money, and never share financial information through unverified channels.

• Deposit Refund Scam: Scammers claim to have accidentally deposited money into your account and request you to “repay” the difference. This is a trick to steal your money.

Never send money back without verifying the transaction with your bank directly. Legitimate institutions won’t ask you to return funds via unconventional methods.

• Vishing: A combination of “voice” and “phishing” involves scammers impersonating bank representatives over the phone. They may claim to confirm account details, detect suspicious activity, or request remote access to your device to “fix” problems.

Banks rarely contact customers about urgent matters via phone. If you receive a suspicious call, verify the caller’s identity by contacting your bank directly through a trusted phone number (not one provided by the caller). Never share personal information or grant remote access over the phone.

• Payment Card Fraud: Scammers steal card details through various methods, including physical theft, skimming devices (copying card data at ATMs or point-of-sale systems), or tricking you into revealing information over the phone or fake websites.

Be mindful of your surroundings when using your debit or credit card. If you suspect your card has been compromised, immediately report it to your bank and cancel it. Consider using chip-enabled cards that offer better protection against skimming.