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Be Aware of These Common Examples of Consumer Frauds and Scams

June 28, 2022

At Texas Gulf Bank, one of our biggest points of emphasis is helping our customers bank safely and securely using the Internet. We have built a robust security system that enables us to detect fraud and alert our customers to suspicious activity in their bank accounts.

We emphasize security because consumer frauds and scams are on the rise. In fact, a new report from financial security consultancy NICE Actimize discovered that banking fraud attempts rose by 41% in 2021 compared to 2020 (as reported by Banking Exchange staff).

Our goal is to help educate our customers about the types of frauds and scams out there to keep you protected. We want you to be equipped with the latest information so that you can quickly identify suspicious activity and be prepared to take the right action.

Let’s review some common examples of the current, most prevalent consumer frauds and scams. Together, we can help protect your assets and provide you with greater peace of mind!

Examples of Consumer Frauds and Scams To Be Aware Of

Consumer fraud is becoming more sophisticated as fraudsters refine their approaches. These fraudsters aren’t just solo actors sitting in a dark room trying to find easy targets to make a quick buck.

Many times, fraudsters operate in groups, and they run their operation like a sophisticated business. Here are some of the most common scams that fraudsters are using right now trying to gain access to consumers’ money and bank accounts.

Romance scams. The Federal Trade Commission (FTC) is specifically focused on romance scams in which fraudsters use online dating apps or social networking sites to trick users into sending them money.

Scammers will make up stories about needing money for a surgery, plane ticket, travel documents, or other reason, then ask their targets to send money. If you use dating apps, then be aware of these common signs of fraud identified by the FTC.

Fake lottery. In this scam, fraudsters attempt to reach people with information claiming that they have won a fake lottery. You might see a suspicious-looking email or another form of communication that claims that you won a certain amount of money. The fraudster will ask you to scratch off the “winning numbers” and tell the fraudster what the codes are. You could inadvertently give the fraudster access to your accounts or personal information.

Social Security fraud. Fraudsters are ramping up their efforts to target retirees with false claims related to Social Security. They will ask for your Social Security information because they allege that you owe money and need to pay up. Or, they will claim that there is a problem with your account or SSN number.

Do not continue to communicate with an individual who claims to represent the Social Security Administration with these types of threats. SSA staffers do not call individuals directly if there is an issue. They send a letter.

Online job scams. Fraudsters are targeting job-seekers who are in-between jobs or looking for a new job opportunity. They will set up a fake job listing and lure in people with a complex income distribution scam.

For example, they will send a “paycheck” to your bank account in an amount that is far more than one person should receive. Then, they will ask you to distribute the remaining funds to other parties. Or, you will receive a check and then you will be instructed to send back the majority of the check in various ways. You could find yourself unknowingly participating in money laundering or other illicit activity sending money to other countries.

Car wrap scams. Another scam on the rise is car wrapping. While there are legitimate opportunities to make money by wrapping your car in advertising, there are also car wrap scams that target folks looking to earn extra income.

Similar to the online job scam, you will receive an amount that exceeds what you should have received for wrapping your car. Then, you will be asked to wire a portion of the money back or send the additional income elsewhere. Visit the FTC website to learn more about how to spot this scam.

Real estate “advisory” scams. Another example of consumer fraud that is on the rise is a scam related to buying or investing in real estate. Scammers will approach you with information about a great opportunity to purchase available real estate that you can develop and flip to allegedly make a profit. They will advise you on how to connect with a certain individual who can provide you with further information about this “great opportunity.”

However, it’s a “pay to play” scam where you must put down a certain amount of money to tap into this so-called real estate opportunity. Or, you will be asked to provide your bank account information to complete the transaction.

Once they receive your money (or take the money from your account), then they disappear and you have no way of tracking down the person who defrauded you. We encourage our customers who are involved in real estate or who are interested in getting started in the real estate market to be aware of these types of scams.

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How Texas Gulf Bank Protects Customers from Consumer Frauds

Fortunately, you don’t have to go it alone trying to protect yourself and your financial assets from frauds and scams. Our dedicated Fraud Center monitors debit card transactions and our Fraud Prevention Program helps monitor check deposits and withdrawals, ACH bank transfers, and other account transactions for suspicious activity.

We actively monitor our customers’ accounts for the following types of activity:

  • Suspicious transactions of any kind that do not appear to be consistent with your regular banking activity.
  • Large checks coming into or leaving your account that appear to be in amounts that are higher than usual.
  • Large ACH debits or credits for unusual amounts or several individual transactions.
  • Debit card transactions where it appears that a fraudster has gained access to your PIN and/or debit card. (For example, we advise our customers to never use your PIN at a gas pump because fraudsters commonly target gas stations to lift personal information from consumers.)

Our system and our people are actively looking for anything that raises even the tiniest red flag. This enables us to spring into action protecting your financial assets and providing you with quick support to minimize the effects of any fraud.

– You can also do your part by signing up for secure online banking through Texas Gulf Bank and then regularly monitor your account. We encourage you to check your account daily so that you can quickly spot anything unusual and alert us about the activity.

Then, at the end of the month, you should always look at your bank statement to spot anything unusual that you did not notice during the month. If you find something that looks fishy , we can initiate our recovery process to help recoup any lost funds that resulted from the fraudulent activity.

Additionally, we encourage our customers to never share banking information with anyone that seems suspicious. You can use our secure online banking system to set up bill pay and complete other ACH transactions with legitimate entities. However, if anyone explicitly requests your banking information, be very careful about who is asking for information. Remember the examples of consumer frauds and scams that we highlighted in this article!

Final Reminders About Protecting Your Consumer Account

Consider our final reminders about how to protect yourself and your bank accounts.

  • Be aware that you will rarely ever get something for free. If it sounds too good to be true, then it probably is.
  • Do not share your banking info, account number, routing number, debit card number, etc. with anyone unusual who asks for it.
  • Never “pay to play,” meaning never send money back for a job or to participate in an “opportunity.”
  • Always keep your contact information up-to-date with our bank.

On the last point, if we detect unusual activity in your account, then we will contact you to alert you of suspicious activity. Unfortunately, there are times when we do not have the latest phone number for each customer or we do not have a good email on file. If you change your phone number or email, please be sure to update this information in your banking profile so that we can quickly get in touch with you.

Finally, if you ever encounter a suspicious email, phone call, or another form of communication that asks for money or personal information, please contact us right away to speak with a member of our team. As your banking partner, we can review the unusual communication and provide you with specific support.

We are here to help protect you from frauds and scams. Our team is proactively working around the clock to provide you with a secure banking experience at Texas Gulf Bank!