Scams That Drain Your Bank Account

Scams that drain your bank account



How would you react to an email like this? Most of us would respond similarly: either hit the delete button or send it to the spam folder. Email scams are among the easiest ways of scamming people, and while most of us don’t pay any attention, the number of scam emails doesn’t look like it will decrease anytime soon. Despite being the most common scams, email scams are not the only scams you should know.

Bank scams are not only troublesome but also tricky to spot. When someone says they are from the bank and asks your credit card number for legal validation, what do you do? It is hard to distinguish the individual on the other side of the call. Despite regular attempts from banking authorities to protect their customers from scams, many people are tricked into banking scams every day. And the only way you could get around these scams is by knowing how they work. You need to start thinking like one if you want to evade a scammer.

Cheque overpayment scams

Cheque overpayment scams can be real trouble if you are selling something online. In this scam, the buyer will purposefully write you a cheque for an amount greater than the product’s price. They will then ask you to return the excess amount feigning a mistake.

The problem is that sometimes these people look like genuine buyers, so you don’t think twice about sending back the extra money. But the moment you send their cash back to them, they disappear. By the time you realize that the check is fraudulent, the buyer will be long gone, and there’s no way of knowing whether they will return your items or just disappear with all the money.

The best way to evade cheque overpayment scams is to flag any checks from an unknown source. If you have received a valid cheque, wait for the money to go through. You can also ask your bank how long it takes for the cheque to clear so that you can spot fraudulent cheques early on.

Credit card scams

Credit cards are owned by everyone nowadays. Whether buying something online or paying for your utilities, almost everything can be done using a credit card. With greater convenience comes greater risk. Credit card scams have grown extremely popular in recent times. Some scams involve the victim paying before receiving any product; others could go as far as making you reveal all your bank details in exchange for an offer, which is too good to miss out on.

So what’s so different about credit card scams? And how do you spot them? There are times when people fall into these traps because they are in desperate need of something and buy it from shady online stores. To evade credit card scams, keep an eye out for anything suspicious, like people asking for your card numbers or other confidential information without giving a good reason why. If someone calls you claiming they are from the bank, hang up the phone and call the bank yourself. You will quickly determine if you were about to walk into a scam or if the bank really needed the said information.

Charity Scams

Charity scams are among the most common types of bank scams. If you are not careful, they could easily convince you to send them money and make a run for it.

There is no sure-fire way of spotting a scam when it comes to charities, but there are some warning signs that should make you wary. For instance, if someone asks for donations over email or phone without giving any proof that their cause exists. Also, if anyone claims to represent an organization you have never heard of, hang up the phone and start googling.

Online Lending Scams 

If you are someone who has taken loans in the past or plans to do so anytime soon, watch out for online lending scams. These people offer interest rates that are too good to be true!

Like all other bank scams, lending scams also come with plenty of warning signs. For example, an outrageous return on investment is improbable unless there’s something fishy going on behind the scenes. Conversely, something like an interest-free loan probably doesn’t exist. If the interest rate is too good to be true, it probably is.

Employment Scams 

The employment scam targets unemployed people desperately looking for a job. The scammer reaches out to you with a good job offer. But before letting you in on the offer, they ask for a fee. This scam usually targets job seekers by offering jobs that never exist! They will then charge an upfront fee and disappear into thin air. The best way to evade these is to avoid working with companies that want a finder’s fee before disclosing the job.

While various bank scams target your money, ones involving charities and online lending schemes should be avoided at all costs. For anything else, make sure you do some thorough research before committing to a decision! Remember to keep an eye out for red flags whenever someone asks for sensitive information about your account details or offers too good a deal because these could mean trouble ahead.

Related Blogs

Scams that drain your bank account
Banking & Insurance

Understanding How Insurance Companies Make Money

June 15, 2022
Scams that drain your bank account
Banking & Insurance

Everything You Need To Know About Purpose-Driven Banking

June 7, 2022
Scams that drain your bank account
Banking & Insurance

Beyond The Transaction: Understanding Your Customers On a Deeper Level

June 7, 2022