Texting is a popular way to communicate, and scammers take advantage of this with text scams. Consumers are accustomed to receiving text message alerts from their bank to prevent fraud, so it is not surprising that scammers are now using this to perpetrate fraud.

According to the Federal Trade Commission (FTC) consumers reported $330 million is losses in 2022 due to text scams, the agency examined a randomized sample of 1,000 scams and found that fake bank security messages were the most common type.

A bank text scam looks like a legitimate text message from a bank. The text may look like fraud alerts, payment confirmations, password resets, account suspensions or other activities related to your account.

You may be asked to click a link, call a phone number or respond with a “yes” or “no” reply.

If you click the link, you will be directed to a website that looks like your bank and you will be prompted to enter personal information. If you provide this information it will lead to identity and financial theft, the link may also install malware on your device which allows criminals to gain access and steal more information from you.

If you call the phone number you will be connected to a scammer pretending to be the banks fraud department or a customer service representative, you will be asked for your banking details and other confidential information which will be used to access your bank account, open lines of credit in your name and for other fraudulent activities, your information may also be sold to criminals on the dark web.

If you text back “yes” or “no” it alerts the scammer that you are responding, at that point they may text or call you to obtain personal information.

The messages are designed to instill a sense of fear and urgency so that you feel the need to act quickly to protect your account.

How to Protect Yourself

The utilization of text messaging varies from bank to bank, so it’s important to familiarize yourself with what a true message from your bank looks like, review the banks privacy and text message policy so you know what types of messages your bank will send you.

Banks will not ask you to provide your username or password, MFA code, PIN number, account number or other private information via text message.

Beware of text messages that contain links or phone numbers, if you are concerned call your bank directly at a phone number you know to be true.

Watch for red flags such as formatting errors, spelling and grammar mistakes and anything else that looks unprofessional, but since scammers are becoming more sophisticated their messages often look completely legitimate.

Use a strong, unique password for all of your online accounts, enable Multifactor Authentication (MFA) for every account that offers it.

Don’t trust caller ID, scammers use spoofing to impersonate legitimate phone numbers.

Don’t respond to messages from unknown senders.

Be suspicious of a message or caller insisting that you take immediate action.

Use a secure password manager to store your login credentials.

Never share your passwords, PIN numbers, account numbers or other confidential information with anyone.

Never respond to messages asking for personal or financial information.

Know your bank’s short codes to identify text messages. You can call your bank to obtain this information.

Password protect your computers and other devices.

If you receive a fraudulent text message, delete it and block the number. Report the scam to your bank and to the Federal Trade Commission (FTC)