How to Recognize Common Bank Fraud Tactics

Bank fraud can set you back financially and make it easier for someone to steal your identity. With 67% of financial organizations reporting that fraud incidents are increasing, according to security firm Alloy, it’s important to know what to look for so you can protect yourself.

Fifth Third Bank deploys many tools and services to spot and reduce fraud, such as 24-hour online monitoring through Fifth Third Identity Alert^®. But customers still need to keep a watchful eye. Education can help you curb the efforts of bad actors. Here’s what you need to know to stop bank fraud in its tracks.

Key takeaways:

• Banking scams come in many forms, and the risk of becoming a victim is increasing. Understanding how scammers operate can help you better protect yourself.
• Fifth Third Bank has tools and resources designed to help spot fraudsters before they can inflict too much damage.
• Common types of bank fraud include phishing emails, phone scams, fake banking sites and account takeover attempts.

Why fraud awareness matters

If you ask three victims, "what is bank fraud?" you might get three different answers. Bank fraud describes a range of deceptive practices that aim to steal money from a bank or its customers. Examples include committing wire fraud, opening fraudulent accounts in a victim’s name and stealing credit or debit card numbers.

Scammers work in a variety of ways. For example, a fraudster might call you claiming to be a representative from your bank. Having obtained your username for online banking through a data breach, the caller may say they noticed suspicious activity on your account. Under the pretense of verifying your identity, they may ask you to provide your password verbally. Once you give them the password, they can use it to access your account.

Approximately one in five financial institutions reported losing more than $5 million to fraud in the past year. To help protect customers, Fifth Third Bank offers identity theft protection through such services as its SmartShield^® Security dashboard, found in the Fifth Third Mobile App. The dashboard makes the account login process more secure and sends alerts if suspicious activity is detected. You can also lower your risk by keeping your personal information off social media, using security software on your devices and ensuring your account credentials remain private.

Common bank fraud tactics to watch for

Some bank fraud tactics are more common than others. Here are some red flags to watch for:

Phishing emails and text messages

Phishing—using an email or text message to impersonate a legitimate organization—is the leading method used to steal data. In fact, 90% of cyberattacks begin this way, according to cybersecurity company Huntress. When assessing an email or text message, be wary of grammar mistakes, misspellings and improper use of logos. A phishing email or text may also convey a sense of urgency or ask you to click on a link. Scammers may find it easier to target digital-first customers because they are used to receiving communications via text and email. If you receive a suspicious email, you can help Fifth Third keep your data safe by letting us know via the Report Phishing feature in the mobile app.

Phone scam and impersonation calls

A scammer might also call you pretending to be a bank representative. Some signs that a call isn’t legitimate include the caller asking for personal information such as account numbers or your Social Security number, or the caller asking you to verify information such as a password. Also be wary of someone asking you to act in an urgent manner. Fifth Third Bank will never ask for personal information over the phone unless you initiated the call to a verified Fifth Third number.

Fake banking websites and spoofed apps

A scammer might send you a link in a text or email directing you to a fake website designed to look like a legitimate bank website. While such sites may appear authentic at first glance, a closer look may reveal low-quality images, typos and grammatical mistakes. The domain name may also be misspelled, and instead of starting with “https,” which shows that a site is secure, the URL may begin with “http.”

A scammer may also try to deceive you by sending a link to a fake version of the Fifth Third Mobile App, which could install malware on your phone. To protect yourself, avoid clicking links sent via unsolicited email or text messages, and download the Fifth Third Mobile App directly from the official Fifth Third web site.

Account takeover attempts

Another way scammers commit bank fraud is through account takeover, a practice in which they gain access to a victim’s account and make unauthorized changes, such as updating the password or adding an authorized user to a credit card. There are several ways a fraudster could gain access to your account such as by guessing passwords, installing malware and using credential stuffing—a cyberattack in which stolen usernames and passwords are automatically entered into the login fields. Real-time monitoring such as that offered by the Fifth Third SmartShield^® Security dashboard can help you detect suspicious activity. You can also reduce risk by changing your passwords regularly and keeping your banking credentials private.

Card skimming and card-not-present fraud

Scammers also commit fraud with stolen credit and debit card numbers. Sometimes they attach skimming devices to card readers that covertly capture card information when you’re making a purchase. Scammers can also gain access to card numbers through data breaches and use them to buy things when a physical card is not required. If you notice unauthorized charges on your debit or credit cards, contact Fifth Third Bank immediately at 800-782-0279 or via the Fifth Third Mobile App.

How to protect yourself from bank fraud

Take steps now to help prevent fraud if you are ever targeted. Here are some helpful tips:

1. Never give out personal information to an incoming caller

A representative from your bank will never call you and ask for a one-time password (OTP) or your login credentials. A representative will only ask a customer to verify an OTP if that customer has initiated the call.

2. Verify before you respond

If someone claiming to be a bank representative calls you about possible fraud, ask for their name, hang up and call the customer service number on the back of your bank card. This is an easy way to confirm whether the caller is actually a bank employee.

3. Keep your contact information up to date

Double check to make sure all your personal information is accurate either through online banking or the Fifth Third Mobile App. Review any verification settings as well and consider opting into paperless billing.

4. Strengthen your digital security

Put safeguards in place to protect your digital banking activities. Make sure your phone apps, web browser and any other software are up to date. There will often be security patches released to update the software and help protect you. Change your password regularly and avoid taking out your credit and debit cards in public by storing payment information in a secure digital wallet.

5. Enroll in Fifth Third Identity Alert

It’s important to be notified as soon as possible if someone has stolen your identity. Sign up for daily monitoring of your credit, as well as for the fraudulent usage of your Social Security number and other personal information online.

What to do if you suspect fraud

If you suspect fraud or suspicious activity with your account, do the following:

• Contact your bank. You can call Fifth Third Bank at 1-800-972-3030 or log into your Fifth Third online or mobile banking account and use the secure messaging or “Report Fraud” option if available.
• Report fraud to authorities. Filing a police report will launch an investigation and create a paper trail that could be helpful if a fraudster continues to use your financial data.
• Minimize the damage. Acting quickly can save you money and the headache of dealing with identity theft. Pay attention to smart alerts and reach out to your bank immediately if you suspect your account has been compromised.

Despite our best efforts, fraud still happens. If fraud does occur to your account, contact customer service and Fifth Third Bank will work with you to recoup any monetary loss. But to save both time and money the better option is to stop theft before it actually occurs. Learn more about how to protect yourself by reading the Bank Fraud, Scams, and Identity Theft FAQs.

Three things to do:

• Explore the benefits of signing up for Fifth Third Identify Alert^®.
• Learn how to protect aging family members from financial fraud.
• Get cybersecurity tips for your family.