Hackers and other online criminals relentlessly deploy phishing scams in hopes of tricking hard-working people into giving them personal identity information, access to financial accounts, or making other missteps. At Members Plus Credit Union, we are keenly aware of the risk hackers pose. We hope this information about common banking phishing scams helps you identify them and avoid getting scammed.
Understanding Phishing in Banking
Financial institutions rank among the highest-profile targets by hackers year after year. That’s largely because cybercriminals troll the internet looking for ways to drain bank accounts, leverage credit cards, or steal personal information that can be sold on the Dark Web.
What Is Phishing?
If the word “phishing” sounds identical to “fishing,” there’s a good reason. Both involve angling to get something valuable — one being a meal and the other involving monetary gain. In many cases, a hacker may send tens of thousands of fraudulent communications out in one click. The message’s gist may prompt the recipient to send money or provide a credit card or checking account number to resolve a financial emergency. At the onset of the pandemic, some cybercriminals stooped so low that they contacted families claiming a loved one was in the hospital. These contemptible criminals told a panicked public that immediate payment was needed to start treatment. Today, con artists use a wide variety of schemes to defraud good people.
Why Banks Are Prime Targets
Banks are primary targets for hackers because they store a treasure trove of valuable data. Checking and savings accounts are just the tip of the spear when it comes to cybersecurity. Hackers are also after confidential information such as Social Security numbers, healthcare information, personnel records, and login credentials to a financial institution’s network. Online criminals routinely send out bulk or targeted phishing scams, hoping to trip up unsuspecting employees at financial institutions.
Common Banking Phishing scams
An estimated 3.4 billion phishing emails are transmitted on any given day. If that number doesn’t startle you at first blush, consider this fact. Over a three-day period, more phishing emails are sent out than there are people on the planet. The reason online thieves relentlessly distribute phishing emails is that they work. More than 90 percent of cyberattacks reportedly start with a phishing email or alternative electronic communication. These are the preferred types of phishing scams hackers use on a regular basis.
- Fake Emails from Your Bank
- Phony Text Messages (Smishing)
- Spoofed Bank Websites
- Voice Call Scams (Vishing)
- Social Media Impersonations
It’s not unusual for hacking gangs to attempt a multi-faceted phishing attack. One miscreant may be in charge of sending out emails, while another follows up with a call or text message. The concept behind multiple contact points is that it engenders confidence the scam is legitimate.
Red Flags to Look For
Garden variety hackers rely on an established narrative to fool unsuspecting recipients. While their methods continue to get people to click on a malicious link, download a malware-laced file, and give up critical information, many can be easily identified. These are red flags to look for when receiving a message that seems even a tad out of step.
- Urgent or Threatening Language
- Requests for Personal or Financial Information
- Suspicious Email Addresses or Phone Numbers
- Unsecured or Mismatched URLs
Low-level hackers — particularly those in another country — are prone to spelling and grammatical errors. If you notice these or other elements that make you feel uncomfortable, delete the message immediately. Anytime you feel unsure, contact the person through another means to ensure they are a supervisor or a real person you know and trust.
How to Protect Yourself
Phishing scams typically have a success rate of about 17 percent. When criminal gangs or more sophisticated hackers add a second component, such as a voice call, they become three times more likely to trick recipients into making a mistake or divulging confidential information. When a hacker hoodwinks someone with a phishing scheme, the consequences can be financially and personally dire. That’s why it’s crucial to learn how to protect yourself from phishing scams.
Steps to Take If You’re Targeted
Nearly 300,000 people fell victim to phishing scams in 2023, and almost 1 million have fallen victim over a three-year period. The vast majority of these nefarious attacks were launched as standardized electronic messages. Most are not personalized, making them easier to spot.
This is not to say that intelligent, skilled cybercriminals will not target you personally. A method known as “spear phishing” gathers information about a high-profile target from social media accounts and professional networking profiles to craft specialized communications. When digital scammers sprinkle in places you eat, shop, educational history or the names of family and friends, phishing scams appear genuine. If you have even the slightest reservation, consider the following.
- Do Not Respond or Click Links
- Report the Scam to Authorities
At Members Plus Credit Union, we take proactive measures to protect our members’ critical data and accounts. We hope this information about phishing scams and ways to protect yourself proves useful. If you are considering a low-interest loan, opening an account, or have other needs, contact us today. Let’s get the process started.
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