What Are Some Common Banking Scams?


Quick Answer

Common banking scams include charity fraud, check overpayment fraud, work-at-home job scams, award scams and scams that involve cashing a check for a stranger, according to the U.S. News & World Report. These scams target money in the victim's bank account and can be more damaging than other financial scams, including credit card fraud.

Continue Reading
Related Videos

Full Answer

Perpetrators of charity fraud ask for donations to military families or local police departments to obtain the debit card or bank account information of their victims. The scammers use this information to access the checking accounts of their victims, reports the U.S. News & World Report. In the check overpayment fraud, a fraudulent buyer makes an overpayment with a phony check and asks the recipient to wire the difference back to him. The wired amount is usually irreversible.

In another variation, a scammer stops a victim outside his bank and asks him to cash a check for him since he does not hold an account with the bank. Although the victim thinks he has pulled money from the uncleared check, he has actually pulled money from his account, explains the U.S. News & World Report. In award scams, scammers tell victims they have won lotteries or sweepstakes, send them large checks, and ask them to wire a portion of the winnings to settle administrative costs or government taxes.

Learn more about Crime

Related Questions