How do banks keep money safe from scammers and thieves?
By Deborah Jeanne Sergeant
Consumers reported losses of $330 million to text message scams in 2022, according to the Federal Trade Commission.
That’s more than twice the amount reported in 2021.
Scammers pose as bank officials and trick consumers into handing over their information. Usually, scammers frame the messages with terms that create a feeling of urgency — as if an untimely response will result in significant losses. That element of the scam can fool account holders into acting without thinking about what they’re doing. The victim “confirms” their account number with the scammer who can then bleed the account dry.
“NBT offers our customers — both individual and business — a variety of tools and services to help protect them from fraud and cyber-attacks. But, more so than any product or offering, we focus a lot of our time on educating customers on how they can protect themselves,” said Lori Teifke, territory manager with NBT Bank. “The best line of defense is education. Our website has a dedicated fraud information center for individuals and businesses. In addition, we offer business customers access to our information security team to help educate their employees.”
One important defense is knowing how your bank contacts you. If you have set up automatic notifications on your phone that signal you about ATM withdrawals or large transactions, the text may be legitimate. But typically, these texts are automated — not sent directly by a person seeking a reply.
What you do next is of the utmost importance. Instead of replying directly to the text message, call the bank at number you know is safe, not a number in the text message. The personnel at the bank can help you verify what’s going on if anything.
Account takeovers represent another type of banking cybercrime. In this type of crime, the identify thief uses a business’ or individual’s credentials to move funds without the accountholder’s knowledge.
“We in the financial intelligence unit receive alerts on a daily basis that make us aware of potential suspicious activity,” said Daniel Cardi, corporate security officer at Community Bank. “These alerts help us to identify unusual or suspicious transactions that may uncover fraud being perpetrated against our customers.”
Using a bank’s recommended safeguards helps prevent account takeovers. This can include using password-protected internet connection, not a public Wi-Fi connection, for example. It also helps to talk with bank personnel if you suspect illegal activity on your account.
“Whenever customers report online account takeover, we work with them to make sure their devices have been cleaned and are free of viruses so they can use their online banking again with ease and peace of mind,” Cardi said. “We have an Information Security team at Community Bank that works around the clock to make sure our systems are safe and secure.”
He added that all Community Bank employees are trained on safeguarding customers’ information, and the bank’s systems and staff are audited and tested to ensure they are effective and efficient.
“We use multi-factor authentication for certain transactions and communications to protect our customers,” Cardi said.
Remember that legitimate bank personnel would never call or email you to ask for account information.
