Avoid Scams That Pose as a Financial Institution

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Scams impersonating financial institutions have become increasingly prevalent in our digital age. Falling for one can cost you money and peace of mind. Stay informed and safeguard your financial well-being as we dive into the latest tactics of fraudsters that masquerade as legitimate financial institutions.

Financial Deception 101

Among the prevalent schemes that have emerged are those involving impersonators posing as bank managers, claiming suspicious activities on your account, and unexpected notifications of bank audits suggesting errors in your favor. It's best to be skeptical of unsolicited communications, such as loan approvals, especially if you haven't applied for one, and be wary of any attached upfront fees. Being informed about a bank merger and being urged to immediately update your banking details is another red flag. Approach with caution any emotional appeals requesting donations to alleged bank-supported charity events. As we navigate these deceptive waters, it's crucial to always verify the identity of anyone claiming affiliation with your bank.

Recognizing Red Flags

  • Suspicious Texts: Legitimate financial institutions may text you occasionally, but they will never request passwords or other sensitive information via text. If you're suspicious, don't click links, and don't call any numbers in the text.

  • Fake Fraud Alerts: Be cautious if you receive an unexpected message about fraudulent activity, especially if the person demands immediate action.

  • Urgent Deadlines: Cybercriminals often create a sense of urgency to make you act impulsively. While your bank might mark certain messages as "urgent," they rarely set strict deadlines.

  • Unofficial App Updates: Always download or update banking apps from official app stores. Banks will never send you a direct link for an app download.

  • Shortened URLs: These can be tools for cybercriminals to hide the true destination of a link. Avoid clicking on them.

  • Courier for Card Collection: No financial institution will send a courier to collect a faulty card. If there's an issue with your card, you'll be instructed to destroy it.

  • Fake Call-backs: Some scammers may simulate hanging up and ask you to call your bank directly. Ensure you dial the official number independently.

  • Unexpected Email Addresses: Banks won't contact you on a new email without prior notice. Consider creating a separate email solely for banking for added security.

  • Unsecured Websites: Genuine online banking pages display security symbols, like a padlock. Always ensure your connection is secure.

  • Generic Salutations: Authentic communications address you by name. Be wary of emails starting with “Dear customer” or just your email address.

  • Blank Address Fields: Genuine personal messages from your bank should clearly display your email address in the header.

  • Excessive Information Requests: Banks will never ask for excessive personal information via email. If in doubt, contact them directly.

Protection Against Scams

Always confirm the identity of anyone claiming to represent your bank. It's prudent to refrain from sharing sensitive details, whether over email or phone, particularly if you did not initiate the contact. When reaching out to your financial institution, use the contact details you have on record or those from official sources, rather than information provided in unsolicited communications. Furthermore, arm yourself with knowledge. Regularly updating yourself on prevalent scams serves as a robust line of defense. Share this knowledge with your loved ones to enhance collective awareness.


Please contact Logix at (800) 328-5328 or visit www.lfcu.com if you have any questions about this topic or would like to consider opening an account. 

Logix Smarter Banking is a registered trademark of Logix Federal Credit Union.

Meet the blogger

Sherlogix Holmes

Sherlogix Holmes

All things fraud news and fraud prevention tips presented by Logix Fraud Risk Management. We know the importance of staying apprised of fraud trends and want to share our knowledge so you, too, can combat fraud and spread the word to family and friends.