Signs That It May Be a Scam

According to the Federal Trade Commission, Americans lost more than $8.67 billion in the first three quarters of 2024 due to fraud with more than 1.8 million fraud cases filed.  Iowa had $37 million in fraud losses during this time period with 3,557 imposter scams and 2,938 identity theft cases.

To avoid being part of these statistics, please remember to keep an eye out for the following red flags:

• Gift cards. No legitimate business or person will ask you to pay for fees, services, or items in gift cards.  Don’t send photos of gift cards because scammers can use that information to drain the balances on those accounts.
• Cryptocurrency.  Be wary of a business or person that wants you to pay for a fee, service, or item in cryptocurrency.  Once sent, cryptocurrency transactions cannot be reversed by the bank and any money lost cannot be recovered.
• Urgency.  The scammer wants the transaction completed immediately.  They don’t want you to take the time to do research or think too carefully before sending your money or giving them information.
• Secrecy.  The scammer asks you not to tell anyone about your transaction and may use tactics like making you feel like you will get the scammer in trouble for making a mistake or may ask you to let them listen in on conversations secretly with the bank or others.
• Surprises. Scammers may say you’ve won the lottery, a sweepstakes you didn’t enter, or a class-action lawsuit in which you didn’t participate.  They may also ask you to pay upfront taxes or fees to collect your prize.
• Rewards. Scammers may send you a check to deposit into your account.  They will claim that if you send part of it back to them, you can keep the rest, but the original check they sent will come back as fraudulent.
• Links. Be wary of clicking on links from businesses asking you to verify data you’ve already given the legitimate company and be especially careful if the contact is unsolicited, meaning you never contacted them initially.

If you see any of these red flags, resist the pressure to act immediately, ask friends or family members for their thoughts on the situation, use known numbers or websites to confirm information, or contact your financial institution for their opinion.

 The scams below use some of these tactics to scam you out of money or information.

• Incomplete address verifications. You may get a text message from USPS, FedEx, or other delivery companies that state that your package cannot be delivered due to incomplete address information.  Often, it asks you to confirm your address by clicking a link.  Clicking the link may install malware on your device or request information from you that the scammer can use to scam you.   If you receive one of these messages or emails, check the website from which you ordered for delivery information or contact the delivery company via a known and/or verified phone number.
• Fraudulent websites posing as known businesses on social media. When you click on the post to purchase or enroll, it’s a different company that charges your card.  Often it turns into a monthly subscription that you agreed to in the fine print.  Instead of clicking on the link in social media, go directly to the known website or location of that business to place your orders.
• Pop-ups on computer screen.  The pop-ups may instruct you to call a number in order to either refund a charge that is supposedly on your account or repair your device. The scammer then asks to remote into your computer and steals information off it, such as your bank account login, or install malware.
• Family member scams. The scammer poses as a member of your family that is dealing with an emergency and needs help with getting bailed out jail, paying for immediate surgery in the hospital, settling debt with the dangerous people, or something else that needs immediate cash.  The scammer wants you to send money right away and to not involve any other family members.  The scammers might even pretend to be an “authority figure,” like a fake lawyer, police officer, or doctor working with your family member.  Others may use AI (artificial intelligence) and voice-cloning programs to sound like your family member.
• Gift card scams. Gift cards are being used in a wide variety of ways to scam you out of your money.
  • Credit building. Fraudster sets up a loan for you to payback with gift cards to build your credit.  A fraudulent check with the loan proceeds is sent to you.  You buy gift cards to start paying back the loan with the first payment due before you discover the check is fraudulent.
  • Kick-starters. Scammers have you purchase gift cards to get a financial situation “kick-started” such as payment for shipment of a vehicle won, collecting taxes for a monetary prize or inheritance, or to cover the expense of the application process for a loan, job, etc.
  • Financial favors. Fraudster convinces you to either give your online banking credentials to do a mobile deposit or sends you a picture of a check for you to mobile deposit as a favor.  The fraudster then tells you to withdraw cash or buy gift cards and send these to them.  Often you are told you can keep a portion for helping them out.  When the check is returned as fraudulent, it is charged back to your account, and you ending up owing the bank that money.
  • Correction of an overpayment or error.  Scammer convinces you to let him log into your Online Banking to refund you for a bill you overpaid and transfers money from your savings to your checking without you knowing it.  Later, when you log in and see the transaction in your checking account, the scammer tells you that an overpayment was accidentally made in your account.  To correct it, you need to buy gift cards and send the numbers to the scammer before his boss finds out he made an error.

By being aware of red flags and the types of scams fraudsters are trying to pull, you can protect yourself from being a victim of fraud.  Remember, if it sounds too good to be true, it probably is.  When in doubt, play it safe and don’t give scammers your money or personal information.

Debit Card/ATM Safety Tips

Preventing Card Fraud

• Always memorize your PIN. Don’t write it on your card or anything you carry near your card.
• Keep your PIN confidential.
• Don’t let anyone else use your card.
• Be cautious when giving your debit card number, bank account number or PIN over the phone, especially cellular phones.
• Report a suspected card compromise immediately, even if you still have the card in your possession.
• Report lost or stolen cards immediately. You may be liable for activity on your card if you do not report it as lost or stolen.
• NEVER respond to a link or phone number in an e-mail or text message requesting personal information. Phishers often use this method to scam you into divulging personal data.
• Only open email messages from a known or trusted source. Look for phishing red flags, such as poor grammar, misspelled words, vague instructions and generic greetings.
• Report suspicious phone calls, messages or websites to Premier Bank immediately.

Approaching the ATM

• Avoid facilities in dark or remote locations.
• If you see people lurking around the ATM or any other situation that makes you uncomfortable, find a different machine.
• Take another person with you whenever possible.
• Have your card ready.
• Keep your doors locked and all passenger windows closed at a drive-up facility.

Using the ATM

• Be aware of your surroundings.
• Block the view of others by cupping your hand over the keypad as you enter your PIN and by standing between the terminal and any person who is waiting.
• Remove your cash, receipt and card from the ATM after every transaction.

Caring for Your Card

• Don’t expose the magnetic strip to other magnetic objects; this can deactivate your card.
• Record and file the name and phone numbers of your card’s issuer for reporting loss or theft.

Safe Personal Banking Practices

Keep your computer as secure as possible

• Be sure your computer is current with all operating system and application software updates.
• Install anti-virus and desktop firewall software on all computer systems. Ensure virus protection and security software are updated regularly. Anti-virus is only secure if it has the most recent signatures and updates.
• Watch for signs of spyware. This includes frequent pop-ups, unexpected icons on your desktop, random error messages and sluggish computer performance. Run a full system anti-virus and anti-spyware scan to safely remove any spyware.
• Ensure computers are patched regularly with security patches, especially operating system and key applications.
• Create a login password for your computer.
• Always logoff when you are finished working and close your browser session.
• Never access bank, brokerage or other financial services information at Internet cafes, airports, hotels, public libraries or any other networks beyond your control. Unauthorized software may have been installed to trap account number and login information leaving the customer vulnerable to possible fraud.
• Subscribe to the FDIC Consumer News. This provides practical guidance on how to become a smarter, safer user of financial services. You can also read prior issues. To subscribe or view prior newsletters go to www.FDIC.gov; in the search engine type “FDIC Consumer News.”
• Be wary of allowing someone to remote into your computer, especially if that person contacted you.  Giving them access to your computer gives them access to all information stored on that device.

Keep your connection to the Internet as secure as possible

• Install a personal firewall to minimize your risks by blocking malicious traffic. New computers may be shipped with it on by default so please make sure it is on and receiving regular updates.
• Look for the https:// in the URL bar, make sure the bar is green and check for the lock icon when entering sensitive information onto a website. This indicates your communications are encrypted.
• Keep the browser you use to connect to the Internet updated.
• If you use a wireless router to connect to the internet, remember to change the default network name and password that came with the router.
• Standard email is not a secure means of sending sensitive data such as account numbers, social security numbers, etc. Please provide these by mail, fax or telephone rather than by email.

Keep your password as secure as possible

The most effective passwords are at least 10 characters and use a mix of uppercase and lowercase letters, numeric or special characters. Do not use birth dates, names or other readily accessible information.

• Each online account should have its own strong password so that if one is compromised, the attacker does not have automatic access to your other accounts.
• Do not use the same passwords for personal computers that you use for business computers.
• Do not write your password or PIN down and do not share these with anyone.
• Never check the “Remember Me” or “Remember Password” box if prompted.
• Change the password a few times each year, perhaps even more than the required amount.