How to Identify and Prevent Bank Scams

Every minute, someone is potentially falling victim to a bank scam. The scenario is chilling: an individual, perhaps a loved one, stands at a bank counter, ready to wire money, possibly coached by a scammer who sounds calm and authoritative. According to the FBI’s 2025 Internet Crime Report, internet crime losses exceeded $20 billion, and the FTC noted that impostor scams topped the list, totaling $3.5 billion in losses. Understanding how these scams operate is crucial.

How Impostor Bank Scams Work

Scammers often initiate contact with a phone call, employing fear and urgency to pressure their victims. They might impersonate law enforcement or other trusted figures. This tactic causes victims to freeze, making them more compliant. By the time someone enters a bank branch, they might be adhering to a prepared script, having been coached on what to say to justify large withdrawals.

Darius Kingsley, responsible for fraud prevention at JPMorgan Chase, shared insights on the tactics scammers use during a CyberGuy Report podcast. According to Kingsley, scammers aim to create panic, often playing roles of authority figures like police officers to gain trust and compliance from their targets.

The Role of Bank Tellers

Bank tellers are trained to detect and counter fraudulent activity. When you conduct a large transaction and they ask questions, remember it is a protective measure, not an invasion of privacy. Tell-tale signs of a scam include a customer appearing nervous or inconsistencies in their story. Engaging in conversation during such moments can be pivotal in preventing fraud.

Coaching Tactics by Scammers

Scammers often work from organized centers, sometimes based overseas. In these centers, they use detailed scripts, making them seem genuine. Some operations involve trafficked workers, forced into scamming. Once money is sent, it is moved swiftly across borders, complicating recovery efforts.

Spotting Bank Scam Red Flags

The best defense against scams is vigilance before money moves. Observe changes such as privacy around financial matters or sudden defensiveness about transactions. Watch for signs like someone staying on calls with unknown persons while transacting, or using crypto ATMs under phone guidance.

Actions to Take After a Scam

If scammed, time is critical. Contact your bank immediately to potentially freeze or trace funds. Following up with a police report and notifying the FBI via the Internet Crime Complaint Center at IC3.gov is recommended.

Preventive Measures Against Scams

• Enable Bank Alerts: Ensure fraud alerts on your account for monitoring large transactions.
• Use Two-factor Authentication: Protect your accounts with two-factor verification to prevent unauthorized access.
• Add a Trusted Contact: Designate a contact for your accounts to provide an extra safety layer during suspicious activity.
• Establish a Family Code Word: Use a code word for verifying urgent requests to prevent quick scam responses.
• Limit Visible Personal Information: Use data removal services to reduce scammers’ access to your personal data.
• Slow Down Urgent Requests: Implement a rule to hold wire transfers or large withdrawals until thoroughly evaluated.
• Address Secrecy: If secrecy surrounds money requests, investigate further as legitimate entities do not demand such privacy.
• Report Fraud: Document and report fraud to appropriate authorities including your bank and the FTC.

Ultimately, avoiding scams requires awareness and open communication in your family. Discuss tactics and set safeguards before a call comes, preparing everyone to recognize and resist scams effectively.

For a detailed conversation on scam prevention with Darius Kingsley, listen to the full CyberGuy Report podcast available at CyberguyPodcast.com. Protect your family by understanding potential threats and agreeing that money should not move under pressure.

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