Common Bank and Payment Scams and How to Avoid Them

Many people, at some point, receive strange calls, messages, and emails claiming to be bank customer care representatives. Unfortunately, many people have fallen for these scams. That’s why people need to be careful.

Most payment methods listed on reputable review platforms are genuine, but we wonder how they always get our data. Is it possible our data was stolen or sold? Scammers get our data through various means. They can get your data through phishing links, where you have to fill in your data unknowingly. These fake websites resemble actual websites, and some people fall prey to this trick.

This article will explore tricks that scammers utilize. We will also discuss tips on how to avoid them.

Scam Tricks and how to avoid them

Here are some scams and how to avoid them:

  • Phishing Scams

Scammers use this method to get your details in a convenient space. However, another form of social engineering attack targeted at emails and creating links embedded with a pop-up “confirmation” happens most times.  They are targeted at emails to get your details faster.

How to avoid them

You can avoid it if you can be extra conscious of what links you click in your email inbox. Check and confirm if it is the actual email from the company website. Also, only click on links that are encrypted. Take note of “HTTPS,” not “HTTP,” to confirm the website is secured. Before putting your details on any website, ensure it’s from the actual website.

Automatic withdrawals and debits

This is a common scam that scammers use. They occur in two ways:

Debit message alert

This happens on a text message you would receive to continue verifying the debit alert. It comes trickily, and it is pretty challenging to escape falling into it.

How to avoid them

Cross-check through your bank app and mail to ensure there isn’t any debit made on the account. Take note of what the message (narration) is saying critically.

Automatic withdrawal

Scammers often use this method. They typically run ads. These ads pop up here and there. They go by  “Congratulations, you have won a prize.”. Clicking on those links redirects someone to fill in sensitive details.

How to avoid them

Never fill in your bank details, prompting you to receive the gifts.

  • Fake check cashing scam

Fake check cashing scam ploys play mostly on people’s generosity and kindness. A stranger might walk up to you asking for help if you could help cash the check. Multiple reasons might be dropped so that you could do the needful for them. 

In most cases, the stranger will be waiting outside to receive the funds. Before you realize it’s a bad check, the funds aren’t in your account, and you don’t have the cash with you.

How to avoid them

Don’t cash checks for other people, even for the reasons given.

  • Online lending scams

Sometimes, people might find themselves in a difficult situation. Under unforeseen circumstances, a loan might be the only option to save them at that moment. Many people don’t go to banks to take loans because they have issues providing the paperwork requested by the bank. Or are impatient to wait till the bank processes their loans.

They look for other options and consider an online loan platform. Out of desperation, they fill in some sensitive details without thinking twice. And then, more problem arises.

How to avoid them

Look out for ratings on the business and comments. Also, check if the business is licensed to operate and offer loan services.

  • Charity scams

Scammers play on people’s good intentions of making society a better place and improving livelihoods. For scammers to achieve their aim, they get a personalized local number and impersonate reputable charity organizations to ask for grants. They may claim to fund some projects in the community.

Also, they may request sensitive information during the phone call. They imply that crucial information is needed to gain access to your accounts. Once you release that information, the account is liable to be at risk.

How to avoid them

Sign up for an organization within your community that you can trust to make good use of your kind gestures. Confirm the details of any organization asking for grants

  • Government Imposter scam

Scammers impersonate government organizations to lure you to send in vital information. They might trick you into believing you have outstanding debts to clear. The scammers might suggest payment platforms to receive the money.

Also, you might receive a call from a lottery company in disguise asking you to send in relevant information to claim the prize.

How to avoid them

No government organization will ask for your details or call you. Hang up once you receive such a call and report it to the relevant authorities.

  • Overpayment scam

Overpayment scams are generally targeted at online vendors. A buyer will want to buy a product above the purchase price. They will send you proof of payment in a cheque or money order. 

Unfortunately, you would wire the money into your account and return the difference through transfer before you discovered it was a fraudulent payment. You have lost both money for the product and the difference, and you still owe the bank a fee for the cheque.

How to avoid them

Don’t cash a check from an unknown individual. Ask for advice from your bank on how to be safe. Don’t release the product until you confirm the status of the cheque.

Unsolicited check fraud

Many people have received emails that they think might be free money. Scammers are hoping you fall for it and sign into it. Those emails might look like a rebate cheque, overpayment, and refund. Still, there’s a fine print that binds you legally to a contract, either a loan or long-term commitments.

How to avoid them

Be careful of cheques in the form of refunds and overpayments you aren’t expecting.

Credit card and bank account scam

Credit card and bank account scams are commonly used and achieved mostly with calls rather than emails. You might receive a call informing you that an investigation of fraud is going on with your account. They might kindly request you drop the necessary details and proceed to their customer representative. Sounds professional, but definitely, it’s to achieve their dubious aim. 

How to avoid them

Never answer such calls. You can block those numbers. Go to the bank to confirm any information before providing any.


The probable scams listed here include Overpayment Scams, Check-Cashing Scams, Automatic Withdrawal Scams, Unsolicited Check Fraud, and Government Imposter Scams. Scams are not specific to the banking sector. They are common in many sectors of the larger world.

Inflation is continuously making new highs in many countries like the UK. Money is already losing value, and the last thing you need is more losses to the amount you have in the bank. The best strategy to prevent having your personal information or bank accounts compromised is to be proactive in regulating who has access to it.

How to avoid them


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