Online scams are everywhere these days, as a close family associate was tricked into transferring the balance of their checking account to a scammer a few months ago, the likelihood of getting your money back is slim these days, but there are a handful of things you can do to in the whole online banking fraud stuff going on...
Banks Absolve Themselves of Responsibility
Despite consumer protection laws that "used to" force banks to refund consumers if they were scammed out of their money, with the brutal year banks have had plus millions of dollars being scammed out of consumers accounts every month, banks have taken a hard line and it's no longer a foregone conclusion your bank will be of support to you if you get scammed (you can try to fight your bank to take care of you, but the better thing to do is keep on your toes and prevent from being scammed in the first place!)
The Text and Phone Call
The scammers are sending text messages spoofing their phone number as if they are your bank (the CallerID and text ID says "Bank of xxxx" and can actually be the main phone# for Bank of America, Wells Fargo, Citibank, etc). So it looks like it is actually coming from your bank, but it is easy for scammers to fake the CallerID/TextID sending info. The caller/texter usually says "did you just make this $xxx transaction, yes/no?"
They're goading the recipient to "engage" by responding no. Which then proceeds a phone call from someone who says they are from your bank, ready to help you prevent this unauthorized transfer of funds from going through. They walk you through a series of online banking steps to "get your money back" which in effect isn't getting money back, but instead is tricking you into actually sending the scammer your money.
They walk you through these steps quickly (to "take immediate action on the issue"), and when they are done, they've successfully had you transfer the entire balance of your bank account to them via Zelle, or Venmo, or the like.
This Scam Has been VERY Successful...
In this particular case I was helping a friend with, after confirming that the person was indeed scammed, I had them file a fraud claim with their bank. The person said there was no way to file the claim online, that their (big bank) required them to actually call and speak to someone to file the claim. They said it took them over 2-hours of waiting on hold before getting to someone. That the bank representative said their bank is getting thousands of calls a day of customers being scammed in the same way.
This has been going on for more than a couple years now, and the scammers are easily siphoning $$ from individuals all within a 5-10 minute phone call!
How Not to get Scammed
Have your guard up so you do NOT get scammed! Don't answer the phone, don't reply to a text message, don't click on anything to ENGAGE with the sender until you know who you are REALLY talking with.
Don't be lazy, don't be fooled into thinking the incoming text, even with the proper CallerID / Email address from your bank is real. Yeah, you might be wasting your time calling or checking, but if you get scammed, you'll spend more than an hour trying to get your money back.
OH, and more importantly, IF it is a real call or text or email from your bank (or credit card company) and they REALLY need to talk to you immediately, you are NOT under any legal obligation to "respond immediately". Real bank or credit card thefts ARE covered by FDIC and Consumer Fraud Protections. So don't feel you HAVE to respond immediately to any call, text, or message.
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The problems (where the banks WON'T return your money) is when YOU get involved and get talked or walked through a series of steps to do something. It is YOU that is transferring your money out of your account, which is why the banks are now refusing to refund your money. So don't rush to do something... Check it out first!
What to Do If You've been Hacked or Scammed
If your account is hacked or you get scammed, here's what I learned in helping this person through their challenge:
Here's terminology about your claim:
How About the Consumer Financial Protection Bureau 2021 Ruling?
In a 2021 ruling, the Consumer Financial Protection Bureau (CFPB) that oversees financial policies and regulations clarified their position that the Electronic Fund Transfer Act of 1978, known as Regulation E ("Reg E") that "if a third party fraudulently induces a consumer into sharing account access information," that consumer should receive the same protections as if the money were acquired from a stolen debit card or other banking access device."
While Reg E was leveraged a couple years ago and consumers did get their money back, Reg E wasn't a law or banking requirement. It was an "opinion" by the CFPB that the banks played along with 2-3 years ago and gave consumers their money back, but in the past year+, the banks have taken a strong stance against the ruling.
You could try filing a Reg E complaint against your bank, the process is as follows:
It's worth a shot to try to get your money back, but as noted, the losses are in the billions these days, and the banks have posted warnings on their Websites, apps, sent their customers letters, etc warning you to "be aware". It's their position that they've now told you many times, so if you get tricked into giving up your money, that's your problem, not theirs.
Wrap-up
An interesting situation that has been out there for a long while, but is still catching a LOT of people by surprise. It's been a big target to elderly, to kids going off to college, to those who are a bit naive to the ways of the nasty bad actors. The scammers have gotten good at spoofing their CallerID and email addresses, preying on trusting young and elderly individuals. Be on your guard, when it comes to your money, be very suspicious!
