How to protect yourself from bank impersonation scams

In today’s digital age, convenience often goes hand in hand with technology. Unfortunately, this technology also provides an avenue for bad actors to exploit unsuspecting individuals in increasingly sophisticated ways. One tactic involves criminals impersonating banks, claiming urgent issues with your account, or posing as financial advisors seeking your personal information. Once they have your information, they can commit identity theft, open fraudulent accounts, apply for loans, and engage in other illicit activities.

Let’s explore three of the main methods employed by these fraudsters: phone scams, text-based deception, and investment fraud.

Recognizing phone scams

Fraudsters often use phone calls to impersonate banks, creating a sense of urgency to trick individuals into divulging sensitive information such as their bank card information or account passwords. They may also use spoofed numbers, where the incoming call appears to be from a legitimate source, adding a layer of believability to these scams. The number you see on caller ID may match an existing bank phone number, and the caller may claim there’s a security breach, an unauthorized transaction, or another urgent matter, prompting you to disclose personal details.

Important: BMO will never contact you via unsolicited email, text, mail, or phone call asking for sensitive information.  If you receive a call, email, or text from someone claiming to be from BMO, do not share passcodes, PINs or other info. It’s ok to confirm if a recent transaction is legitimate with Yes or No. If you are suspicious, hang up and call us using the number on the back of your card.

Protecting yourself:

• Say no to unsolicited calls. If you get a call, voicemail, email, or text from someone claiming to be from your bank and you think it’s suspicious, hang up and contact the bank immediately using the information on the back of your card.
• Guard personal information. Do not give credit card information, banking account details, passwords, PINs, or one-time passcodes to callers – regardless of how convincing the request may sound. Government agencies, banks and other legitimate organizations will never request sensitive information like PINs or passwords over the phone. Only provide one-time verification codes if you initiated the call.
• Slow down and avoid any ‘urgent’ requests. Be mindful of responding too quickly with personal or financial information. Scammers are adept at creating a strong sense of urgency to compel you to act immediately without verifying the request.
• Stay informed. Keep abreast of the latest scams by regularly checking  BMO’s Security Alerts for new updates.

Identifying text messaging scams

Fraudsters may send text messages claiming to be from your bank, often containing urgent messages about account issues, actionable alerts, or enticing offers. These texts may include links that lead to fake websites designed to capture your login credentials. The fraudsters are then able to use this information collected to access your accounts.

Protecting yourself:

• Avoid selecting links in unsolicited text messages. Instead, independently verify the sender's identity by contacting your bank through trusted channels.
• Download and use official banking apps from reputable app stores to ensure the security of your transactions.
• Monitor Your Accounts. Sign up for alerts to get notified when there is any activity on your accounts. Regularly check your bank statements and account activities to detect any unauthorized transactions promptly.
• Report Suspicious Messages. If you receive a suspicious text, report it to your bank immediately. They can investigate and issue alerts to protect other customers.

Avoiding investment Scams

In investment scams, fraudsters pose as financial advisors from reputable institutions, offering lucrative investment opportunities. They may know information about you – obtained from social media or the dark web – and promise high returns with low risk, encouraging you to transfer funds or share personal financial information. The fraudsters, hoping that you fall for the lucrative opportunity, attempt to scam you out of your funds.

Note that no employee or authorized agent of BMO or BMO Private Wealth, or any related entity, is in any way associated with the investment opportunities or products offered by these fraudsters.

Protecting yourself:

• Be skeptical. If an investment opportunity sounds too good to be true, it probably is.
• Research before investing. Thoroughly research any investment opportunity and the individuals or companies involved. Check for official credentials.
• Guard personal information. Do not give credit card information, banking account details, passwords, PINs, or one-time passcodes – regardless of how convincing the request may sound.
• Be wary of unusual requests. Look out for requests to send funds through an intermediary or an account different from the institution the “advisor” claims to work at.
• If you are contacted by fraudsters posing as financial advisors and offering you lucrative investment opportunities, you are encouraged to report it to:
  • your financial institution
  • the Canadian Anti-Fraud Centre/Federal Trade Commission
  • local police authorities

Protecting yourself from bank impersonation scams requires a combination of skepticism, awareness, and proactive security measures. Safeguard your financial well-being by staying informed and adopting the tips mentioned here.