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How to help protect yourself from bank impersonation scams

This informative article discusses common bank impersonation scams, what to look out for and what to do if you suspect you’ve been scammed

Updated
4 min. read

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 some of the main methods employed by these fraudsters.

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.

Example: You receive a call from someone who identifies themselves as a fraud investigator with your bank. The caller ID appears to match the phone number on the back of your bank card. The caller says there has been suspicious activity in your account and that before they can resolve the issue, they need you to provide some personal or banking information to confirm your identity. They may also tell you that your card has been compromised and that a courier will come to your home to collect it. In reality, the caller ID has been spoofed, and the fraudster is trying to collect the information or card they need to access your accounts and funds.Important: BMO will never contact you via unsolicited phone call, email, text, or social media message to ask for sensitive information, passwords, PINs, or verification codes (one-time passcodes). If you get a call, voicemail, email, text or social media message from someone claiming to be from BMO and you think it’s suspicious, do not share any information and contact us immediately using the information on the back of your card.

How to help protect yourself:

  • Say no to unsolicited contact. Do not engage with unsolicited calls, emails, texts or social media messages. If you’re unfamiliar with the caller or sender, do not reply, respond or communicate at all.
  • Never hand over your card. BMO will never send a courier to pick up your bank card or PIN. If someone asks you to hand over your card, end the interaction and contact BMO using the number on the back of your card.
  • Don’t trust caller ID. Fraudsters can use caller ID spoofing so a phone call can appear to come from your bank.
  • 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.
“Protecting yourself from bank impersonation scams requires a combination of skepticism, awareness, and proactive security measures. ”

Identifying email and text messaging scams

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

How to help protect yourself:

  • Avoid selecting links in unsolicited 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 email or text, report it to your bank immediately. They can investigate and issue alerts to protect other customers.
  • Review emails and URLs carefully. Emails and websites can look like they are from trusted companies, but there may be small differences like one extra letter, a period, or a .net instead of .com.

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.

Example: You receive a message from someone claiming to be a financial advisor affiliated with your bank. They promote an investment opportunity that promises high returns with little or no risk. The person may use familiar branding, professional-looking documents, and even the name of a real company or employee to seem legitimate. They may ask you to move the conversation to a private channel, download software, complete forms, or transfer money to an account that does not belong to the institution they claim to represent. After you send the funds, the "advisor" stops responding, and you realize the investment opportunity was fake.

How to help protect yourself:

  • Be skeptical. If an investment opportunity sounds too good to be true, it probably is. Be especially skeptical of investment opportunities offered through social media.
  • Research before investing. Thoroughly research any investment opportunity and the individuals or companies involved. Check for official credentials. Be wary of any unsolicited investment advice, particularly from someone you’ve only interacted with online.
  • 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.
  • Beware of guaranteed returns. Be highly skeptical of advertisements containing language guaranteeing high returns on investments or offering free money.
  • If you are required to download software, it should be a red flag. Watch for requests that require you to download specific software to supposedly assist with transferring funds or purchasing crypto assets.
  • If you are contacted by fraudsters posing as financial advisors and offering you lucrative investment opportunities, you are encouraged to report it to:

Bank impersonation through social media and other channels 

Fraudsters are also posing as bank employees and executives, reaching out to targets through social media platforms such as WhatsApp or Linkedin, as well as a variety of other channels. This can include sending targets unsolicited meeting or appointment requests, or invitations to join private investment groups. 

Fraudsters may use familiar bank branding and logos or even the names and photos of real employees or leaders to make themselves look more legitimate. Their goal is to convince targets to give up money or information that can allow fraudsters to access their accounts. Example: You receive a connection request or direct message on social media from someone who appears to be a bank employee, executive, or financial professional. Their profile includes a familiar logo, professional photo, and details that make the account look legitimate. After a brief exchange, they invite you to join a private investment group or move the conversation to another channel, such as WhatsApp or text message. They may share videos, voice messages, or screenshots that appear convincing, then pressure you to send money, provide personal information, or act quickly before an opportunity disappears. In reality, the profile may be fake, the images or voice messages may be stolen or AI-generated, and the fraudster is trying to gain your trust before stealing your money or information.

How to help protect yourself:

  • Watch for deepfakes. Scams involving AI-generated fake videos, pictures and voice (also known as deepfakes) are on the rise. If you connect with a social media contact, watch out for signs of abnormal speech patterns, longer-than-usual pauses between words and sentences, or the person’s voice sounding flat and lifeless.
  • Be cautious with unexpected job opportunities. Fraudsters may impersonate recruiters, hiring managers, or employees from banks and other well-known companies to target job seekers and professionals. Be cautious if you receive an unexpected job offer or recruiting message, especially if it comes from a personal email address, unfamiliar domain, text message, social media account, or messaging app. Verify job opportunities through the company’s official careers website before sharing personal information or continuing the conversation.
  • Be wary of requests to move to private channels. Beware of people who make a connection on a social media platform and then attempt to move communication to a private channel such as WhatsApp or text message. Legitimate financial professionals will not approach potential clients this way.
  • Never send money to people you meet online, even if they send you money first, including gift cards, money wires, or other forms of currency.

The bottom line Helping to protect 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.

Learn how to protect yourself

For more information and updates on potential scams, refer to the BMO Security Alerts page.

BMO Security Alerts