Ideal number of bank accounts: Is one bank account enough? Probably not. My pal, Clark Howard, recommends at least two bank accounts, but you may need more if you’re married or use payment apps. Subscribe to Clark’s free newsletter to receive more must-have money tips every day.
Bank fraud is rising – How to protect yourself
The scams don’t stop — and here’s another one you need to know about. Your phone rings. It’s a rep from your bank, and they’re warning your account has been compromised. You’re smart, so you immediately suspect it’s a scam.
Then, the guy on the other end reads off your Social Security number and account info. Only your bank could know that, right?
Some 300,000 people in the U.S. thought the same last year. People lost their life savings; one Virginia woman had a whopping $700,000 wired out of her Wells Fargo account, and another in Los Angeles lost $100,000 in minutes.
📈 Why banking scams are rising
Bank scams used to be a niche operation. Now, anyone can buy the tools to con you for a few bucks on the Dark Web. There are even guides to make a phone number look like it’s from your bank, including phony customer service reps to answer all your questions.
Pro scammers rely on social engineering, too. That’s the fancy name for mind games to gain your trust. They love jumping on video calls because seeing a face makes you more trusting. They’ll keep chatting with you so you miss the security alerts warning you to stop.
The big banks lost interest
Last year, the banks reimbursed scam victims at pitiful rates. JPMorgan Chase reimbursed 2% of transactions disputed as scams, while Wells Fargo reimbursed 4% of scam claims. Bank of America, meanwhile, reimbursed 24% of its scam dispute transactions.
Federal law requires banks to reimburse you only under certain circumstances, like if someone steals your phone and accesses your account. But if you’re the one to sign a wire form or agree to an online transfer and you find out it’s a scam, you’re screwed.
💰 Keep your money safe
- Slow down: If a caller claims to be from your bank or asks for your account details, hang up. Call the bank yourself. Do not Google your bank’s number; find it on their official website or the back of your card.
- Beware of transfer scams: Never send money via wire transfer, crypto or gift cards in response to unsolicited calls or emails. Your bank or the government will never ask you to transfer funds to a “safe” account.
- Don’t follow links: If you’re told to visit a website, download an app or click a link, it’s a phishing site or malware installation.
- Use a virtual phone number: I bet your real one has been leaked in a couple of data breaches this year. Use a virtual number tied to your finances scammers don’t know.
- Set up alerts: In your banking app, you can turn on alerts for transactions over a certain amount or made in a foreign country, as well as notifications about suspicious activity like attempted logins from a new browser. I have all this set up. Some banks let you set transaction limits on withdrawals or purchases, too.
🫡 This is serious stuff. I don’t want to be a Debbie Downer, but if I can save one person from losing their life savings, I’m doing my job. Share this important intel using the icons below with someone you know who needs this warning. You can make a difference.
10 things you should never say to an AI chatbot
This is a heartbreaking story out of Florida. Megan Garcia thought her 14-year-old son was spending all his time playing video games. She had no idea he was having abusive, in-depth and sexual conversations with a chatbot powered by the app Character AI.
I’ve warned you about this: SIM-swapping scams are brutal. Ask Justin Chan from Carlsbad, California. Someone took control of his phone number and then his bank account. They stole $38,000 he’d saved to help his mom. Bank of America denied his fraud claim. Safety step: Call your cell provider and request a PIN on your account right now.
57% of Gen Z
Want to be an influencer. Sounds like a dream, but the reality isn’t so pretty. Most influencers barely make enough to scrape by, and even the ones making bank work like crazy.
This crime shot up 400% – watch out
To keep you and your money safe, I make it a point to always let you know about the spreading scams, from crypto catfishing to AI deepfakes. I bet you’re going to be surprised by this news: The crime that shot up 400% last year is old-school check fraud.
🚨 Watch out for these numbers: Fraudsters are using local area codes to gain your trust and steal your personal info. The most popular ones include 720 (Colorado), 272 (Pennsylvania), 959 (Connecticut) and 346 (Texas). The three most identified numbers were (763) 274-3899, (217) 402-1312 and (202) 456-1111. Calls from these numbers are usually banking scams. If you get one, hang up and contact your bank directly.
Banks close, just like other businesses: Search the Federal Deposit Insurance Corporation site to see if money in your name was left in failed financial institutions. For funds left in credit unions, search the National Credit Union Administration site. It’s like the digital version of finding a $20 bill under the couch cushions!
A new credit card fee: Several credit card companies, including Citibank and Synchrony Bank, are charging a $1.99 monthly fee for paper statements. Printing and mailing costs financial institutions $600 million, so they want us to pay for it. Call your card company and ask them to email you the “Schumer box.” It’s an easy-to-read table of all their fees.
Android folks, watch out for this: FakeCall malware is targeting over 20 banks. It starts with an infected app that becomes the default calling app on your phone. The next time you call your bank, it redirects to the attacker’s number with a fake screen and everything. Remember, you should only download apps from the official Google Play Store.
Money move: Sign up for text and email alerts from your bank. Yes, it’s a bit annoying to approve purchases, but this has notified me a few times someone got their hands on my card. In your banking app, go into Settings and look for Alerts or Notifications. Smart move, for sure.
🔥 Anker power bank recall: You risk a fire if you’re using an Anker 334 MagGo Battery (PowerCore 10K), Anker Power Bank and Anker MagGo Power Bank with a model number of A1642, A1647 or A1652. These were all sold between Jan. 3, 2024, and Sept. 17, 2024. If you own one, stop using it immediately and fill out the recall form.
In Zelle hell: One tech pro lost $1,600 using Zelle. Eventually, Wells Fargo credited him for the fishy charge. He agrees with lawmakers who say Zelle and banks are quick to blame victims for using it “wrong.”
Wyoming’s No. 1: It’s the first state with its own U.S. dollar-backed stablecoin. The goal? Faster, cheaper transactions and more revenue for the state. Next year, public audits will show how many tokens are in circulation and the exact amount in the bank. Translation: There’s a real dollar in the bank for every crypto coin.
😲 Stick to legitimate banks: Thousands of folks who put money into the Juno savings app are screwed. The company that provided Juno’s digital transaction ledgers collapsed, and no one can access their funds. One guy lost $38,000. Keep your savings in an FDIC-backed bank and those account balances under $250,000.
Say no: If your bank asks you to set up your voice profile attached to your account, decline. You can bet hackers are trolling the internet to get clips of folks talking to make their own deepfake copies. A fingerprint or a solid password are safer login methods.
🎨 Give the kids (and yourself) some culture: Bank of America customers get free admission to museums nationwide for the first weekend of every month. Perfect for summer vacation!
Make bank: Vintage rugs in good condition are big sellers online. Pro tips: List the dimensions, call out imperfections like fraying and staining, and state upfront whether the rug comes from a smoke- or pet-free home. These are key phrases!