Banks Calling You: When to Trust and When to Doubt

It is natural to feel uneasy when receiving a call from an unknown number, especially from what seems to be a bank. This article aims to provide clarity on whether these calls are safe or potential scams, and how you can protect yourself from fraudulent activities.

Understanding Why Banks Call

Banks reach out to their customers for various reasons, both legitimate and, unfortunately, fraudulent. It is important to understand the reasons behind these calls to help identify whether the call is legitimate.

Legitimate Reasons for Banks to Contact You:

Confirming Transactions or Account Activity: Banks may call to ensure that you are the rightful owner of the account and to verify recent transactions. Notifying Account Changes or Updates: If there are any changes to your account, such as a new card being issued, banks will ensure you are aware before you receive it. Offering New Services or Products: Banks may inform you about new financial products that could benefit you. Resolving Issues or Errors: If any technical issues or errors arise in your account, a representative from the bank will reach out to resolve them.

The Red Flags: When to Doubt the Call

However, if the bank representative asks you for personal information, directs you to click on a link, or asks you to perform actions on the phone, it is necessary to be cautious.

Signs of a Potential Scam:

Asking for Personal Information: Respecting the cardinal rule of not giving out your personal information unless you are confident and have verified the caller. Directing You to Click on a Link: Banks should not ask you to click on links to perform financial transactions. Asking You to Perform Actions on the Phone: Banks typically prefer you to call them back or visit their website rather than perform actions on the phone.

How to Verify the Legitimacy of the Call

There are several steps you can take to ensure the call is legitimate. Here's how to do it:

Do Not Answer Unknown Numbers: Before you answer, it is prudent to check if the caller ID is genuine. Retrieve Contact Information: Look up the official contact information for your bank. You can find this on their website or through a trusted directory. Verify the Information: Call the number you found using a separate device and ask for the name and location of the caller. Do not use the phone number provided by the caller. Report the Scam: If the call was indeed fraudulent, report it to your bank immediately. They can provide guidance and ensure your account is secure.

True Stories

Here are a couple of stories to illustrate both legitimate and fraudulent bank calls:

Legitimate Call: One of my banks called me recently to offer a way to roll over a Certificate of Deposit (CD). The representative provided a detailed explanation and was very transparent. No personal information was requested, and the call did not involve any dubious actions or links. Fraudulent Call: On another occasion, I received a call seemingly from my bank asking for my Social Security number and asking me to verify my account by clicking on a link. Upon checking the original number, I realized it was a scam. I reported it to the bank, and they assured me that no information was compromised.

Remember, it is always better to be cautious and perform due diligence to protect your financial security.

Conclusion

In summary, while banks may call for legitimate reasons, it is crucial to be vigilant and question any request for personal information, links, or suspicious actions. Verify the legitimacy of each call to ensure your financial security. By staying informed and cautious, you can avoid falling victim to fraudulent activities and protect your financial well-being.