Bank Fraud Alert Text Scams
Americans lost $470 million to text scams in 2024, according to the FTC.
Quick Answer
Bank fraud alert text scams, a form of smishing, trick victims into giving up personal information by sending fake security warnings, leading to significant financial loss; consumers reported losing $330 million to text scams in 2022 alone, with bank impersonation being the most common type.
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How It Works
1
A scammer sends a text message that appears to be a legitimate fraud alert from a bank. The message often warns of a suspicious or large transaction and is designed to create a sense of urgency, prompting the recipient to act quickly.
2
The text message typically includes a link to a fake website that mimics the bank's real site or provides a phone number to call. If the recipient clicks the link, they are prompted to enter their online banking username, password, and other sensitive information.
3
If the recipient calls the provided number, they speak with a scammer pretending to be a bank representative. The fake representative then coaxes the victim into revealing personal details, account numbers, passwords, or one-time verification codes under the guise of stopping the fraudulent transaction.
4
Once the scammers have the victim's credentials or personal information, they use it to access the victim's bank accounts, steal money, and potentially commit identity theft. They may drain accounts, make unauthorized purchases, or open new lines of credit in the victim's name.
Red Flags
- The text message creates a sense of urgency or uses scare tactics, pressuring you to act immediately.
- It asks you to click on a suspicious link, which may be shortened or contain misspellings of the bank's name.
- The message requests personal or financial information like your password, PIN, or account number. Legitimate banks never ask for this via text.
- The sender's phone number is an unknown or unusual number, not a standard bank short code.
- The message contains grammatical errors, typos, or unprofessional language.
- You receive a follow-up phone call asking you to share a one-time verification code that was sent to your phone.
- The text describes a transaction or account issue that does not match your actual banking activity.
What to Do If Targeted
- Do not click on any links or reply to the message. Replying can confirm your number is active, leading to more scam attempts.
- Contact your bank directly using the official phone number on the back of your card or from their official website to verify the alert.
- Never provide personal information, account details, passwords, or one-time verification codes through a link or phone number sent in a text.
- Forward the suspicious text message to the number 7726 (SPAM). This helps your wireless provider identify and block similar fraudulent messages.
- If you have clicked a link or provided information, immediately contact your bank to report the fraud, change your passwords, and monitor your accounts.
- Delete the fraudulent text message from your phone to avoid accidentally clicking on it later.
How to Report It
- FTC — File a fraud report with the Federal Trade Commission to help them investigate and stop scammers.
- FBI IC3 — Report internet-enabled crime, including smishing and phishing, to the FBI's Internet Crime Complaint Center.
- IdentityTheft.gov — If you shared personal information like your Social Security number, report it to the FTC's identity theft unit to get a recovery plan.
- FCC — File a complaint about phone scams, robocalls, or unwanted calls with the Federal Communications Commission.
- AARP Fraud Helpline — Call 877-908-3360 for free support from trained fraud specialists. Available to anyone, not just AARP members.
Key Statistics
- Consumers reported losing $470 million to scams that started with text messages in 2024, a five-fold increase from 2020. — FTC 2025
- Bogus bank fraud warnings are the most common type of text message scam reported to the Federal Trade Commission. — FTC 2023
- In 2022, consumers reported losing $330 million to text scams, which was more than double the amount reported in 2021. — FTC 2023
- Reports of text messages impersonating banks increased nearly twentyfold between 2019 and 2022. — FTC 2023
- The FBI's Internet Crime Complaint Center (IC3) received 800,944 complaints in 2022, with total reported losses exceeding $10.2 billion. — FBI IC3 2022 Report
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Frequently Asked Questions
A bank fraud alert text scam, or smishing, is when a criminal sends a fake text message pretending to be from your bank. The message is designed to scare you into thinking there is a problem with your account, tricking you into clicking a malicious link or calling a fake number to steal your personal and financial information.
No, a legitimate bank or financial institution will never ask you to provide sensitive information like your password, PIN, Social Security number, or full account number via text message. Any text message that requests this information is a scam.
If you clicked a link and entered any personal information, you must act quickly. Immediately contact your bank's fraud department to report the incident, change your online banking passwords and PINs, and closely monitor all your account statements for unauthorized activity. You should also file a report with the FTC at reportfraud.ftc.gov.
Real bank alerts typically come from a consistent short code number that you can save in your contacts. They will not ask you to click a link to enter your login credentials or personal information. If you are ever unsure, do not interact with the text; instead, contact your bank through their official app or the phone number on the back of your debit card.
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