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Beware of Bank Examiner Scams: How to Spot Them and Protect Yourself

In a world where scammers are constantly devising new tricks to exploit unsuspecting individuals, bank examiner scams remain a significant threat. These scams often target vulnerable individuals, leveraging the authority of a “bank examiner” to deceive people into surrendering money or personal information. Here’s what you need to know about bank examiner scams and how to stay protected.

What is a bank examiner scam?

In a bank examiner scam, a scammer poses as a “bank examiner” or a law enforcement officer working with a bank or credit union to investigate fraudulent activity on the victim’s account. The scammer will reach out to the victim, usually by phone, and inform them that their bank or credit union is under investigation, often suggesting that a bank employee or their credit union representative may be involved in illegal activity. The fraudster then claims to require the victim’s assistance in catching the wrongdoers. They’ll persuade the victim to withdraw money from their account or share personal account information under the guise of a “covert operation.”

Unfortunately, these scams are sophisticated and can seem legitimate to the unsuspecting victim. For example, the scammer may know specific details about the victim’s banking history or account, making the call appear to be authentic.

Red flags to recognize a bank examiner scam

Don’t get caught in a bank examiner scam! Here are some red flags to watch for:

  • Unannounced phone calls. Banks, credit unions and law enforcement agencies generally do not contact customers by phone without advance notice.

  • Request for confidentiality. Scammers will insist that the victim not speak to anyone, including family members, bank employees or reps at their credit union, about the alleged investigation. Real investigations do not require secrecy from the person being “helped.”

  • Urgency and threats. Scammers thrive on creating a sense of urgency so the victim has little or no time to think. Legitimate bank, credit union and law enforcement officials do not pressure individuals into taking immediate action.

  • Requests to withdraw money or share personal information. In any legitimate investigation, law enforcement, bank officials or credit union reps would not ask an individual to withdraw money from their account or reveal sensitive information. If you’re asked to share personal data, it’s a huge red flag.

  • Typos and poor grammar usage. Many scammers operate from overseas, and they usually give this away in their written communication.  Keep an eye out for anything that seems off or overly scripted.

Protect yourself

Here’s how to protect yourself from a bank examiner scam.

  • Be wary of unsolicited calls. Be cautious about any unexpected calls or messages claiming to be from a bank, credit union or law enforcement agency, especially if they involve your personal accounts or require urgent action.

  • Verify any alleged suspicious account activity with your financial institution. If you’re contacted by someone claiming to be a bank, credit union employee or law enforcement, don’t provide any information. Hang up, and contact your bank directly using the number on your official bank statement or the bank’s website to verify if there’s any legitimate concern.

  • Never share personal information or withdraw money over the phone with an unverified contact. Legitimate bank and credit union representatives will never ask you to withdraw money, transfer funds or provide your account details as part of any investigation. Decline requests like these, no matter how persuasive the caller may be.

If you’ve been targeted

If you believe you’ve been targeted by a bank examiner scam, there are several steps you can take to mitigate the damage and potentially recover some of your funds.

First, contact your bank or credit union immediately and inform them of the scam. They can assist in securing your account and may have advice on further steps.

Next, report the scam to the appropriate authorities. Reach out to the FTC, local law enforcement agencies and/or your state’s attorney general’s office to report the scam. They may be able to provide resources for recovery.

Finally consider identity theft protection. In some cases, scammers who succeed in getting your personal information may try to use it for identity theft. Identity theft protection or monitoring services will notify you of any suspicious activity with your accounts and ensure their continued safety.

Bank examiner scams can be hard to spot, but you can outsmart the scammers. Stay alert, and stay safe!

OMNICOMMANDER