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Top 6 banking scams and how to avoid them
Scams have become increasingly common, with the Federal Trade Commission data indicating that a total of 2.8 million consumers recently lost around $5.8 billion in banking scams in a year. The banking sector finds newer and better ways to tighten security and protect user data, but it is also important for customers to be vigilant and avoid falling for scamming tactics, especially because money lost in scams is difficult to recover. 1. Overpayment scams Anyone who owns a business and sells their product or services online would be most vulnerable to such scams. Here, a scammer posing as a genuine customer may pretend to overpay for a product using a counterfeit check or money order, then ask the business to send the difference via wire transfer. Not only will one lose money on the shipped order, but they may also end up paying a fee to the bank for the returned check. To avoid this, one should verify the buyer’s address, name, and contact details. Second, one should reject a check with an amount higher than the selling price of the product or service and accept only traceable online payments. 2. Check-cashing scams Check cashing scams thrive on one’s compassion.