Man looking suspicious

 

Fraud alert scams are not new, but scammers are upping their game with bots and AI technology. Messages and calls may look and sound completely legitimate — but behind the scenes, a scammer is trying to trick you into giving them access to your account. To protect against account takeover scams, always verify before you trust.

 

Be suspicious of ALL calls, texts, or emails claiming there is a fraud alert on your account. There's no need to panic. Simply reach out to your bank to confirm the message.

 

Example: Mobile Wallet Fraud Using OTP Bots

Recently, banks in Oklahoma have reported losses from a sophisticated form of account takeover called OTP bot fraud, according to the American Bankers Association (ABA).

 

Here’s how it works:

  1. You get a spoofed phone call that looks like it’s from your bank.
  2. The caller claims there’s suspicious activity on your account and asks you to confirm your identity.
  3. They trigger a one-time password (OTP) — a code your bank sends to verify a transaction — and convince you to read it to them.
  4. Once you share that code, they use it along with your email and password to take over your account.

From there, scammers can add your debit or credit card to a mobile wallet, make large purchases or drain your funds before you even realize what’s happened. 

 

 

Why Fraud Alert Scams Are Dangerous

The consequences of falling for a scam can be significant financial loss. Once scammers have your login credentials or key codes to bypass authentication channels, they will have immediate access to your account and can drain it in minutes.  

 

 

How to Protect Yourself From Fraud Alert Scams

  • Verify alerts directly with your bank. If you get a fraud notice, hang up or delete the message. Call your bank using the number on their official website. DO NOT CALL the number provided to you in the message – it could be a fake.
  • Never share passcodes or passwords. Your bank will never ask you to share OTP passcodes or passwords. Want to know what else they will never ask you to do? Visit ABA’s Banks Never Ask That campaign.
  • Watch for account changes. Review your transactions and contact information regularly. Look for changes you didn’t make and report discrepancies immediately.
  • Use strong passwords and change them periodically. This reduces the chance of someone guessing or reusing your credentials. Avoid using familiar passwords like birthdays, maiden names, etc.
  • Don’t panic. Scammers often pressure you to act fast — slow down and verify before you act!

 

 

Learn More and Stay Informed