Scammers are continually devising new tactics to defraud unsuspecting individuals of their hard-earned money. To shield yourself and your loved ones from falling victim to these fraudulent scams, it’s crucial to be vigilant and educated about the common types of scams that exist and how to recognize them.

At Pillar Bank, we encourage customers to use digital banking not only for convenience, but more importantly to keep tabs on their account activity. “Setting alerts in digital banking is a great way to get notified when something changes like your balance and puts you in control,” said our expert, Melissa Lokken. Watch the step-by-step video to learn how to set alerts, and never be shy about asking any member of Pillar Bank’s team for help!

Here’s a comprehensive guide to help you stay safe from scammers:
• Charity Scams – Particularly prevalent during times of heightened charitable giving, such as holidays or natural disasters, charity scams involve imposters posing as legitimate charitable organizations to solicit donations. Always verify the authenticity of a charity before donating by researching them online or through trusted sources.
• Debit Collection Scam – Fraudulent debt collectors may attempt to coerce individuals into paying nonexistent debts or debts that have already been settled. Never disclose personal financial information without first confirming the legitimacy of the debt collector. You can use this sample letter  to request more information. Read more about the warning signs.
• Debt Settlement and Relief Scams – Beware of companies that promise to alleviate your debt burden for a fee. Instead, seek assistance from reputable credit counseling programs that offer free services to help manage your finances.
• FDIC Logo Misuse – Scammers may misuse the FDIC logo to deceive individuals into believing that their accounts are insured when they’re not. Verify the legitimacy of a financial institution by using FDIC’s site, called BankFind
• Foreclosure Relief or Mortgage Loan Modification Scams – Fraudsters prey on homeowners facing foreclosure by offering false promises of loan modifications in exchange for upfront fees. If you are having trouble making payments on your mortgage, a HUD-approved housing counseling agency can help you assess your options and avoid scams. If you think you may have been a victim of a foreclosure relief scam, you may also want to consult an attorney. Learn more about mortgage loan modification scams.
• Grandparent Scams – Scammers impersonate relatives in distress, often requesting urgent financial assistance. Verify the caller’s identity before sending any money and educate older adults about this common scam tactic. Read more about other ways to protect older adults from fraud and financial exploitation.
• Imposter Scams –Fraudsters impersonate trusted entities, such as government officials or charities, to deceive individuals into sending money. Always verify the legitimacy of the caller before providing any financial information. Read more about imposter scams.
• Mail Fraud – Be wary of mailings promising prizes or rewards in exchange for payment or personal information. The USPS has identified common postal or mail fraud schemes . If you’re a victim of mail fraud, you can file a complaint through the U.S. Postal Inspection Service .
• Money Mule Scams – Individuals recruited as money mules unknowingly facilitate fraudulent activities by transferring money on behalf of scammers. Refrain from engaging in financial transactions with unknown parties or offers that seem too good to be true. Learn more about the red flags and what to do if you’re a victim of a money mule scam.
• Money Transfer or Mobile Payment Services Fraud – Scammers exploit money transfer services to swindle money from victims. Exercise caution when sending money to unfamiliar individuals and verify the legitimacy of requests before proceeding.
• Mortgage Closing Scams – Homebuyers are targeted with fraudulent emails posing as real estate agents or settlement agents, aiming to steal closing funds. Confirm payment instructions directly with trusted individuals to prevent falling victim to this scam. Learn more about what steps you should take to help protect your closing funds.
• Lottery or Prize Scams – Scammers falsely claim that individuals have won prizes but demand upfront payments for fees and taxes. Never provide personal or financial information to unknown parties claiming lottery winnings. Learn more about lottery or prize scam red flags.
• Romance Scams – Fraudsters develop relationships with individuals online to gain their trust before soliciting money. Remain cautious when sharing personal information with online acquaintances, especially regarding finances. Learn more about how to avoid romance scams.

Scammers employ various payment methods, including wire transfers, person-to-person payment services, mobile payment apps, and gift cards. Avoid sending money to unknown parties through these channels.

If you’re a victim of a scam, you can report it to the authorities by:
• Submitting a complaint online with the Federal Trade Commission
• Contacting your local police or sheriff’s office
• Reporting it to your state attorney general