WASHINGTON–Credit unions will want to continue to warn their members about bogus fraud warnings that purport to be from their CU, according to a new FTC report.
The Federal Trade Commission said bogus financial institution fraud warnings were the most common form of text message scam reported to the agency, and that many of the most common text scams impersonate well-known businesses.
In its newly issued data spotlight, the FTC has ranked the top five types of text message scam reported in 2022, with examples of each showing the ways that scammers craft messages designed to deceive consumers.
Consumers reported losing $330 million to text message scams in 2022, more than doubling what was reported in 2021, according to the FTC.
The FTC said its analysis looked at a random sample of 1,000 text messages reported to the FTC, finding that fake bank/CU security messages.
“These texts are designed to create a sense of urgency, often by asking people to verify a large transaction they did not make,” the FTC said. “Those who respond are connected to a fake bank representative. Reports of texts impersonating banks have increased nearly twentyfold since 2019.”
Other Leading Scams
After bank impersonation, the most frequently reported text scams were:
- Messages claiming to offer a free gift, often from a cell phone carrier or retailer
- Fake claims of package delivery issues from the USPS, UPS, or FedEx
- Phony job offers for things like mystery shopping and car wrapping
- Bogus Amazon security alerts.
Tips Shared
The FTC noted its new spotlight includes tips for consumers on how to spot text message scams and how to report the bogus text messages to their cell phone companies, device makers, and to the FTC.
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