Snap, deposit, scam: Unmasking mobile deposit scams

Remember the days when depositing checks meant a trip to the bank, filling out a deposit slip, and waiting in line? Talk about a time sink! Thankfully, those days are behind us. Mobile apps have made depositing checks as easy as snapping a photo — best part? You can do it in your PJs. But with convenience comes caution, and when it comes to your personal information and money, you need to be extra careful.

In this article, we’ll explore mobile deposit scams, how they work, and how you can protect yourself. Obvs, we’ll spill the beans on how using online security tools like Guardio is always a smart move when you're online. Let’s jump in!

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The magic of mobile deposits

So, what exactly are mobile deposits? Simply put, mobile deposits let you deposit paper checks using your smartphone’s camera without ever stepping foot in a bank. It's like having a mini-bank in your pocket! Just open your mobile banking app, snap a picture of the front and back of your check, and upload it with a few taps.

Whether you're lounging at home in your pajamas or on a tropical vacation, you can deposit checks with ease 24/7. Most banks use this nifty feature as long as you’re enrolled in Online Banking and have the banks Mobile App. It's quick, it's convenient, and it’s revolutionizing the way we handle our finances! Easy, peezy, lemon squeezy, right? Well…

Watch out for check deposit scams

As with all things tech and money, caution is key. Enter sneaky check deposit scams. These shams often start with a scammer contacting you via email or social media, pretending to be a potential employer, lender, or buyer on a marketplace site. They offer you a quick and easy way to make some cash by sending you a check as an advance or having you complete a simple task with the promise of payment.

This hooks you in – think about it, if someone sends you a check to deposit into your account, it's literally money in the bank. But there's a catch—After the initial contact, the scammer offers to send you an advance on the gig. You agree and give them your address, then they send you the check. Still following? Here’s where it goes down hill.

• They'll either send you a check, you deposit it, but then they'll either say they overpaid you or need you to send some of it back in the form of a cashier’s check, money order, wire transfer, or even gift cards. Before you know it, the check bounces as fraudulent, scammers got your cahs and you’re left holding the bag.
• If the scam is part of a job or prize scam, they may ask for your bank details, stealing both your information and your cash.

Both scenarios end badly. You lose cash, time, and your faith in humanity.

Common mobile deposit scams to watch out for

• Job/income scams: These mobile deposit scams often start with a fake job advertisement for positions like mystery shoppers or online data entry. You get the job (that doesn’t actually exist) and receive a check to deposit into your account. Then, you’re told to send part of the money elsewhere via wire transfer or money order. The catch? The check is fake, and you’re left with the loss.
• Fake contests: You get a call, email, or letter saying you’ve won a sweepstakes, lottery, or cash prize. To claim your prize, you’re asked to pay a fee or tax via wire transfer or gift cards. Sometimes, scammers also capture your account login information under the guise of improving your odds of winning. These types of financial scams often lead to significant losses, so staying alert is key for deposit
• Bogus dating profiles (catfishing): Here, scammers create a fake online identity to win your trust and affection. Once they’ve got you hooked, they use the fake relationship to manipulate you into sending money or sensitive information. This form of mobile banking fraud can be particularly damaging, as it preys on your emotions.
• Loan scams: Similar to job scams, these involve fake advertisements for loans. You deposit a fraudulent check, thinking you’re getting a loan, and end up losing money instead. This type of check deposit scam can leave you in a financial bind.
• Remote deposit scams: In these scams, the fraudster gains access to your bank account and deposits fake checks. Then, they ask you to withdraw the funds and send it back through a third-party money transfer service. This form of online deposit fraud can compromise your mobile banking security and lead to significant financial losses.

This is where cybersecurity software like Guardio comes into play. Remember that initial fake contact by the scammers, or fake job sites, and shopping sites we were talking about? Well, Guardio blocks them from the get-go. It's like having a security guard at the entrance to your digital world, ensuring you don't fall for these scams. Guardio detects, flags, and blocks them before you can even interact, keeping your online experience safe and secure.

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Businesses beware: Check deposit scams on the rise

Unfortunately, businesses are also at high risk of financial scams like online deposit fraud. Scammers have found a new twist by duplicating checks. Fraudsters replicate checks using screenshots of legitimate mobile deposits, putting both businesses and their employees in jeopardy.

Scammers can recreate checks from local businesses, likely using mobile deposit screenshots of real checks. They white-out the payee and amount, replace them with their own information, and leave the account numbers untouched. Eventually, the funds are withdrawn from the original account holder's account, resulting in significant financial loss.

This type of fraud is particularly alarming for businesses. It can drain company funds, damage reputations, and disrupt operations. Detecting this fraud is challenging because mobile deposits rely on check images rather than physical checks. Many mobile apps do not yet use advanced detection methods like artificial intelligence to differentiate between legitimate and fraudulent checks. This highlights the urgent need for cybersecurity tools like Guardio.

Guardio for Business offers enterprise-level cybersecurity that protects your business from:

• Scams, phishing, and malware: Guardio stops dangerous links and sites designed to cause damage to your business.
• Dangerous downloads: Guardio proactively blocks files that can wreak havok on to your computer and security.
• Data leaks: Guardio alerts you the moment your data is leaked online - so you can protect your business, clients and identity.
• Email phishing: Guardio filters out email scams and data theft attempts directed at you and your company.

Guardio for Business is quick to install, easy to use, and totally effective. Book a free demo, to see how we can keep your business safe and secure.

How to protect yourself from mobile deposit scams

Staying alert is your first line of defense against online deposit fraud. Always verify the source of any check you receive, especially if it's unexpected. Be wary of anyone asking you to send money back after depositing a check. Use cybersecurity tools like Guardio to block suspicious contacts and websites before they can reach you. Regularly monitor your bank statements for any unusual activity and report any discrepancies immediately.

Taking action after a mobile deposit scam

If you suspect you've fallen victim to a mobile deposit scam, act quickly. Contact your bank immediately to report the fraudulent check and any unauthorized transactions. File a complaint with the Federal Trade Commission (FTC) and your local law enforcement. Additionally, change your online banking passwords and monitor your accounts closely for any further suspicious activity. Taking swift action can help minimize the damage and protect your finances.

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With these habits, you can prevent fraudsters from taking advantage of mobile deposits and stay in control of your finances.

The bottom line

Protecting yourself from mobile deposit scams is crucial in today's digital world. By staying cautious and using cybersecurity tools like Guardio, you can enjoy the convenience of mobile banking without falling prey to scammers. Guardio offers robust protection, ensuring your online experience remains safe and secure. Stay safe, secure, and scam-free with Guardio.

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