Bank Fraud on the Rise: What You Need to Know About Impersonation Scams

Fraud is changing. Criminals aren’t just going after bank systems anymore, they’re going after people. One of the fastest-growing scams in banking today is impersonation fraud, where scammers pose as trusted bank employees to trick customers into handing over their login details and one-time passcodes (OTPs).

We’ve seen this trend firsthand, with reports of scammers pretending to be from the Fraud Department, calling customers and claiming there’s “suspicious activity” that needs immediate attention. The goal? To pressure you into giving up your information so they can get into your account.

How Impersonation Scams Work

These scams can look and sound convincing. Here’s the typical playbook:

• The Call or Message: You get a phone call or text that looks like it’s coming from your bank. Caller ID might even show the real bank’s number.
  
  
• The Urgency: The scammer says your account has been compromised and they need to “verify” your identity right away.
  
  
• The Ask: They’ll request your online banking credentials or one-time passcodes (OTPs) that your bank sends to you.
  
  
• The Break-in: With that information, scammers can log in as you, move money, or even add your card to their own digital wallet.
  
  

Why OTPs Aren’t Always Safe

One-time passcodes were designed to keep accounts safe, but they don’t work if you share them with the wrong person. If a scammer convinces you to read them a code, they can use it instantly. That’s why banks and regulators are encouraging stronger options like security keys and passkeys, which can’t be phished in the same way.

What You Can Do to Stay Safe

Protecting yourself doesn’t have to be complicated. Here are a few simple steps:

• Never share an OTP or password over the phone. A real bank employee will never ask you to read out a code.
  
  
• Call your bank, don’t call back the scammer. If you’re unsure, hang up and dial the number on the back of your card or visit your bank’s official website.
  
  
• Stick to official apps and websites. Don’t click links in texts or emails that claim to be urgent.
  
  
• Enable stronger security where possible. If your bank offers passkeys or authentication apps instead of SMS codes, use them.
  
  
• Set up account alerts. Notifications can help you spot suspicious activity quickly.
  
  

The Bottom Line

Scammers are getting more sophisticated, but their tactics rely on one thing: convincing you to hand over sensitive information. By knowing the signs and sticking to safe habits, you can protect yourself and help others by spreading awareness.

Remember: your bank will never ask you to share an OTP over the phone. If in doubt, hang up and call the bank directly.