Fake bank fraud alerts are the most common text message scam, FTC says

According to a data spotlight report by the Federal Trade Commission (FTC), fake bank security alerts are the most prevalent type of text message scam (smishing) in the United States.

Scammers send urgent text messages pretending to be from major financial institutions, asking consumers to verify a suspicious transaction. The message often reads like a standard, automated fraud alert: "Did you authorize a Zelle payment of $1,000? Reply YES or NO."

When a victim responds, the scammers typically escalate the attack. They may direct the victim to a flawlessly cloned banking login page to harvest their username and password. Alternatively, they call the victim directly, posing as a bank fraud specialist. During the call, they trick the victim into transferring their own money to a "safe account" to reverse the fake charge—when in reality, the money is wired directly to the thieves.

The FTC noted that consumers lost $330 million to text scams in 2022, with bank impersonation accounting for the largest share of those losses by far. Cybersecurity experts and officials strongly advise consumers to never click links or reply to unexpected banking texts. Instead, customers should always verify account issues by hanging up and calling their bank directly using the official phone number on the back of their debit or credit card.