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Malvern Bank

Top Scam Red Flags: Protect Yourself from Fraud

Fraudsters are constantly developing new ways to trick people into giving away money or personal information. While scams can take many forms, they often share certain warning signs. Recognizing these “red flags” is one of the best ways to protect yourself—and your finances.

Below are some of the most common scams affecting consumers today, along with tips on how to spot and avoid them.

Bitcoin ATM Scams

How it works: Scammers may pose as the IRS, tech support, or even law enforcement. Victims are instructed to withdraw cash, deposit it into a Bitcoin ATM, and scan a QR code. Once funds are sent, they cannot be recovered.

Red flags:

  • Requests to pay debts or fees using Bitcoin
  • Instructions to keep the transaction secret from your bank
  • Pressure tactics that create fear or urgency

Phishing & Impersonation Scams

How it works: Criminals impersonate trusted organizations such as your bank, Amazon, Microsoft, or the IRS. They often claim your account is locked, that you owe money, or that you are due a refund.

Red flags:

  • Emails or texts from suspicious addresses or numbers
  • Requests for login credentials, remote access, or personal information
  • Language designed to create panic or demand immediate action

What to do:

  • Do not click links or call phone numbers included in suspicious messages
  • Visit the company’s official website directly to verify information
  • Report suspected scams to your bank or the FTC

Pig Butchering Scams

How it works: These scams often begin on dating apps or social media. Scammers build a relationship over time, gain trust, and eventually encourage victims to invest in fraudulent opportunities—often in cryptocurrency. Victims may see fake “profits” before losing access to all funds.

Red flags:

  • Attempts to quickly move conversations off the original platform
  • Pressure to invest urgently or keep investment activity secret
  • Use of unfamiliar apps or trading platforms

What to do:

  • Never invest based on an online relationship or advice from someone you have not met in person.

Money Mule Scams

How it works: Fraudsters recruit individuals to move stolen money by disguising it as legitimate activity. This may appear as a job offer, an inheritance, or a request from a romance partner.

Why it’s dangerous: Even if you are unaware of the fraud, transferring stolen funds can result in criminal charges.

Red flags:

  • Asked to open a bank account on someone else’s behalf
  • Directed to deposit funds and forward them via wire, cryptocurrency, or gift card
  • Offered vague job descriptions with no in-person contact

What to do:

  • Do not accept or transfer money for anyone you do not know well. Report suspicious offers to your bank immediately.

Quick Tips to Stay Safe

  • Take your time. Scammers rely on panic and rushed decisions.
  • Verify before acting. Use official phone numbers or websites to confirm requests.
  • Trust your instincts. If something feels wrong, it likely is.
  • Stay secure. Keep devices updated and enable strong passwords with two-factor authentication.

Report Suspicious Activity

If you believe you have been targeted by a scam, take action right away:

Malvern Bank: 712-624-8686
FTC Reporting Site: reportfraud.ftc.gov
AARP Fraud Watch Network: 877-908-3360

 

At Malvern Bank, your financial security is our priority. By staying informed and recognizing these red flags, you can take steps to protect yourself and those you care about from fraud.

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