Pre-approved notice scams belong to the phishing category. Attackers send email notifications about the approval of a new credit card or a personal loan. The email seems to come from the bank, so it can easily make users fall into their trap.
In this article, we let you know how to recognize these scams and avoid becoming their victim.
How do pre-approved notice scams work?
Everything starts with an email that informs victims their loan or credit card has been pre-approved. This might seem to be a really good piece of news for those in need of money. They are the first to fall into this online scam.
To make sure that their victims would follow the next steps, scammers promise extremely attractive credit limits and immediate approvals. So, everything seems like a dream that comes true.
One of the tricks is that villains also include in their email notifications a check on the name of the recipient. It seems as if the victim can cash it immediately. But to do this, scammers ask for personal information, which they then use to empty the bank accounts. Also, they might commit identity theft.
Once the victims are convinced of the value of this bargain, attackers ask for a downpayment, to complete the application. In fact, the application does not exist.
Of course, if any victim sends the money for the downpayment, hackers take the money and never come back.
Read on to learn how to spot this kind of message and keep your bank account safe.
How to avoid this phishing scam
To be able to avoid this phishing scam scheme, you should, first of all, recognize it. So, here are the main signs that should put you on guard:
1. Request for down payments to submit an application.
2. Money requests via cash, gift cards, or wire transfers.
Whenever you might receive such a ‘hard to believe’ offer, remember to:
1. Never send money to unverified accounts.
2. Check if there is any disclosure of loan fees,
3. Check the annual percentage rate (APR),
4. Verify the payment schedule.
5. Carefully read the loan agreement, if there is any. If there is not, you probably face a scam.
6. Look for an opt-out notice for future offers.
7. Look for the contact information of the sender. If there is any, double-check if this is the same with the bank’s contact details.
8. Check directly on your bank’s official web page, and confirm it with the bank, by phone.
Now, that you know how to recognize and protect yourself from pre-approved notice scams, you should never become a victim of villains.