Banks Won’t Always Save You from Scams

Banks Won’t Always Save You from Scams

It’s easy to feel secure about the money you deposit with a bank you’ve come to trust. After all, most banks and credit unions offer certain levels of protection against fraudulent transactions.

Banks, however, won’t protect you against all types of fraud.

Here’s a look at the protections that banks and credit unions usually provide to their customers – and which situations where you’ll likely be on your own.

When a Bank Usually Protects You

For credit cards, banks usually provide zero liability on any unauthorized charges.

Debit cards also provide protection against fraudulent purchases, but there may be limitations depending on which financial institution issued your card. According to federal law, here is the maximum amount of fraudulent transactions you’ll be responsible for depending on when you notify your bank that your card is lost or stolen:

  • Immediately notify your bank before any unauthorized charges are made: Zero liability
  • Within two business days: Up to $50
  • After two business days but within 60 days: Up to $500
  • Fail to notify within 60 days: Unlimited

When a Bank Usually WON’T Protect You

Unfortunately, there are many types of scams that banks won’t reimburse you for if someone steals your money. Here are some of the more common scams:

  • You are scammed into moving money out of your account and into another person’s account.
  • A hacker uses lies to convince you to make a bank transfer into a cryptocurrency wallet.
  • You liquidate your retirement funds and send the money to someone else for any reason, even if you were conned into it.
  • You make a person-to-person transfer to another individual using an online payment app, and that transfer doesn’t come with any type of purchase protection.

How to Protect Yourself from Common Banking Scams

Here’s how to protect yourself from getting scammed:

  • Don’t communicate about your accounts unless you initiate the conversation. If someone calls about your bank account, hang up and call the financial institution directly using your normal means of contact.
  • Never share your information. Don’t share account details or personal information online or over the phone, especially if you were asked to share these details in a phone call you didn’t initiate or via email.
  • Tell someone. Scammers try to isolate you from family members and friends. If you’re unsure about a banking transaction you plan to make, or you wonder if you’re being victimized, tell someone you trust about the situation.
  • Ask your bank for help. Bank tellers are trained to spot the early signs of fraudulent transactions. If you’re making a bank transfer and feel unsure about the situation, explain it to a teller or bank representative and ask for their help.
  • Report the incident. Whether you unfortunately got scammed or you spotted the attempted scam before withdrawing any money, submit a report of the situation by visiting ReportFraud.ftc.gov.
The Busy Business Owner: Get Back 15 Minutes a Day

The Busy Business Owner: Get Back 15 Minutes a Day

Meetings, phone calls, emails, text messages, and water cooler conversations with your employees constantly bombard you as a business owner. Freeing up 15 minutes a day could dramatically improve both your workflow and peace of mind.

Here are some ideas for getting back 15 minutes every day:

  • Use your phone. Whenever possible, use your phone instead of email. Oftentimes talking with someone directly is more efficient than spending the time to compose an email. Plus, email chains can fill your inbox and require precious minutes to read and decipher. Using the phone can also help avoid potential misunderstandings, as a person’s tone of voice conveys information that may be lost or misinterpreted when shared via a written message.
  • Be brief with emails. Many tech entrepreneurs are known for their brief emails that consist of only several words. In situations where you do use email, consider crafting a response that is only several words in length. And remember the golden rule of emails: send fewer emails to receive fewer emails.
  • Plan your meetings. Face-to-face time with colleagues, vendors, and customers is often productive and essential for growing a business. On the other hand, meetings can be a huge waste of time if not properly planned. Establish clear goals for a meeting in advance so your team can focus on priorities and get back to work.
  • Minimize distractions. Business owners enjoy developing a rapport with their employees. These personal conversations, however, need to have boundaries so that both you and your employees can stay on task. Tell your team if there’s a day you don’t have time for small talk. Consider putting an old-fashioned Do Not Disturb sign on your door when you need to get things done.
  • Delegate when possible. If you’re a small business owner who built a company from scratch, you may be reluctant to relinquish control over day-to-day operations. But failure to delegate can sap time from more important tasks like planning, building relationships with key vendors, and growing your customer base. So develop a plan to train your employees to assume more responsibility over time.

Fifteen minutes may not seem like much, but a busy business owner can work wonders with just a little more time every day.

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