Will your bank or investment fund stop a transfer to a scammer? Probably not

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We expect banks and brokers to keep our money safe. We think they’ll stop or warn us about suspicious transfers out of our accounts. But do they? Scammers are exploiting that trust and getting people to transfer their money and drain their retirement accounts to “protect” or “safeguard” or “legalize” it. The truth? The money gets stolen, and banks and brokers won’t get it back from the scammer.

Lots of financial ads talk about “zero liability” for fraud, so it’s easy to think your bank accounts and retirement funds are covered too. Think again. Bank accounts have different (and fewer) protections than credit cards:

• If you are scammed into moving your money out of your account, you won’t be protected if it turns out to be a scam. And you probably won’t get that money back.
• If you transfer your life savings into a cryptocurrency wallet because someone told you to, it’s nearly impossible to get it back.
• If you liquidate your retirement account and hand the cash over to someone else, the bank will not reverse the transaction. No matter how much you need your life savings, it’s gone.

If someone tells you to move your money to “protect” it, that’s outright theft. Remember:

• If it involves your bank account, retirement account, or life savings: stop. Hang up the phone. Call your bank or broker directly using a number you KNOW is right — not the number the caller used or gave you.
• Tell someone. Scammers want to isolate you from people you know and trust. Never agree to keep a secret — especially if you’re scared and worried. Always tell a family member or friend you trust — they care and can help.
• Listen and share. The bank teller or employee might not know you, but they do know the signs of fraud. If they ask, share why you're withdrawing cash. Let them help you figure out what's really going on.
• Don’t lie. The scammer, who might even try to keep you on the phone, will tell you to lie, so the bank won’t stop your transfer. Do not lie to avoid the bank’s security department.

Remember, if you get a call, email, or text message from someone you think is trying to scam you, report it as soon as you can to the FTC at ReportFraud.ftc.gov.

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