Servicemembers: Lending a helping hand? Don’t hand over your phone

Lots of scams start online, but sometimes the scammer parks right next to you at the bank or outside a store. People are reporting millions of dollars lost in a scam that targets active-duty military and plays on their desire to help. In this con, scammers approach servicemembers to ask for help because they lost their debit card and need to pay for something like a hotel room or groceries. They want you to transfer them money using your phone, but it's a scam.

When you agree to help, the scammers tell you to use your phone to log into your banking app and transfer them money. They make up a reason for you to hand over your phone – maybe it’s to enter their information and finish the transfer. That’s when the scammer gets to work sending themselves screenshots of your account information (to use later). Or, they apply for an instant loan in your name and send the money to themselves through Zelle, another payment app, or by wire transfer. Or, the scammer uses a payment app to send themselves money through the app. And while they’re busy moving money around on your phone, the scammer’s sidekick distracts you with chatter about a past deployment.

When someone asks for your help, be safe:

• Never hand your phone over to a stranger who asks for it — even if it seems convenient. Bank accounts have different (and fewer) protections than credit cards, so your bank may not reverse a fraudulent transaction – no matter how large or small.
• Always use two-factor authentication (like a PIN code) for banking and payment apps, so no one else can transfer money through your mobile payment accounts.
• Already sent money to a scammer? Contact your bank or a mobile payment app company immediately. Ask them to reverse the transfer and give your money back.

If a stranger approaches you like this, tell your local police right away. Then, report it to the FTC at ReportFraud.ftc.gov and to your state attorney general.

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