Imagine receiving a text message warning you of suspicious activity on your account. Moments later, your phone rings, showing your financial institution's name on the caller ID. The person calling knows your name, some other personal information and urgently warns you that your account is at risk. It feels entirely authentic, but you still calmly hang up the phone, knowing your financial institution would never call you out of the blue or ask for your two factor authentication code (2FA).

Bank impersonation fraud is increasing across Alberta, becoming more sophisticated, believable and personalized through the use of AI. Let’s cover what these scams involve and how they operate, so you can hang up the phone or ignore that “urgent” text message or email without feeling guilty or overwhelmed.

An old scam, made modern with AI

When criminals contact you pretending to work for your financial institution, that’s a bank impersonation scam. They use real-looking logos, spoofed phone numbers that appear to be the bank's official number and might even come to your home. AI tools, such as generative AI chatbots and AI voice cloning are often used to make these scams seem even more realistic.

Their goal is simple: to trick you into revealing your usernames, passwords, account numbers and other personal information.

Common examples include:

• Text messages claiming to be fraud alerts
• Phone calls pretending to be from your financial institution, often spoofing the real phone number of your financial institution 
• Emails with links that redirect you to fake, but realistic looking, websites
• Unexpected home visits where individuals ask to collect information for an "investigation"

Scams usually begin subtly, sparking curiosity or concern, but will escalate things quickly if they sense fear or uncertainty, training to put your mind and body into fight or flight mode, so that you’ll stop thinking critically.

How scammers gain your trust

Scammers often follow a predictable approach:

• Creating urgency: They claim immediate action is required to protect your account, causing panic and rushed decisions.
• Appearing legitimate: Scammers use AI to mimic real bank communications, clone voices and design realistic websites.They also may personalize their scams using information from your social media or leaked personal data
• Requesting confidential information: Real financial institutions never request two factor identification codes (2FA), PINs, passwords, or passcodes over the phone, text, or email.
• Building trust progressively: Scams may start with a text, followed by a call or home visit, creating a sense of legitimacy. They may even provide advice that seems to make sense, to encourage you to lower your guard.
• Manipulating emotions: They exploit kindness or fear, such as asking you to help investigate an internal issue or warning that your account could be frozen. If you have been a target of scams in the past, a scammer may even say they are attempting to help you recover lost funds.

Steps for staying safe

You can protect yourself by staying alert and following these simple guidelines:

• Take your time: If a message creates urgency, pause and think clearly. Real financial institutions will never pressure you.
• Use official contacts: Always use the contact details from your official bank card or official bank website rather than responding directly to suspicious messages.
• Protect sensitive details: Never share your PIN, password, or security codes via phone, text, or email.
• Be cautious with unexpected visits: Financial institutions never send representatives unexpectedly. If someone arrives at your door, close it and call your bank directly.
• Trust your instincts: If something feels wrong, even slightly, reach out directly to your financial institution.

ATB will never request your password or PIN, pressure you into immediate action without time for verification, send someone to your home or workplace unexpectedly or ask you to assist in an investigation by withdrawing or transferring funds.

Fraudsters may be evolving their tactics, but Albertans are becoming smarter and more aware. Help us spread the word by sharing ATB’s Free Expert Anti-Fraud Training with your friends and family.