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5 Common Banking Scams To Watch Out for in 2025 — and How To Avoid Them

It’s a new year — and if there’s one thing we can count on in 2025, it’s that scammers will keep getting more creative in their attempts to take advantage of unsuspecting consumers. As technology continues to advance, it’s giving these criminals ever more sophisticated ways to trick victims into handing over their money. But when it comes to steering clear of scams, knowledge is often your best defense. Here’s a look at five common banking and finance-related scams that are set to pick up steam in the coming year — and the steps you can take to avoid them:

1. AI-Assisted Scams

With the help of artificial intelligence (AI), scammers are creating convincing messages that mimic people or organizations the intended victim may trust. For example, a fake phone call from what sounds like a family member or friend might suggest there’s an emergency that needs resolving, or a fraudulent text impersonating a legitimate business might convey that account issues need to be addressed. In most cases, the messages will express a sense of urgency — and they’ll almost always include a request for funds, at least eventually.

How to avoid falling victim:

If you ever receive an unusual request from a family member, friend, business, etc., reach out to verify the communications using a contact method you know is legitimate before taking any action in response. For example, you could call or text the friend directly at his or her personal number, or call the business using the phone number listed on its website. If the request comes via a phone call, ask questions that only the friend or family member would know how to answer correctly. And if the message comes via text or email, be especially leery of any unknown links included in the message. By being skeptical and taking extra steps to confirm the legitimacy of any out-of-the-ordinary requests, you can protect yourself from being scammed.

2. Scam Job Offers

With work-from-home and other remote jobs on the rise, it’s not uncommon for employees to be hired without ever meeting their new employer in person. Scammers are taking advantage of the trend by posting fake job listings designed to look legitimate and lure job seekers to apply. Then, at some point during the supposed hiring process, the scammer will ask the applicant to send funds for “job supplies” or “training” — which should raise a big red flag.

How to avoid falling victim:

Before applying for any job, confirm the employer is legitimate. If you’re not certain of the business’s or job offer’s authenticity, track down the company’s official website and reach out using the contact information provided there to confirm. Also, be aware that it’s highly unusual for any legitimate business to ask for up-front funds from an applicant or new hire — be skeptical of any such request.

3. ‘Investment Opportunity’ Scams

Especially as the popularity of cryptocurrency and online investment platforms grows, scammers are seizing the opportunity to catch their victims’ interest — and take their money — with the promise of fast and easy investment returns. To seem more authentic, the criminals often employ websites that look legitimate, along with convincing testimonials from satisfied “investors,” to lure victims to send funds that ultimately provide nothing in return.

How to avoid falling victim:

Beware of any investment opportunity offering “guaranteed” returns or promising other results that seem too good to be true — especially when connected to highly volatile commodities such as cryptocurrency. Before committing to any investment, always do research to confirm it’s legitimate, and never send funds to unverified recipients or via unfamiliar platforms. If you’d like to make an investment, it’s best to stick with well-known and respected financial institutions with a long history of legitimately serving their customers.

4. Subscription Service-Centered Scams

With most modern consumers carrying subscriptions to services such as streaming video and/or audio platforms, cloud storage, internet-based software, etc., scammers have taken notice. They’ve begun sending out fake emails and texts designed to look legitimate, often asking recipients to follow a link to “update your payment info” or resolve another supposedly urgent issue with their account. In reality, the link directs victims to a fraudulent site designed to harvest their sensitive personal and financial details.

How to avoid falling victim:

When managing any subscription or service online, always access your account by visiting the service provider’s official website to log in rather than following a link in any email or text you might receive. To confirm any potential issues with your account, you can also contact the provider directly using the customer service phone number posted on the company’s official website.

5. Online Shopping — and Dubious Delivery — Scams

Many of today’s consumers routinely shop online for the products and services they need. To take advantage, scammers are creating fake websites designed to look like legitimate online businesses, as well as posting fraudulent listings to online sales forums such as Facebook Marketplace and Craigslist. And since most online purchases are delivered via the postal service or other package-delivery services, scammers are also sending out emails and texts fraudulently claiming that there are delivery issues that need to be resolved.

How to avoid falling victim:

When shopping online, always be skeptical of unfamiliar websites offering goods and services at prices that seem too good to be true, and research any retailers you haven’t heard of before. Rather than clicking through on any links you may receive in a text or email, always visit the websites of online retailers, package-delivery services, etc., directly via their official web addresses, or call them using a verified phone number. For added safety, consider using credit cards to make your online purchases, as they often offer built-in fraud protection. Finally, when buying items via an online marketplace like Craigslist or Facebook Marketplace, always meet any unknown seller in a familiar and safe public place. Also, avoid making any deposits or payments to them before confirming that the item and offer are legitimate.

More resources for protecting yourself against scams

Looking for additional helpful information about scams and how to avoid falling victim to them? The Arthur State Bank blog offers a wealth of guidance on topics like how fraud and scams differ, protecting yourself from phishing scams, avoiding identity theft and more.

Proudly serving South Carolina since 1933, Arthur State Bank offers accounts and services to meet a variety of financial needs. To help you achieve all your financial goals, the bank offers in-person service as well as a range of convenient digital solutions. To learn how Arthur State Bank can help you with banking needs ranging from checking and savings to retirement accounts, mortgages, other personal loans and more, visit arthurstatebank.com.

Man doing his banking online

AnnualCreditReport.com is the only source for free credit reports authorized by the federal government. Every 12 months, you can get a free copy of your credit report from each agency.

Your credit report has your credit history for all of your credit accounts as well as any credit inquiries and public record court information such as collections. In addition, the report provides personally identifiable information such as your name, address, and employment.

Be sure to carefully review all three reports to identify any problem areas that you may need to clean up prior to applying for a mortgage. If there is any incorrect information, follow the reporting agency’s rules to correct it or add a notation to the report to explain the situation.

Your FICO Score is a score combines data from several areas include payment history, the amount owed, length of credit history, new accounts. Many lenders use this score as a guide. This score is not provided as part of the free annual credit report.

Learn more about how your credit score impacts your ability to secure a loan.

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Couple looking over finances

Primary considerations for setting your housing budget require an assessment of your income, debt and current savings for the down payment on the home. The following are generally recommended guidelines; however, you should meet with an Arthur State Bank lender to get personalized mortgage information.

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Couple meeting with lender

The pre-qualification/pre-approval letter is included with any offer you make on a house to inform the seller that you have met with a mortgage lender and you are prepared to make an offer. The letter states that based on certain assumptions, the bank is prepared to lend you up to a specified amount of money for a home mortgage.

When choosing a loan officer, we recommend going local to work with someone who understands your community’s real estate market. This blog on first-time home purchases includes questions to ask your lender that may be helpful when preparing for your meeting.

Helpful Resources:

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Realtor shaking hands with a client

When a house is sold, the seller typically pays real estate commission to both the listing agent and the selling agent. It is extremely beneficial for the buyer to use their own real estate agent. Loan officers can often recommend selling agents in the area; ask your officer about realtor referrals when discussing your loan.

A good realtor will know the local market and can help you find an ideal home based on your budget, location and desired features. During your search, understand that you will most likely need to compromise on some items, so it’s important to identify your critical needs versus your wants.

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Couple searching online for a home

Additionally, when you start with the house search and work backwards, homes can often go off the market while you’re completing steps 1-4. While browsing homes immediately can be tempting, we recommend following these steps in order so that, once you find your dream home, you’ll be well-positioned to take action immediately.

When you find the home you want and you think you are ready to put an offer on it, you will want to make sure you have all the information you need to make a solid offer.

  • Evaluate the neighborhood.
  • Drive by the house at different times of the day.
  • Examine how other houses in the neighborhood are maintained.
  • Consider any potential traffic or other disruptive noise.
  • Is there ample parking for you and visitors?
  • Read the details in any Homeowner Association agreements (HOA fees and rules).

Make sure to do a preliminary check of house details:

  • Check the water:
  • Does it have good pressure?
  • How long does it take to get the water hot?
  • Is it well water or city water?
  • Turn light switches on and off.
  • Open and close doors and windows to make sure they work properly.
  • Review previous utility bill expenses.
  • Consider the property tax bill.

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Family meeting with realtor at new house

When writing an offer contract, be sure to pay attention to all of the details.

Offer Price:

Your agent should do a market analysis that pulls data on recently sold comparable houses. The best comparisons will come from the same neighborhood.

If you are asking for the seller to pay some of the closing costs, remember that this cost plus the sales commission determines the net amount you are offering the seller for the house.

Work with your agent on your negotiation strategy. There are many things to consider, such as how badly you want this particular house, whether it is a buyer’s or seller’s market and an assessment of the seller’s motivation to get the property sold.

There isn’t one best strategy.

Be sure to document in writing everything you want included with the house, such as appliances, etc. Your agent should guide you through the contract step-by-step.

Contingencies:

  • Home inspection.
  • Mortgage.
  • Final walk through (24 hours prior to closing).

Proposed closing date. Typically, this is 30-45 days from an accepted offer.

A good-faith deposit is required for the offer. This is typically between 1-10% of the purchase price of the house. The deposit is kept in escrow until closing and the money is applied to the purchase price of the house at closing. If the house does not close due to one of the contingency clauses, the buyer receives their money back. However, if the buyer decides not to close on the property, the seller may get the deposit money.

Attach your pre-approval letter to the offer.

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Two people in professional meeting

The clock starts ticking for everything documented in the contract, including mortgage application, inspections and closing date.

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Woman advising other woman on mortgage application

You will need to decide which mortgage to select prior to the application.

Plan for the following potential fees:

  • Application fee (many banks and mortgage companies charge an application fee; however, there is not an application fee at Arthur State Bank).
  • Credit check.
  • Appraisal (may be paid at closing).
  • Loan origination fee (paid at closing).

Once you have approval for your loan, make sure you don’t change anything that will impact the status of your mortgage. Banks do a final check on credit and jobs just prior to closing, so now is not the time to change jobs or make another purchase on credit such as a car or furniture.

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Home inspector going over findings with home owner

Depending on the size of the house, an inspection can cost on average between $300 to $1000.

Many real estate contracts specify how problems uncovered in the inspection will be resolved, up to a certain dollar amount. Should necessary repairs exceed that amount, the buyer has the option to cancel the contract without penalty and receive their deposit money back. Another option is for the buyer and seller to renegotiate who will pay for additional repairs.

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Woman happily holding keys to her new home
  • Homeowner’s insurance is required by the lender prior to closing on the loan.
  • Turn on utilities in your name, effective the closing date.
  • Change your address with the U.S. Postal Service.
  • Make moving arrangements.

Three days prior to closing:

  • You should receive your final Closing Disclosure from the closing agency. The final Closing Disclosure shows a column for the seller and a column for the buyer. All closing charges and credits for both the seller and the buyer are documented in the closing statement.
  • Review the closing statement for accuracy prior to coming to closing.
  • The final amount in the buyer’s column shows you the amount of money you need to pay at closing.

The closing office will provide specific payment instructions. Closing funds have become recent targets for cybercriminals. If you are asked to use a wire transfer, call the office and ask to speak to someone you have been working with to double-check the instructions.

Closing day:

In South Carolina, the closing will usually take place at the attorney’s office. Everyone signing for the mortgage must be present to sign the closing paperwork. Make sure you bring the following:

  • Cashier’s check or proof of payment for wire transfer.
  • Driver’s license.
  • Checkbook, just in case there are any additional items that were not on the closing statement.

Be sure to understand this information:

  • How and when you will pay:
  • Your mortgage.
  • Your property taxes.
  • Your homeowner’s insurance.
  • Any HOA dues.
  • Who to call with any questions.

The best practice is to go through the homebuyer’s roadmap in this sequence. However, if you jumped ahead early in your journey, just circle back to address the steps you missed.

Arthur State Bank’s loan officers are closely tapped into local real estate markets and experts at helping clients get what they need on terms that work for them. We also offer mortgage specials for first-time homebuyers.

To start planning your journey to your dream home, try out our mortgage calculator. If you’re ready to talk to a loan officer, contact Arthur State Bank to request personalized mortgage information today. Don’t forget to ask about our first-time homebuyer offer.

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