“If it’s too good to be true, it probably is.” When it comes to banking “hacks” on social media, this phrase should be a guiding principle. Earlier this fall, the internet was inundated with videos claiming to help people get “free money” from their local ATM. Too good to be true? Yes. Customers were convinced to write checks for amounts well above their balance, deposit them, and immediately withdraw cash. This “hack” goes by another name. Fraud. Specifically, this is known as check-kiting.
So, how can folks protect themselves from being convinced this is a good idea? Keep in mind that just because something is popular on social media doesn’t make it true. People can make very catchy or convincing content that has no substantive backing. If in doubt, ask a trusted, reputable source. Another way to stay ahead of these scams is to brush up on financial skills and up-to-date information from trusted sources.
Another indicator that something might not be right is the feeling of pressure to do something right away. This is done to bypass critical thinking that might prevent a scam before it starts. Also, be cautious of any “hacks” that involve exchanging money for crypto or foreign currency.
Protecting your finances can be easier when asking questions that engage critical thinking skills. Is this a trusted source whose information can be verified by a reputable third party? Do I feel pressure to act fast so I don’t miss out? And ultimately, does this sound too good to be true? These questions can help you spot the difference between a helpful hack and fraud.