Credit and Debit Card Scams: Fake Fraud Alerts and Texts

Your phone buzzes with what looks like an alert from your bank: a purchase of more than a thousand dollars has been attempted on your card. Was it you? Reply YES or NO. It is a frightening message, and that is exactly why it works.

Fake fraud alerts are one of the most common ways scammers go after card and bank customers. This guide shows what they look like, what happens if you respond, and how to protect your money — including how to dispute a charge.

How big is the problem?

When the Federal Trade Commission analyzed text scams in 2023, bank impersonation was the most-reported text message scam, with reports of texts impersonating banks up nearly twentyfold since 2019. In its review of 2024 text scams, the FTC again listed fake fraud alerts among the top five. And in 2025, people 60 and older reported about $72 million in losses from credit card and check fraud to the FBI’s Internet Crime Complaint Center.

The fake fraud alert text

According to the FTC, these messages appear to come from a bank or a big retailer like Amazon. They claim suspicious activity or a large purchase you didn’t make — creating a sense of urgency — and ask you to reply or call.

EXAMPLE — SCAM

Today 10:26 AM●●● ▮

# (213) 555-0174 Text message

FRAUD ALERT: Did you attempt a purchase of $1,249.00 at an electronics store? Reply YES or NO. If NO, our fraud team will call you shortly to secure your account.

What happens next: the FTC says people who reply are connected to a fake bank representative — a “fraud department” that pressures them to move money to “keep it safe.” That money goes straight to the scammers.

The fake fraud department call

Sometimes the scam starts with a phone call instead, and caller ID may even show your bank’s name, because scammers can fake any number.

EXAMPLE — SCAM

Today 10:31 AM●●● ▮

Incoming call Your Bank (spoofed)

Caller: Hi, this is the card security department. We blocked a suspicious charge, but someone inside your branch may be involved, so we need to act quickly.

Caller: To verify you, please read me the full card number, the PIN, and the six-digit code we just sent to your phone. Then we’ll move your balance to a protected account in your name. Please don’t discuss this with the branch staff.

Every part of that call is a red flag: a request for your full card number and PIN, a request for a code sent to your phone, a “protected account,” and a request for secrecy.

How the scam escalates

The FTC’s 2025 analysis of large losses by older adults describes a pattern that often starts with a “fake alarm”: your accounts are being used by someone else. The scammer then insists that following their instructions is the only way to protect your money, and keeps you on the phone so you can’t check with a friend or relative. Victims have been told to move money by bank transfer, withdraw cash, buy cryptocurrency at Bitcoin ATMs, or even buy gold.

The FTC’s advice is direct: don’t move money to “protect it,” and never send money in response to an unexpected call or message — no matter who the caller claims to be.

Other card scams to know

• Fake shopping sites. Low prices on brand-name goods can lead to a scam site that takes your card number. See how to check if a website is legit.
• Phishing emails and texts that ask you to “update your payment method.” Legitimate companies won’t email you a link to update payment information, the FTC says. See phishing email examples.
• Small “fees” in fake texts, like a redelivery fee for a package or an unpaid toll, which are really a way to get your card number. See the USPS text scam and toll scam texts.

How to check a fraud alert safely

1. Don’t reply, tap a link or call the number in the message.
2. Use a number you already trust: the one on the back of your card, on your statement, or in your bank’s official app.
3. Ask the bank directly whether there is any problem with your account. If the alert was real, they will tell you.
4. Never share a PIN, password or one-time code with someone who contacted you.

If you see a charge you didn’t make

Your rights are strong, but act quickly:

• Credit cards: the FTC says federal law limits your responsibility for unauthorized charges to $50. Report the charge and file a dispute (also called a chargeback) online or by calling the number on the back of the card. Then follow up in writing to the address for billing disputes. The FTC says your letter should reach the card issuer within 60 days after the first bill with the error was sent to you.
• Debit cards: contact your bank or credit union right away. The FTC notes that federal law also protects you from unauthorized debit card use.
• Keep records of every letter, note and email about the scam.

If you already gave out your card number or moved money

• Card number: call your card company to cancel the card and dispute any charges.
• Moved money by bank transfer or Zelle: call your bank immediately and ask them to reverse the payment. If the bank won’t help, the FTC says you can file a complaint with the CFPB at consumerfinance.gov/complaint.
• Bought gift cards, crypto or gold: see our first-hour checklist for each payment method.

Then report the scam: forward scam texts to 7726 (SPAM) and file a report at ReportFraud.ftc.gov.