Scammers may use small, unexplained charges on your bank statement, known as phantom payments, to test your account. If you notice these charges, be vigilant as they could lead to larger fraudulent transactions. It’s crucial to regularly review your bank statements and report any suspicious activity to your bank and the FTC.

Phantom payments are typically for small, odd amounts like $0.37 or $1.12, to avoid detection. Pay attention to generic merchant names or unfamiliar charges. Setting up bank alerts for new transactions and updating your payment information are crucial steps to protect against fraud.

If you suspect fraudulent charges, contact your bank immediately to freeze your card and report the incident. Update your payment information and consider setting up multifactor authentication for added security. Regularly changing your banking passwords and reviewing credit reports can help prevent identity theft.

Don’t ignore phantom payments as they could lead to further fraud. Act quickly if you suspect your account has been compromised to safeguard your money and personal information. Stay informed on how to protect yourself from banking scams and be proactive in monitoring your accounts for any suspicious activity.

Read more at Yahoo Finance: ‘Phantom payments’ are the first warning sign you’re being targeted by scammers