Moving money has never been quicker or more convenient—and fraudsters know it. Today’s payment scams often go beyond stolen card numbers. They work by pressuring people to authorize transfers themselves, using technology, misplaced trust, and a manufactured sense of urgency to make the request feel real. The result is costly: U.S. consumers report losing billions of dollars each year to fraud—more than $15.9 billion in 2025, a 25% increase over the prior year1—with payment-related scams among the most frequent tactics.
The good news? Understanding how these scams work and learning from others’ experiences can help you avoid becoming the next victim.
Real Stories That Could Happen to Anyone
“I thought I was talking to my bank”
It started with something small — just a few suspicious charges.
Maria* did exactly what you’re supposed to do: She called her bank. Soon after, she received a text confirming fraud alerts, followed by a phone call from someone claiming to be from the bank’s fraud department.
They sounded professional. They knew just enough about her account to seem legitimate.
“Your account may be compromised. We need you to move your money to a secure account immediately.”
Panicked, Maria withdrew her savings and deposited them into what she believed was a safe account.
It wasn’t.
Within hours, over $10,000 was gone.
What happened?
Fraudsters impersonated her bank and used urgency to override her instincts.
“I was just trying to sell a couch”
James listed his couch online and quickly found a buyer.
The buyer sent what looked like a payment confirmation and even added an extra $200 “by mistake.”
They messaged him immediately: “Oops — I overpaid. Can you send back the difference?”
Wanting to do the right thing, James sent the $200 back.
Then he checked his account.
There was no original payment.
He lost $200 trying to be honest.
What happened?
The scammer used a fake payment confirmation to trick him into sending real money.
“It looked like a normal payment”
Linda runs a small consulting business. One day, she updated payment details for a vendor after receiving an email request.
The email looked legitimate — same logo, same signature, same format.
She processed the payment.
Weeks later, the real vendor followed up: “We never received your payment.”
The money had been redirected to a fraudulent account.
What happened?
Fraudsters manipulated payment instructions — no hacking required.
The common thread: It feels real
These weren’t careless people. They were:
- Trying to protect their money
- Trying to do the right thing
- Following what seemed like legitimate instructions
That’s exactly how payment fraud works today.
Criminals don’t break systems — they break trust.
Warning signs to watch for
Most scams include at least one of these tactics:
- Urgent payment pressure: “You must act now or your money is at risk”
- Impersonation: “You missed jury duty and need to pay a fine.”
- Too good-to-be-true offers: “You’re a prize winner!”
- Unusual methods: Gift cards, wires, or payment apps
If you feel rushed or pressured, pause — that’s your biggest clue.
How to help protect yourself
✅ PAUSE before you act
Fraud thrives on urgency. Take a moment to think.
✅ Verify using a trusted source
Call your bank using the number on your card – not one in a message.
✅ Treat payment apps like cash
Once sent, payments are often immediate and irreversible
✅ Never move money to “protect it”
This is one of the most common scams – banks will not ask you to do this
✅ Protect your information
Never share passwords, codes, or login details
✅ Monitor your accounts
Set alerts and review transactions regularly
What to do if something feels off
If you suspect fraud:
- Report the incident immediately by contacting your bank or credit card company’s official toll-free phone number
- Secure your account by resetting passwords; log into your account and navigate to the “change password” option, usually via the “security” tab)
The faster you act, the better your chances of limiting the damage.
The takeaway
Payment fraud isn’t about intelligence — it’s about timing, trust, and emotion.
Typical scenarios describing fraud like the ones you just read start the same way: “It seemed legitimate.”
But with a moment to pause, question, and verify, the story can have a very different ending. An effective defense is awareness.
Stay alert. Stay informed. Protect your money.
Why do we ask so many questions? When you call M&T, you may be asked questions that seem to go beyond the standard name and address. If it feels frustrating or intrusive, please understand: Criminals call us trying to impersonate legitimate customers, so we’re just seeking to protect your accounts. Your safety is our top priority. Call us at 1-800-724-2440 (24 hours a day, 7 days a week).
* Names and scenarios are fictional and used for illustrative purposes only.
1. "New FTC Data Show a Big Jump in Reported Losses to Fraud to $12.5 Billion in 2024,” Federal Trade Commission, March 10, 2025.
1. "New FTC Data Show a Big Jump in Reported Losses to Fraud to $15.9 Billion in 2025,” Federal Trade Commission, March 10, 2025.
This article is for informational purposes only and is not intended as an offer or solicitation for the sale of any financial product or service. It is not designed or intended to provide financial, tax, legal, investment, accounting, or other professional advice since such advice always requires consideration of individual circumstances. Please consult with the professionals of your choice to discuss your situation.