Fraud Examined: Bank Loading

Let's peel back the curtain on the not-so-magical world of bank loading scams, where criminals play a high-stakes game of digital hide-and-seek with illicit funds.

Here’s what you need to know:

What is a Bank Loading Scam?

Bank loading is a form of money laundering in which criminals illegally transfer funds into someone else's bank account. Once they have the account numbers, they can write fake checks, withdraw as much money as possible before getting caught, clean dirty money, or all of the above.

Picture this: Someone reaches out to you via social media or you see a post asking if someone uses a specific bank. The scammer promises to deposit $20,000 into your bank account if you give them half. Sounds too good to be true, right? That’s because it is.

Here’s the Play:

1. Find the Numbers: All it takes is an account and routing number from any decent-sized account. Businesses are a great target for this scam.

2. Fake It 'Til You Make It: With those numbers, scammers whip up fake checks using easily bought check printers and paper, and then—bam!—digitally deposit imaginary money.

3. The Catch: While the bank might initially show an extra $20,000 in your account, remember, the check is as fake as a three-dollar bill. When it bounces, you're not just back to your original balance—you’re staring down the barrel of a hefty overdraft, especially if the scammer convinced you to hand over your half of the "funds."

They commit fraud using your account. The scammer keeps 50%, and you keep 50% of the money, but you can be charged with fraud.

Bank Loading Scam Examples:

Bank loading can take many different forms; here are some other examples

• Bank Account Break-ins: Like digital ninjas, scammers sneak into legit bank accounts using stolen credentials or by exploiting security loopholes. Once in, they transfer dirty money in, making it appear clean and cozy.

• Credit/Debit Card Capers: These tricksters snatch credit or debit card details through data breaches or theft. Next thing you know, they’re loading up the cards with ill-gotten gains from their latest shenanigans.

• Laundering Loot: This scam is sometimes about making dirty money disappear. The cash flows from dubious deeds like drug deals or cyber heists and gets a clean slate when passed through unsuspecting accounts.

• Mule Recruitment Drive: Sometimes, fraudsters need a helping hand, so they recruit 'money mules' under false pretenses. These mules receive the loaded funds and transfer them as directed, often before they realize they’re part of a crime scene.

Every criminal says the sniff test is one of the best ways to prevent revenue loss. When something seems off, it probably is.

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