Fraud and Scam Red Flags to Watch Out For

February 2026

A new year is a time to reset habits and set goals, but it is also a busy season for scammers. Fraud attempts often rise in January as people update passwords, review finances, file taxes, and communicate more frequently with banks and service providers. At Waukesha State Bank, keeping your accounts safe is always a priority, and awareness is one of the most effective tools you have.

Understanding common fraud tactics and knowing what red flags to watch for can help you start 2026 with confidence. With a few practical steps and the right safeguards in place, you can reduce your risk and act quickly if something does not look right.

If you would like help reviewing your finances or setting up digital tools, you can schedule an appointment with a Relationship Banker.

Why Fraud Attempts Increase at the Start of the Year

Scammers pay close attention to timing. January presents opportunities because people are already expecting messages related to finances.

Increased Financial Activity

At the beginning of the year, many people are checking balances, adjusting budgets, setting up new accounts, or preparing for tax documents. Fraudsters take advantage of this by sending messages that appear to relate to routine banking or government activity.

A Sense of Urgency

Many scams rely on urgency to override common sense. Messages may claim your account is locked, a payment failed, or suspicious activity requires immediate action. Pressure is often the first warning sign.

Phishing: Messages Designed to Trick You

Phishing is one of the most common and effective fraud tactics.

What Phishing Looks Like

Phishing attempts often arrive by email or text and appear to come from a trusted source such as a bank, retailer, or delivery service. These messages may include links, attachments, or requests for personal information.

Common red flags include spelling errors, generic greetings, unexpected links, or requests for sensitive information such as passwords or verification codes.

How to Protect Yourself From Phishing

Never click on links or open attachments from unexpected messages. If a message claims to be from your bank, access your account by typing the website address directly into your browser or using your official mobile app.

When in doubt, pause and verify before taking action.

Spoofing: When Scammers Pretend to Be Someone You Trust

Spoofing occurs when fraudsters disguise their phone number, email address, or sender name.

Common Spoofing Scenarios

You may receive a phone call that appears to come from your bank’s phone number or an email that looks official at first glance. The goal is to gain your trust quickly and request information or payments.

Legitimate financial institutions will not ask for your full password, one-time passcodes, or sensitive personal details through unsolicited calls or messages.

What to Do If You Suspect Spoofing

If you receive a suspicious call or message, hang up or do not respond. Contact your bank using a verified phone number to confirm whether the communication was legitimate.

Identity Theft: Protecting Your Personal Information

Identity theft often begins quietly and can take time to detect.

How Identity Theft Happens

Stolen mail, compromised passwords, data breaches, or shared personal details on social media can all provide enough information for fraudsters to impersonate you. Once obtained, that information may be used to open accounts, apply for credit, or access existing financial relationships.

Steps to Reduce Your Risk

Use strong, unique passwords for financial accounts and update them regularly. Monitor statements and credit reports for unfamiliar activity. Shredding sensitive documents and limiting what you share publicly can also reduce exposure.

Use Banking Tools to Strengthen Your Security

Technology can help you stay one step ahead of fraud.

Set Up Account Alerts

Account alerts notify you of transactions, balance changes, and unusual activity. These alerts can help you identify issues early and respond quickly if something does not look right.

Review Activity Regularly

Checking your accounts frequently, even briefly, helps you spot unfamiliar transactions sooner. Early detection is key to minimizing potential damage.

Know Who to Contact

If you ever notice suspicious activity, contacting your bank right away allows action to be taken promptly to protect your accounts.

Key Takeaways

• Fraudsters often increase their activity at the start of the year, taking advantage of resolutions, tax season, and account updates.
• Phishing and spoofing scams are designed to look urgent and legitimate, but they rely on pressure and fear.
• Identity theft can start with small pieces of information and escalate quickly if left unchecked.
• Account alerts and online banking tools can help you catch suspicious activity early.
• A Relationship Banker can help you review security features and take proactive steps to protect your accounts.