The Fake Bank Trap: When High-Yield Accounts Aren’t Real

High-yield savings accounts are great if you’re trying to build an emergency fund or keep savings separate from checking. They allow you to earn at least some growth while keeping that money accessible in a pinch.

But as more people look to stash their money in online banks, scammers are moving fast to meet them there. Over the past year, a growing number of fake banks – or cloned versions of real ones – have been offering “too good to be true” savings accounts, promising 6 to 10 percent interest and no fees.

Except they’re not real. And the money disappears.

What These Scams Look Like

Scammers are no longer sending sketchy emails from foreign princes. They’re building full websites, designing fake apps, and even buying social media ads to appear legitimate. These fake banks look polished. They list made-up FDIC insurance numbers. Some even pull quotes from financial blogs or media outlets they were never actually featured in.

Here’s how it typically works:

• You see an ad or link for a “new high-yield savings account”
• The site mimics the language of known fintechs or online banks
• You’re offered an above-market rate – say, 7% interest, guaranteed
• The application asks for your full personal information, and then routes you to fund the account via ACH or debit transfer
• After the transfer, the site goes quiet – and customer service, if it exists, never replies

At that point, the money’s gone.

In late 2023, the FDIC warned consumers about the rise of fake banks and fraudulent financial platforms designed to mimic legitimate institutions. These scams often involve lookalike websites, misuse of the FDIC name or logo, and false claims of deposit insurance. In some cases, scammers advertised high-yield savings accounts with professional-looking branding to gain trust, only for the money to disappear once deposited.

How to Protect Yourself (Without Paranoia)

The good news? You don’t need to memorize every scam tactic. You just need a few solid habits:

1. Check the FDIC database. Go to the FDIC’s BankFind tool and search the name of the bank or app before giving them your money. If they’re not listed, walk away.
2. Be skeptical of sky-high rates. If someone’s offering a never seen before sky high rate with no risk, it’s a red flag.
3. Look for verified media coverage. Search the bank’s name. If it’s real, other sites are talking about it. If it’s fake, you’ll either find nothing – or scam warnings.
4. Never rush to transfer money. If an ad or email pressures you with phrases like “offer expires today” or “first 500 accounts only,” take a step back. Real banks don’t operate like flash sales.

There are plenty of great online banks out there offering strong, secure savings options. But as with any trend, scammers follow the attention. If you’re building savings, protect it – not just from inflation, but from fraud.