Illustration by James Yang.

Attempting to regulate large companies is like trying to dam a large river. You may change the way the water flows, but you’re not going to stop that water from running. When banks were hit with new government regulations in 2010 limiting or eliminating fees they could charge their customers, they hit back. They complied with the rules, sure enough, but they shifted the fees to different transactions. At stake were billions of dollars per year—money the banks were counting on to keep them in the black.

The banks assumed consumers would not notice the new, tiny fees tucked away under vague, misleading headings in monthly statements. Or, if people did notice, banks counted on them to quietly suffer with the new fees, as they usually do.

Boy, were they wrong! The surprising (to them!) breaking point came last fall in the form of a proposal by Bank of America and others to charge $5 per month for the privilege of using their bank-provided debit cards. That fee was shelved after igniting a massive public outcry, the Occupy Wall Street movement, and a well-publicized exodus of big bank customers to the fee-friendlier waters of credit unions and smaller community banks.

But other fees quickly and more quietly took its place—and then some.

Now, lose that debit card and Bank of America charges $5 for a replacement (or $20 if you want rush delivery). Need a teller? Its eBanking enrollees have to pay $8.95 each month they use one to make a transaction. And most recently, the behemoth bank has been testing a menu of new checking account fees as high as $25 a month.

Bank of America is not alone. In 2009, before the Credit Card Accountability Responsibility and Disclosure (CARD) Act ended sudden interest-rate hikes and other money-making “gotchas” on credit card accounts (whose plastic is often issued by big banks), nearly all of the major players offered free checking.

Today, Citibank charges $20 a month unless you keep at least $15,000 in deposits—up from a $6,000 minimum balance in December. At Wells Fargo, expect a $15 monthly charge unless you have at least three accounts, maintain a $7,500 balance, or carry a Wells Fargo mortgage. No matter where you bank, it costs an average of nearly $8 a month in fees for basic (and longtime “free”) checking and ATM use, a 21 percent increase from six years ago. And a checking account isn’t the only service where fee has replaced “free.” Want a paper statement at month’s end or a photocopy of a past transaction? Making a deposit with your mobile phone or receiving one sent by wire transfer? Don’t have, in your bank’s view, enough account “activity” in a given month or need to cash in too many coins? There’s a fee for each at some banks, from 50 cents to a few bucks per use. Meanwhile, fees for longtime services have also increased: Cashier’s checks that used to cost $3 now cost up to four times as much, while money orders have doubled.

Outraged by it all? You’re in good company. In the 90 days following last November 5, the so-called Bank Transfer Day ignited by a 27-year-old art dealer’s Facebook post urging consumers to flee the ever-growing fees of big banks, nearly six million heeded the call—and moved their money to credit unions, which have lower or no fees for many of the same services. (As nonprofits, their tax-exempt status is one reason.) Guess what? There’s a fee for closing a recently opened account: $25 at CitiBank, PNC, U.S. Bank, and Sovereign, and some smaller financial institutions demand up to $50. All told, this nickel-and-diming amounts to some serious coin. Last year, $41 billion in fees alone was generated for America’s financial institutions—including $9.5 billion for “everyday” (and sometimes previously no-cost) services on customers who never overdraw their accounts.

Bigger banks, with higher operating costs, tend to be the biggest offenders. They have an average of 49 different fees, according to a study by Pew Charitable Trusts—ranging from $1.50 for a Xerox page to $175 to drill open a safe deposit box if keys are lost. Many are buried deep in government-mandated “disclosures” statements that now typically run 111 pages long, and are “full of legalese” not easily digested by many customers, says Pew’s Ardie Hollifield.

Overall, fees are fewer and less expensive at smaller banks and credit unions. “You’ll pay roughly one-third fewer fees at a credit union or smaller regional or community as opposed to a mega bank,” says Michael Moebs, CEO of Moebs Services Inc., which conducts independent research about banking services and fees for the financial industry’s federal regulators. “Bigger banks charge higher fees because they have to. There’s a huge cost in having 10,000 braches scattered across the U.S.”

Attack of the Killer Fees The Saturday Evening Post

Illustration by James Yang

But, as consumers finally learned to be wary of out-of-the-blue offers of untold riches, clever Nigerian letter scammers found ways to adapt. These days, instead of just masquerading as monarchs, some also pose as wealthy foreign businessmen on dating websites, asking cyber sweethearts for money for a plane ticket to meet them or help them out of a jam. Others claim to be bank lenders who “approved” two percent loans in a tough economy—after the requested application fee is paid. Still others have been known to pose as FBI director Robert Mueller or even Hillary Clinton, threatening arrest or offering political help to get a hidden inheritance (depending on the letter) unless upfront fees are paid to keep you out of jail or put you on Easy Street.

The very latest spin on all of the above scams has been to abandon email (too common, too much competing spam) in favor of the old-fashioned fax. As with email, faxes also can be sent en masse, with “predictive dialers” that call thousands of random phone numbers per day; if a fax tone is reached, the transmission goes through.

Sigh! Just goes to show you, some old scams never die. Instead (and often after well-publicized warnings), they just get tweaked. So be aware—and beware—of these creatively sinister newly rewritten rip-offs, hustles, and cons:

Telephone Scams

Misleading telephone offers date back almost to Edison. Here are the most common and their newest incarnations:

1. Fake Lotteries. The classic approach is to say “you have already won” a lottery that, in fact, you never entered. (One tip-off: they’ll ask you to pay advance fees­—never part of legitimate winnings—in order to claim your prize.) Or, they call to ask for donations for phony charities (often in the wake of recent disaster) or to promise government grants, low-cost medication, or a “free” vacation (any of which they claim requires your personal information and credit card).

The New Twist. Now fraudsters who work the phone try to get you to call them. For example, you receive a mailed letter for any of the reasons above, or stating there’s a UPS package that cannot be delivered, or that you’re entitled to cash from a special (secret) government program. You’ll call what seems like an American area code, but is actually the number for a Caribbean country. Dialing that number may cost as much as $5 or more per minute. So, the scam is actually two-pronged: As an operator tries to weasel your personal or financial information for identity theft, you’re simultaneously running up sky-high phone bills—thanks to a series of transfers, long holds, and lengthy small talk to keep you on the line as long as possible.

2. Distress Calls. Another classic phone scam is the call to targeted grandparents. Scammers pretend to be a grandchild in need of money after being arrested or hospitalized while vacationing abroad. They often try a generic greeting such as “Hi, Grandma, it’s me, your favorite grandson!” with hopes you will reply, “Billy? Is that you?”

The New Twist. Now, scammers are increasingly identifying themselves with the specific names of grandchildren—as in “Hi, Grandma, it’s Billy, and I need your help!” They get grandkids’ names from Internet searches on ancestry websites, Facebook accounts, online telephone directories, or reading recent obituaries of the target’s spouse.

3. Timeshare Resale Agents. Timeshares have a tendency to lose value. For years, distraught timeshare owners have been barraged with offers to help unload their unwanted units by self-described “resellers.” These sleazy profiteers promise they already have an interested buyer. All they need is their fee—upfront, please—to make the transaction occur. (Of course, the buyer is nothing more than a figment of the scammer’s imagination.)

The New Twist. Timeshare owners who’ve been swindled of upfront fees by phony resellers are now being re-contacted by so-called “fraud recovery” specialists. Guess what they’re being offered? Help with recouping that lost money—for another upfront fee, of course. Sometimes, it’s the same “resellers” now calling as “recovery” specialists, according to FBI reports. At best, pay a “recoverer” and you’ll get little more than forms or instructions to file complaints with investigating government watchdogs—all of which you can get for free at websites for the Federal Trade Commission or your state Attorney General. At worst, you get nothing but a smaller checking account.

Protect Yourself from Phone Scams. Hang up on any unsolicited phone call seeking personal or financial information. To avoid the phone bill trap, be cautious about calling back anyone with an area code you don’t immediately recognize. The most commonly used Caribbean area codes are 876, 809, or 284 (Jamaica, the Dominican Republic, and the British Virgin Islands). Also be wary of Canadian area codes, which are also three digits long.

Illustration by James Yang

Debit Card Scams

The invention of the ATM machine has not just made banking a greater convenience: It’s been a source of unlimited inspiration to the criminal mind. Top scams include:

1. ATM Skimming. Portable “skimming” devices—sold online for as little as $100—are placed over or behind the card slot to record information encoded in the magnetic strip of debit cards. With miniature spy cameras placed nearby to record PIN numbers used to make cash withdrawals, crooks are able to make duplicate cards and score fast cash from multiple machines. Without a PIN, they can make fraudulent online purchases.

The New Twist. Automated card machines at gas pumps have become an even more desirable target. Reason: With only a couple of manufacturers of gas pumps, a single key—in the hands of a scammer who gains employment at one gas station—can open pumps at multiple stations to install the sinister skimmers.

2. Fake “Out of Order” Signs. In bank vestibules with several ATMs, crooks place “Out of Service” signs on non-tampered ATMs in order to get customers to use a neighboring ATM on which they already placed a skimmer. Such was one recent case that resulted in $390,000 in skimmed withdrawals—until the Secret Service nabbed the culprits.

The New Twist. In a newer spin, no skimmer is even needed. Instead, crooks apply adhesive to certain buttons—“enter,” “cancel,” and “clear”—to prevent keypad-using consumers from completing their cash withdrawals after they’ve already inserted their card and typed PIN codes. As frustrated customers leave the machine to report the problem (tin foil is sometimes used to prevent cards from being returned), lie-in-wait crooks use a screwdriver to release the keys to complete the transaction—and get cash.

Protect Yourself from Debit Card Scams. Before using an ATM, wiggle the card slot—if it’s loose, avoid that machine. Also ensure a light emits from the card slot; if obscured, that’s a sign of tampering. Inspect keypads to ensure buttons aren’t stuck and always cover the keypad as you enter your PIN. At gas pumps and checkout counters, a credit card is safer—federal laws limit your liability against credit card fraud to no more than $50 (it varies with debit cards, depending on when the fraud is reported). When using a debit card to buy gas or anything else, it’s safer to choose the “credit” screen prompt instead of “debit” so you don’t have to enter your PIN. The purchase amount will still be deducted directly from your bank account, but it’s processed through a credit-card network—providing greater protection in the event of fraud.

Sneakiest New Scams The Saturday Evening Post

March is the time when vasectomies increase by 50 percent thanks to the much-anticipated opportunity for patients to “recover” in front of their TVs.

March is also the time when workplaces do some real number-crunching: on the expected loss in employee productivity (estimated at 8.4 million hours and $192 million last year); on money bet on office pools (a hefty chunk of the $2.5 billion in total sports wagering each year); and even on the number of times workers hit the so-called “Boss Button” (computer software that instantly hides live video of games with a phony business spreadsheet), which was activated more than 3.3 million times during the first four days of last year’s tournament.

But mostly, the NCAA Basketball Championship—better known as “March Madness” or “The Big Dance”—is a time that gives us something to cheer about beyond the game itself. If history and science hold true, no matter the outcome of the three-week tournament that begins in March, most of the millions who will follow its hard-court action will emerge as winners. “That’s because in the long run it’s really not the games that matter,” says Daniel Wann, Ph.D., a professor of psychology at Murray State University in Kentucky and author of Sports Fans: The Psychology and Social Impact of Spectators. “Being a fan gives us something to talk about, to share and bond with others. And for the vast majority of people, it’s psychologically healthier when you can increase social connections with others.”

After conducting some 200 studies over the past two decades, Wann, a leading researcher on “sports fandom,” finds consistent results: people who identify themselves as sports fans tend to have lower rates of depression and higher self-esteem than those who don’t. Blame it on our primal nature. “Sports fandom is really a tribal thing,” says Wann, a phenomenon that can help fulfill our psychological need to belong—providing similar benefits to the social support achieved through religious, professional, or other affiliations. “We’ve known for decades that social support—our tribal network—is largely responsible for keeping people mentally sound. We really do have a need to connect with others in some way.”

But when it comes to opportunities to connect, the Big Dance may have a foothold over other sporting events. “The beauty of March Madness is that it attracts people of all levels of sports fandom—and for different reasons,” says Edward Hirt, Ph.D., a professor of psychology at Indiana University who researches how fanship affects social identity.

Some watch, whether or not they usually follow sports, because they are alumni or have another previous affiliation to these “tribal networks”—the 60-plus participating college teams. Others connect on the spot, perhaps because it’s easier to form emotional allegiances with gutsy amateur athletes who compete with heart and soul (and while juggling mid-term exams) rather than for the paychecks collected by millionaire pros.

Also consider the unique nature of the tournament itself—a series of back-to-back games over the course of several weeks with little to no idle time in between during which a casual fan might lose interest. “I have not seen any empirical evidence to support that March Madness is necessarily better than other sports events” for promoting mood and mindset enhancements. “But theoretically I expect it could be,” says Wann.

“There are only a couple of events—the Super Bowl also comes to mind—that seem to transcend typical fandom into being akin to a national holiday … a reason for people to get together. But with the Super Bowl, everything leads to one game—and most of the time it’s an anticlimatic one that’s over by half-time.”

TV sports as therapy? Passionate fans tend to have lower rates of depression and higher self-esteem than the rest of us. Illustrations by Kagan Mcleod.

With March Madness, however, Wann notes, “there’s a longer, more drawn out event that provides more opportunities to engage in social opportunities and connections. And bonds tend to be stronger with a longer passage of time.”

Do the math: More games + more time = more opportunities to share for better bonding. “Because upsets are a normal occurrence, and you get runs by Cinderella teams knocking off the perennial favorites, there’s enough uncertainty and unpredictability in this tournament to get people excited—and keep them excited,” adds Hirt. “Early games affect later decisions; there’s a cascading effect, as opposed to a one-time pick … and that allows for the pride that comes with someone with no sports expertise being able to win the office pool.”

Maybe that’s why despite a short-term productivity loss many experts believe that March Madness actually benefits the workplace in the long term. Bonds formed in office pools and post-game water-cooler chatter build morale and inspire teamwork. At afterwork get-togethers in front of the tube, buddies can share chicken wings—and their emotions. “You have guys hugging each other, cursing at the ref, and bonding by sharing a sense of commonality,” says Hirt. “Where else can guys express their emotions like that?”

And those other relationships? Although studies show that two to four percent of marriages are negatively affected when one spouse is an ardent fan (think of the so-called “football widow”), sports fandom has a positive or neutral effect on nearly half of relationships, says Wann. “It gives many couples something to do together or allows one to have time to go off and do their own thing.”

Even if you watch in solitude, March Madness and other sporting events provide a diversion from the woes of everyday life—if only for a few hours. “Older people, especially when widowed or physically incapacitated, are more likely than others to relate to televised events,” says Stuart Fischoff, Ph.D., senior editor of the Journal of Media Psychology and a California State University, Los Angeles, professor emeritus of psychology. “Watching sports helps us get outside ourselves.”

With the thrill of victory, many fans experience bona fide joy—complete with hormonal and other physiological changes such as increased pulse and feelings of elation. And with defeat, the overwhelming majority may initially feel sadness and disappointment, but usually rebound within a day or two, studies show.

However, lest we present too rosy a picture, it must be said that sports fandom can also be a health hazard. In a 2008 study published in the New England Journal of Medicine, researchers found that on days when Germany’s soccer team played in the World Cup, cardiac emergencies more than tripled for German men and nearly doubled for women. Of course, European soccer fans are an extreme bunch; but even in the U.S., although visits to hospital emergency rooms tend to decrease during a much-anticipated sports game, there’s a higher-than-usual surge immediately after the game ends. The explanation: To see a game’s final outcome, some die-hard fans delay making that trip to the ER.

And, of course, no story about March Madness would be complete without mention of gambling. The odds of predicting all game winners are about 9.2 quintillion to one. Yet when it comes to sports betting, nothing turns John Q. Fan into Jimmy the Greek more than the NCAA tournament. Workplace camaraderie is one reason. But there’s another important factor.

Bragging rights.

With Super Bowl pools there’s just a series of boxes with different scores. If you’re lucky enough to pick the right one, you win. “But it’s a more complex task in filling out all the March Madness brackets, and a seductive pleasure in trying to predict the upsets,” says psychologist Edward Hirt.

Another reason why nearly twice as much money is wagered on March Madness than the Super Bowl: More than in other events, NCAA tournament fans simultaneously root for more than one team, triggering a greater likelihood of making multiple bets.

With other sports championships you have to wait a week or at least several days between games, but this sports soap opera—with its David versus Goliath battles—continues night and day, providing a stronger hook.

So let the games begin. Whatever the final outcome, odds are good that the overall advantage—for mind, body, and spirit—is definitely in your court.

Are Sports Fans Happier? The Saturday Evening Post