Due to the government-imposed lockdown and the prevalent use of online banking channels, cybercriminals are on the loose again. They are becoming more clever and sophisticated in carrying out their evil schemes.
From an email that looks like it came from your legitimate bank or a phone call from a fake call center agent threatening you to block your credit card if you will not respond promptly for account verification, these online crimes are generally hard to monitor and prosecute the culprit.
But, how does bank scam happen?
There is only one requirement for bank scam to happen – your banking credentials. These are your username, password, account numbers, and One-Time Password (OTP).
How about, if the scammer has your account number only?
There is nothing that the scammer can do with just the account number.
The fraudster should have all your banking credentials for every successful scam to happen.
Then, the scammer can withdraw, transfer funds from your account or used up the credit limit of your credit card.
Knowing the nature of bank fraud and how scammers carry out their scheme, we avoid ourselves from losing our hard-earned money.
In this post, we will discuss the nature of bank frauds and how these are being done by criminals.
Nature of Bank Fraud
Card skimming is the illegal process of copying financial information from the magnetic strip of an ATM or credit card.
Bank scammers will create a fake card with your details on it. Then, they will withdraw or make purchases using the cloned card.
Sometimes, scammers go to the extent of copying your personal details and account numbers and borrow money or take out loans in your name.
Phishing is the unauthorized collection of financial details by sending legitimate-looking emails or the creation of replicas of valid web pages, which will be used to steal money from the victim’s account.
Common Bank Fraud
Recently, there are many reported cases of bank fraud on the internet. I can relate how it feels to experience having your card details compromised.
So, before we become victims of bank fraud, let us know how these fraudsters conduct their criminal intent to their potential target.
There are three ways they conduct their business, thru emails, call or text message, and the most recent one – SIM swap.
The purpose of the scammer is to get your personal data. Then, they can steal money from your account.
1. Fake Email
The scammer will send an email requesting the victim to verify his account through a link that opens up to a fake bank website.
The reasons for the account verification are varied – suspicious activity, confirmation of registered mobile number, or transaction alerts, etc. Usually, the tone of the email is threatening and urgent.
2. Fake Call/Text Message
The scammer sends a text message or calls the target, to trick him into believing that someone else used his card to purchase something expensive.
Then, he will ask for your credit card number, the CCV found at the back of the card, the expiry of the card, and the One-Time-Password (OTP).
There are other variations of the nature of the call, but the aim is to get the victim’s account credentials.
3. SIM Swap
The fraudsters will disguise as telco agents offering SIM Card upgrades. They will take the victim’s SIM card which they will use to access his online banking account to withdraw or purchase from the victim’s account.
Our money in the bank may not be safe anymore. Many scams take place over the internet, making them hard to trace and prosecute.
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This is further aggravated by the Data Privacy Act, which prohibits institutions to divulge account information without the necessary court order, making it hard for the concerned parties to get the data needed for an investigation.
We need to be wary of people asking us for our personal and financial information. Fraudsters are everywhere and they are just waiting for the right timing to conduct their modus operandi. We do not want to be the next target.
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