Safety of the money in your bank account depends on you to a large degree. The way you use your bankcard and your online banking applications determines how secure your money is going to be. Below we discuss some popular fraud schemes that can be used to steal money from your bank account. If you take the necessary precautions, you can avoid losing money.
Internet fraud based on trust
This is probably the most widespread fraud scheme that can take one of the following forms:
- If you place a classified ad hoping to sell a certain item and provide your telephone number, a fraudster may call you on the phone and say that he/ she is interested in purchasing the item. After that, the ‘buyer’ offers to pay for the item in advance by transferring money to your bankcard. To make the transfer possible, the fraudster asks you to give him/ her your card number, its validity term, the CVC code, and the code in the SMS that is sent to your telephone. Needless to say, having this information, the fraudster is not going to send you the money. Instead, he or she is going to withdraw money from your card account. All of it.
- The fraudster calls you and says that he or she works for the security department of your bank. Then he/ she tells you that some money has been withdrawn from your card account ‘by mistake’. To solve the issue, he/ she needs your card data and the password to your mobile banking application. Alternatively, the fraudster may say that there has been a failure in the bank’s security system and your card needs to be temporarily blocked ‘to save you from unauthorized money withdrawals’. Please note that fraudsters use telephone number substitution technologies that make the number on your cell phone screen look as if it were one the numbers that the bank uses.
- The fraudster may call you and say that there has been ‘an incident’ with your bankcard. After that, he or she will ask you to install some software that will ‘protect your money’. The software may turn out to be a remote access application similar to TeamViewer, AnyDesk, and the like. After the software is installed in your computer, the fraudster can gain access to all your computer operations including use of online baking applications. In this way, he/ she can find out your bank account details and steal your money.
Ghost bank accounts
Surprisingly, banks can also set up fraudulent schemes to cheat on their own clients. Wells Fargo, one of the largest American banks, was caught using one of such schemes in 2016. The bank managers opened several million ghost bank accounts for their clients without their consent. They did so to be able to report great sales results to their superiors and thus qualify for monetary bonuses. Eventually, they were found out and the bank had to pay more than a hundred million dollars in fines.
Peeking over your shoulder
A fraudster can peek at your PIN code as you are entering it when using an ATM. Sometimes, special optical instruments can be used for this purpose. If later the fraudster succeeds at stealing your card, he/ she will be able to withdraw money from your account.
False ATMs
Fraudsters have been using the increasing number of ATMs all around the world to their advantage. They build false ATMs and put them in busy trade centers and similar lively places. When you insert your card in such an ATM and enter the PIN code, the screen usually says that the machine has no cash or it is out of order. In reality, however, the ATM has copied the card number and the PIN code and passed it to fraudsters.
Skimming
Fraudsters can also attach a scanning device to a working ATM or a POS terminal. When you use the ATM or POS terminal, the device reads the information on the magnetic strip on your bankcard and records it together with the PIN code that you enter. In this way, the fraudsters acquire the information that they need for making a false card. Thus, your card is going to have a ‘clone’ with the same bank account details and somebody else is going to draw on your bank account.
Phishing
You may receive an SMS or an email message informing you that your card has been blocked or that a certain amount has been ‘accidentally’ added to your account or something like that. To solve the problem, you are asked to call back or visit a website and provide your bankcard details. Again, the fraudsters are not going to solve any problem (because there is none in reality) but they are going to use your bank account details in their interests.
Vishing
Vishing is a subtype of phishing. You may receive a prerecorded phone call that informs you that somebody else is using your bankcard right now. You are advised to take the following steps:
- Dial a certain telephone number;
- The person who picks up the phone says he/ she works for the bank and he/ she needs to carry out the client identification procedures, that is, find out your card number and other information;
- These ‘client identification procedures’ give the fraudsters enough information to use your account details in online banking applications;
- The information may also be sufficient for making a fake bankcard with your account details.
Pharming
Pharming is the procedure of redirecting website users to fictitious websites. When you visit one of such websites, malware is installed in your computer that gives fraudsters remote access to it. Now they only have to wait until you log onto your bank’s website and enter all the numbers, the codes, and the passwords. When you do, the fraudsters will have full access to your bank account.
You may also receive an SMS informing you that you have been subscribed to some sort of paid service. The text will suggest that you should visit a certain website if you would like to stop paying for the service that you do not need. When you visit the website, you activate a Trojan horse program that gives the fraudsters access to your computer. Sometimes this fraud scheme is referred to as ‘Smishing’ (a derivative of SMS and phishing).
How can you protect the money in your bank account?
- DO NOT share your PIN code and your passwords with anybody!
- DO NOT follow any instructions unless you can be 100% sure that they are given by an authorized person! (And you cannot be 100% sure of that if you receive a telephone call or an email.)
- If anybody calls you and asks you about your bankcard or bank account details, HANG UP IMMEDIATELY and call your bank using the number printed on the back of your card.
If you follow these simple rules, the money in your bank account should be safe. However, you have to watch out for fraudsters and always be on alert anyway.
