Scams Every Bank Customer Should Know About
Making money is not easy. It’s even harder if you have to work 5am to 9pm (though your employment letter said 9am to 5pm). It’s therefore devastating when you receive an alert saying you just withdrew some money from an Automated Teller Machine thousands of miles away from your place of abode.
This might have happened while you sat in your office with your ATM card carefully nested in your pocket. It was difficult to prove to the bank it wasn’t you since all the details were supplied to the banking payment system tallied with yours.
This was the story that prevailed when magnetic swipe cards became compromised and banking customers were being scammed.
Though the percentage of scams were reduced by 85 per cent through the introduction of the token-text authentication system and chip-pin cards, scammers have new systems to ensure you either make the payments or willingly ‘share’ your banking details.
With new technology comes a new set of crooks who seek to exploit the system as they are more knowledgeable than the average ATM card holder.
With technology getting more and more advanced, banks are outdoing each other in adding banking services that can be accessed across various platforms and applications.
Although banks are investing heavily in technology and cyber-security in order to beat the best of hackers, they also have to tackle customer ignorance. As with all types of frauds, the best way bank customers can counter this is to have more information and be fully aware of the possible dangers that lurk in cyberspace.
Here are the most common online banking scams that consumers should be aware of:
Advanced text fraud
This is one of the crude form of the advanced fee fraud. With the emergence of text messaging systems which allow users to send bulk SMS while customising the name of the sender, there have been reported cases of advanced text fraud. In this case, customers who base their business transactions on receiving alerts systems (email or text) from their banks can get duped easily.
Akin (not real name) is a car dealer who told a customer to go on and make payment at the bank while he waited patiently for a text message. No sooner had he received the text message from the ‘bank’ than he released the car only to realize later that the text message from the ‘bank’ was fake. He had clearly fallen victim of advanced text fraud.
While most bulk texting gateways are already taking precautions to vet messages before they go out, it is important for everyone to be suspicious enough to identify threats. This is especially so when you are conducting transactions that may expose you to risk, confirm payment independently from your account officer, your bank balance on your ATM, online banking channel or through systems created by the bank to help you confirm your transactions.
Stolen chips, cheap passwords
With the emergence of the chip and pin passwords, frauds need to have both your ATM and password to get anything done. Customers make this easy and simple by using obvious passwords like your date of birth. If your purse or bag gets stolen, chances are that your ATM will be close to your ID card and fraudsters looking for information like this might try that to see if they are lucky.
The best way to prevent this is to use more secure passwords. In case you lose your card, don’t wait till you begin to receive alerts, report to the bank immediately.
Phishing – Some ‘fake’ banks need your password to upgrade
Sounds like fishing, but it is actually used when an online scammer ‘fishes’ on the Internet for data from gullible users. While pretending to come from an original bank, they send out emails designed to lure you into revealing your banking/personal password, token pins or text codes which is then used to access your bank accounts online. Upgrading software and banking applications are not simple tasks; it can shut down entire banking operations so banks do not embark on it as often as those ‘we are upgrading’ emails suggest. While so many people know about this already, the fact that it is still being used means it is working for them. You receive an email purportedly from your bank requesting that you update your account information for a reason that sounds official. Click on the link directs you to the bank’s website but instead directs you to a cloned site which receives your data.
It doesn’t matter the phrase; “Verify your account”, “If you don’t respond within 24 hours, your account will be deleted”, “Click the link below to update your account information”, “Please provide your username and password”. No bank will need your password details to complete upgrade. Ignore any email requesting such. Avoid clicking on and avoid using public computers for personal banking transactions.
Withdraw at gun point
Since some are not that tech-savvy, the next thing to do is to waylay customers trying to use ATMs. This especially occurs at night when human traffic is low and risk of them being caught is very low. Another trend within the Nigerian space includes robbers who force their victims to go to an ATM to withdraw cash.
Use only bank ATM machines in well-lit, high-traffic areas. ATMs inside busy supermarkets are considered safer. Don’t use ATM machines that are remote or hidden, such as being located behind buildings, behind pillars, walls, or away from public view. Beware of obvious hiding places like shrubbery or overgrown trees.
Avoid ATMs where people are lurking around. Since you cannot return the money to the ATM, don’t waste time counting money at night.
Report to your bank’s watch-list
Most times when you receive those emails, most conscious customers already know this and they avoid trouble. However others still fall for the scam because they do not report it. When you spot a scam or phishing, report it to the bank immediately. This allows the bank to take the necessary actions that get the website blacklisted, banned or taken down.
All across the world the battle to secure online and technology transactions is becoming more complex and technical. We banking customers can also improve the banking system by taking the necessary precautions that makes your financial transactions secure.
This might have happened while you sat in your office with your ATM card carefully nested in your pocket. It was difficult to prove to the bank it wasn’t you since all the details were supplied to the banking payment system tallied with yours.
This was the story that prevailed when magnetic swipe cards became compromised and banking customers were being scammed.
Though the percentage of scams were reduced by 85 per cent through the introduction of the token-text authentication system and chip-pin cards, scammers have new systems to ensure you either make the payments or willingly ‘share’ your banking details.
With new technology comes a new set of crooks who seek to exploit the system as they are more knowledgeable than the average ATM card holder.
With technology getting more and more advanced, banks are outdoing each other in adding banking services that can be accessed across various platforms and applications.
Although banks are investing heavily in technology and cyber-security in order to beat the best of hackers, they also have to tackle customer ignorance. As with all types of frauds, the best way bank customers can counter this is to have more information and be fully aware of the possible dangers that lurk in cyberspace.
Here are the most common online banking scams that consumers should be aware of:
Advanced text fraud
This is one of the crude form of the advanced fee fraud. With the emergence of text messaging systems which allow users to send bulk SMS while customising the name of the sender, there have been reported cases of advanced text fraud. In this case, customers who base their business transactions on receiving alerts systems (email or text) from their banks can get duped easily.
Akin (not real name) is a car dealer who told a customer to go on and make payment at the bank while he waited patiently for a text message. No sooner had he received the text message from the ‘bank’ than he released the car only to realize later that the text message from the ‘bank’ was fake. He had clearly fallen victim of advanced text fraud.
While most bulk texting gateways are already taking precautions to vet messages before they go out, it is important for everyone to be suspicious enough to identify threats. This is especially so when you are conducting transactions that may expose you to risk, confirm payment independently from your account officer, your bank balance on your ATM, online banking channel or through systems created by the bank to help you confirm your transactions.
Stolen chips, cheap passwords
With the emergence of the chip and pin passwords, frauds need to have both your ATM and password to get anything done. Customers make this easy and simple by using obvious passwords like your date of birth. If your purse or bag gets stolen, chances are that your ATM will be close to your ID card and fraudsters looking for information like this might try that to see if they are lucky.
The best way to prevent this is to use more secure passwords. In case you lose your card, don’t wait till you begin to receive alerts, report to the bank immediately.
Phishing – Some ‘fake’ banks need your password to upgrade
Sounds like fishing, but it is actually used when an online scammer ‘fishes’ on the Internet for data from gullible users. While pretending to come from an original bank, they send out emails designed to lure you into revealing your banking/personal password, token pins or text codes which is then used to access your bank accounts online. Upgrading software and banking applications are not simple tasks; it can shut down entire banking operations so banks do not embark on it as often as those ‘we are upgrading’ emails suggest. While so many people know about this already, the fact that it is still being used means it is working for them. You receive an email purportedly from your bank requesting that you update your account information for a reason that sounds official. Click on the link directs you to the bank’s website but instead directs you to a cloned site which receives your data.
It doesn’t matter the phrase; “Verify your account”, “If you don’t respond within 24 hours, your account will be deleted”, “Click the link below to update your account information”, “Please provide your username and password”. No bank will need your password details to complete upgrade. Ignore any email requesting such. Avoid clicking on and avoid using public computers for personal banking transactions.
Withdraw at gun point
Since some are not that tech-savvy, the next thing to do is to waylay customers trying to use ATMs. This especially occurs at night when human traffic is low and risk of them being caught is very low. Another trend within the Nigerian space includes robbers who force their victims to go to an ATM to withdraw cash.
Use only bank ATM machines in well-lit, high-traffic areas. ATMs inside busy supermarkets are considered safer. Don’t use ATM machines that are remote or hidden, such as being located behind buildings, behind pillars, walls, or away from public view. Beware of obvious hiding places like shrubbery or overgrown trees.
Avoid ATMs where people are lurking around. Since you cannot return the money to the ATM, don’t waste time counting money at night.
Report to your bank’s watch-list
Most times when you receive those emails, most conscious customers already know this and they avoid trouble. However others still fall for the scam because they do not report it. When you spot a scam or phishing, report it to the bank immediately. This allows the bank to take the necessary actions that get the website blacklisted, banned or taken down.
All across the world the battle to secure online and technology transactions is becoming more complex and technical. We banking customers can also improve the banking system by taking the necessary precautions that makes your financial transactions secure.
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