A lawyer shared a story of a client losing a six-figure sum via a scam, just a day before they were due to make a deposit for a house purchase. The fraudsters posed as the victim’s bank.
Significant threats exist in today's interconnected world, particularly in banking and telecom sectors where frauds have become more sophisticated. Understanding threats is crucial to safeguarding personal and financial information – once a fraudster has your driver’s licence, date of birth and address, they have most of what they need. Be aware of these identity theft schemes:
Phishing Attacks:
Fraudsters pose as legitimate entities, such as banks or government agencies, luring victims to divulge sensitive information like usernames, passwords, and credit card details. A phishing email purportedly from a bank might prompt recipients to click on a link to verify their account information. Once on the fake website, victims unknowingly provide their credentials, which are then harvested for unauthorised bank transactions or identity theft and sold.
Account Takeover:
Initiated through phishing or malware-infected websites, fraudsters access a victim's bank account by stealing their login credentials or personal information. Once inside, they conduct unauthorised transactions, change contact information, passwords, apply for loans or credit cards in the victim's name. The aftermath of an account takeover can be financially and emotionally devastating for the victim, who may struggle to reclaim their stolen funds and restore their compromised identity and credit rating.
Sim Theft:
Targeting mobile phone accounts, fraudsters obtain enough information to pose as the account holder with mobile service providers, to replace or change a sim card. By exploiting less rigorous protocols of customer service representatives, fraudsters gain control over a victim’s phone, enabling them to intercept authentication codes and reset passwords – then pass first security checks with institutions, using the phone number as a form of ID.
Fake ID:
Printing fake drivers’ licences, fraudsters take these to banks and other institutions to obtain accounts, cards and credit, they are in effect monetising your identity cards. Be cautious handing over your driver’s licence, what happens to it, how do they store it securely, you should not put your address on your driver’s licence either, at that point a fraudster has everything.
ATM Skimming:
This involves installing devices, ‘skimmers', on ATM machines to capture magnetic stripe data from debit or credit cards inserted by customers. Skimming devices are often accompanied by pinhole cameras or keypad overlays to record victims' PIN numbers. Once fraudsters obtain the card data and PINs, they create counterfeit cards, initiate unauthorised transactions draining victims' bank accounts, or sell the data to organised groups or individuals.
Account Opening Fraud:
Fraudsters open bank accounts, online store or loan accounts by using stolen or fabricated identities to commit financial crimes and monetising your identity. This form of identity theft uses counterfeit documents (fake IDs, forged utility bills), to pass an institution’s identity verification process. Once accounts are established, fraudsters engage in various illicit activities, obtaining credit, money laundering or receiving funds from criminal enterprises.
Business Email Compromise (BEC):
Also known as email spoofing, BEC targets businesses and financial institutions by impersonating high-ranking executives or trusted vendors through email communication. In a typical BEC scam, fraudsters manipulate employees into transferring funds or divulging sensitive information by posing as company executives requesting urgent wire transfers or confidential financial data. BEC scams plague organisations worldwide, resulting in substantial financial losses and reputational damage.
Unexpected Money Scams:
These email scams promise rewards of large sums of money requiring upfront payments for release. They may recruit individuals as ‘mules' to receive and forward stolen funds under false pretences. They may deposit a small sum in a victim’s bank account, then pose as a trusted organisation like a bank to request reversals of payments – exploiting the victim’s trust, resulting in financial losses.
Investment Scams:
Aimed to deceive individuals into investing in fake business opportunities or financial products, these scams promise high returns and low risk. Scammers impersonate real businesses through elaborate schemes involving Google ads, slick websites, or detailed financial presentations. Victims may receive glossy investment prospectuses or engage in in-depth phone conversations with scammers posing as financial advisors, leading to financial losses.
Cyber-attacks and Breaches:
Cybercriminal gangs exploit security loopholes in widely used cloud platforms and enterprise software. These criminals create fake websites resembling legitimate ones, resulting in millions lost to scams annually.
What can you do?
Treat all communications and requests with suspicion, don’t divulge your personal information unless you are sure you know who is getting it and why, and that they can be trusted.
Stay alert – Stay on top of the warning signs of scams, and if you’re not sure, check by contacting someone you trust or the organisation that the message claims to be from before making payments or giving any personal details.
Be proactive – Stay safer online by using unique, long passwords and change these regularly – and never give out your passwords or PIN to anyone. If your ID, cards or wallet are lost or stolen, act immediately. Suspend your cards. Limit large withdrawals.
Report – If you suspect any scam-related activity, report it immediately.
In conclusion, this is not a catch all. Identity theft, bank scams and fraud pose pervasive threats in the digital age, by constantly changing and exploiting vulnerabilities in technology and human behaviour for financial gain. It's imperative for individuals and financial institutions to adopt proactive security measures and remain vigilant to mitigate these risks effectively. Collaboration and awareness are key in the ongoing battle against identity theft in the banking sector. Remember: Protect Yourself, Protect Your Devices.
JOHNSTON ASSOCIATES, Level 1, One Jervois Road, Ponsonby, T: 09 361 6701, www.johnstonassociates.co.nz
#ponsonbynews #iloveponsonby #loveponsonby #ponsonby #auckland #aucklandshippestrip #onlyponsonby #ponsonbyroad #Greylynn #freemansbay #westmere #ponsonby #hernebay #stmarysbay #archhill #coxsbay @followers #followers @everyone #everyone #waitematalocalboard @highlight #JohnstonAssociates #IdentityTheft #BankScamsandFraud
Published: May 2024