Sneaky scammers steal money from bank accounts in sinister phone scam

We frequently receive text alerts from our banks regarding potential fraudulent transactions.

While these notifications are meant to protect us, they can sometimes be exploited by clever thieves.

Here is a real-life example shared by Kevin from Dandridge, Tennessee. He wanted others to learn about these underhanded tactics so they can protect themselves from heartless scammers.

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Kevin recounted a disturbing experience when his wife received a text message from the bank that processes their debit cards, questioning potential fraud. This was not unusual, as they had received similar notifications before and needed to replace their cards. She responded “NO,” indicating the transaction was not theirs.

Shortly afterward, she received a call from her bank. However, the call came from thieves who cleverly posed as bank representatives. They did not ask for account numbers or passwords, but instead asked for the answer to a “secret question” that was legally asked when setting up the account.

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Once the thieves had that information, they turned off notifications, transferred funds between accounts, set up an ACH transfer, and withdrew most of the funds. Fortunately, Kevin’s wife checked their accounts daily and quickly noticed the suspicious activity.

They filed a report with the Internet Crime Complaint Center (IC3) and a local police report. IC3 is a partnership between the FBI and the National White Collar Crime Center that provides individuals with a way to report cybercrimes, including online fraud and identity theft. The bank’s fraud department was able to recover the funds from the recipient’s bank. However, the experience was time-consuming and stressful.

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Scammers often ask for answers to secret questions because those answers can provide key information they need to access your accounts. Secret questions are typically used as an extra layer of security for account recovery or verification processes. By obtaining this information, scammers can bypass other security measures and gain unauthorized access to your accounts. Kevin’s experience illustrates why scammers target secret questions:

Exploiting trust: Fraudsters often pretend to be legitimate representatives of a bank or other trusted institution. By asking for an answer to a secret question, they take advantage of the trust and perceived credibility of the request. Kevin’s wife thought she was talking to the bank when in fact she was talking to thieves who cleverly imitated the bank’s procedures.

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Bypassing security measures: Once scammers have the answer to the secret question, they can use it to reset your password or verify your identity, effectively bypassing other security measures that are in place to protect your account. That’s exactly what happened to Kevin’s wife; scammers used the answer to the secret question to disable notifications, transfer funds, and set up an ACH transfer.

Easier to guess or find: Unlike passwords, which are often complex and unique, the answers to secret questions can sometimes be easily guessed or found through social engineering. For example, common questions like “What is your mother’s maiden name?” or “What was the name of your first pet?” can be discovered through social media or public records. In Kevin’s case, the scammers cleverly posed as bank representatives and asked for the answer to a secret question that was legally set when he set up the account.

Understanding why scammers ask for secret questions can help you be more cautious and protect your confidential information. Always be wary of unsolicited requests for personal information and verify the legitimacy of the request through official channels. Kevin’s story is a powerful reminder to stay vigilant and protect your financial security.

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Protecting yourself from fraud requires vigilance and proactive measures. Here are 11 essential tips to help you stay safe:

1. Verify text notifications: Use your bank’s official app or website to verify any text notifications you receive. This will ensure that you are communicating with a legitimate source and not a scammer. If in doubt, contact your bank directly using the phone number provided on their official website. If possible, it would be best to have a trusted contact at your bank that you can call to confirm any text notifications you receive. This will ensure that you are speaking to a legitimate representative.

2. Never share secret answers: Never give the answer to your secret question over the phone, even if the person you’re talking to seems trustworthy. Banks don’t usually ask for this information this way.

3. Google phone numbers: Before you respond to any calls or texts, search for the phone number on Google to verify its authenticity. This simple step can help you avoid becoming a victim of scams.

4. Regular account monitoring: Get into the habit of checking your bank accounts daily. Early detection of suspicious activity can prevent significant losses.

5. Report suspicious activity: If you suspect fraud, report it to your bank and local authorities immediately. Quick action can help mitigate the damage.

6. Enable two-factor authentication (2FA): If possible, turn it on 2FA on bank accounts and other sensitive online accounts. This adds an extra layer of security by requiring a second form of verification, such as a code sent to your phone.

7. Use strong, unique passwords: Make sure your passwords are strong and unique for each account. Avoid using easily guessable information, such as birthdays or common words. Consider using password manager to store your passwords safely.

8. Be careful when using public Wi-Fi: Avoid accessing your bank accounts and making confidential transactions public wifi networks. These networks may be less secure and more susceptible to hacking.

9. Update your software regularly: Keep your devices and apps up to date with the latest security patches. This helps protect against vulnerabilities that can be exploited by cybercriminals.

10. Have strong antivirus software: The best way to protect yourself from malicious links that install malware, potentially accessing your private information, is to install antivirus software on all your devices. This protection can also warn you about phishing emails and ransomware scams, protecting your personal information and digital assets. Check out my picks for the best antivirus protection in 2024 for Windows, Mac, Android, and iOS devices.

11. Delete your personal information from the Internet: To reduce your online presence, consider using a data deletion service. While no service can guarantee that your data will be completely removed from the internet, a data deletion service is a smart choice. They don’t come cheap—and neither does your privacy. These services do all the work for you, actively monitoring and systematically deleting your personal information from hundreds of websites.

This gives me peace of mind and has proven to be the most effective way to remove your personal information from the internet. By limiting the information available, you reduce the risk of fraudsters cross-referencing data from breaches with information they can find on the dark web, making it harder for them to track you down. Check out my top picks for data deletion services here.

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Kevin’s story reminds us how vigilant we need to be when protecting our financial information. Thieves are becoming increasingly sophisticated, and it’s crucial to stay one step ahead of them. By following the tips outlined above, you can significantly reduce your risk of becoming a victim of bank fraud. Remember, your best defense against these types of scams is to be informed and proactive.

Have you ever had a close encounter with fraud? What did you learn from the experience? Let us know by writing to us at Cyberguy.com/Contact

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