Recently, a few of our retired and elderly clients became victims of a new fraudulent scheme targeting their bank accounts.
Here's how this scam works: The client receives a phone call from an individual claiming to be employed by the bank's fraud department. The caller informs the client that there has been fraudulent activity on their accounts. The scammer possesses some of the client's personal information, enough to convince the client that they are legitimate bank representatives.
Once the client is convinced of the caller's authenticity, the scammer requests that the client transfer their funds into a so-called "SECURE" account. Of course, this is a trap designed to steal the client’s money.
To protect yourself from falling victim to this scam, here are some crucial points to keep in mind:
Stay Calm: Don’t panic. This isn't easy in the moment, but remaining composed is vital. Once the fraudster senses panic, they will try to exploit it further. Take a deep breath and think logically about the situation.
Do Not Share Personal Information: Never give out your personal information over the phone, especially if you did not initiate the call. If you suspect suspicious activity in your account, immediately cut off the conversation and contact your bank's fraud department for verification and assistance.
Your Bank Will Never Ask You to Transfer Funds to a 'Secure' Account: This is a major red flag. If you receive a call or message asking you to move your funds for security reasons, do not comply. Instead, log into your bank’s official app or website to review your account activity. You can temporarily block your account on the app if you believe there is a genuine issue.
Banks Do Not Request OTPs Over the Phone: If someone calls claiming to be from your bank and asks for a One-Time Password (OTP) or other authentication information, do not provide it. Genuine bank representatives will never ask for this information over the phone.
Use your virtual card: For online purchases, use your virtual card details instead of your physical card. A virtual card's CVV number changes after every transaction, which helps prevent unauthorized use of your card information. This means that even if someone gets your card details, they can't use them for other transactions.
Virtual cards also let you set spending limits and expiration dates, giving you more control and security when shopping online. By using virtual cards and checking that the websites you shop from are reputable, you can significantly reduce the risk of fraud and have a safer online shopping experience. For more information on this, please get in touch with your bank directly.
Stay informed and vigilant to protect yourself from these fraudulent schemes. Remember, your bank is always available to assist you if you suspect any suspicious activity. When you have a doubt, please contact your bank directly using the official contact information on their website or banking app.
Your safety and security are our top priorities. Stay alert, and do not fall victim to these scams.
You can also read more about general measures to outsmart cybercrime by reading our article here.
<Foundation Family Wealth is an Authorised Financial Services Provider>