I frequently receive text alerts from my bank about possible fraudulent transactions.
These notifications are meant to protect us, but they can sometimes be misused by sophisticated thieves.
Here’s a real-life example shared by Kevin from Dandridge, Tennessee, who wanted to let others know about these nasty schemes so they can protect themselves from unscrupulous scammers.
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Couple receiving text message on smartphone. (Kurt “Cyberguy” Knutson)
Incident
Kevin shared a troubling experience where his wife received a text message from their debit card bank questioning a possible fraudulent charge. This was not uncommon, as they had received similar notices before and had to replace the card. His wife replied “No,” indicating that the transaction was not hers.
Soon after, she received a call from what she thought was her bank, but it was actually from a criminal cleverly posing as a bank representative who didn’t ask for her account number or password, instead demanding the answers to the “security questions” that had legitimately been set up when she opened her account.
Once the criminals had this information, they stopped the notifications, moved funds between accounts, set up ACH transfers, and withdrew most of the funds. Luckily, Kevin’s wife checked the account daily and noticed the suspicious activity right away.
They filed a report with the Internet Crime Complaint Center (IC3), a partner agency of the FBI and the National White Collar Crime Center that provides an avenue for individuals to report cybercrimes such as online fraud and identity theft. The bank’s fraud division was able to recover the funds from the receiving bank, but it was a time-consuming and stressful process.
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Woman receiving a text message on her mobile phone. (Kurt “Cyberguy” Knutson)
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Why do scammers ask for security questions?
Scammers often ask for answers to security questions because the answers may provide important information they need to access your account. Security questions are typically used as an extra layer of security for account recovery or verification processes. By obtaining this information, scammers can circumvent other security measures and gain unauthorized access to your account. Kevin’s experience makes it clear why scammers target security questions:
Exploiting your trust: Scammers often pose as legitimate representatives of a bank or other trusted institution. By asking for answers to security questions, they exploit your trust and the legitimacy of their requests. Kevin’s wife thought she was talking to the bank, but in fact she was talking to a thief who cleverly mimicked banking procedures.
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Bypassing security measures: Once scammers have the answers to your security questions, they can use them to reset your password or verify your identity, effectively circumventing other security measures in place to protect your account. This is exactly what happened to Kevin’s wife. The scammers used the answers to her security questions to stop notifications, move funds, and set up ACH transfers.
Easy to guess or discover: Unlike passwords, which are often complex and unique, answers to security questions can be easily guessed or discovered through social engineering. For example, common questions like “What was 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 scammer cleverly posed as a bank representative and asked for the answers to the security questions that had been legitimately set when his account was created.
Understanding why scammers ask security questions can help you be more cautious and protect your sensitive 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 strong reminder of the importance of staying vigilant and protecting your financial security.
Woman sending a text message on her mobile phone. (Kurt “Cyberguy” Knutson)
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Tips to protect yourself
Protecting yourself from scams requires vigilance and proactive measures. Here are 11 important tips to help you stay safe.
1. Check text notifications: Use your bank’s official app or website to check any text notifications you receive. This will ensure that you are dealing with a legitimate source and not a scammer. If in doubt, contact the bank directly using the phone number listed on their official website. If possible, it’s ideal to have a trusted contact at your bank who you can call to check any text notifications you receive. This will ensure that you are speaking to a legitimate representative.
2. Never give out answers to security questions: Never give out answers to security questions in a call that you did not initiate, even if the caller seems legitimate. If you contact your bank’s call center, these questions are required to verify your identity.
3. Hang up and call the bank’s number on the back of your debit card or get the bank’s number from the bank’s official website. If you’re thinking of Google-searching the phone number on your mobile phone screen, think twice as scammers can easily spoof a bank’s legitimate phone number.
4. Turn on notifications in your banking app. Most banks will notify you when an alert is turned off or your information changes.
5. Regularly Monitor Your Account: Make it a habit to check your bank accounts daily. Early detection of any suspicious activity can help prevent major losses.
6. Report suspicious activity: If you suspect fraudulent activity, report it immediately to your bank and local authorities. Quick action can help mitigate damage.
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7. Enable two-factor authentication (2FA): If possible, enable 2FA on your bank accounts and other sensitive online accounts, which adds an extra layer of security by requiring a second form of verification, such as a code sent to your mobile phone.
8. Use strong, unique passwords: Make sure your passwords for each of your accounts are strong and unique. Avoid using easily guessed information like birthdates or common words. Consider using a password manager to keep your passwords safe.
9. Be careful with public Wi-Fi: Don’t access your bank account or make any sensitive transactions over public Wi-Fi networks. These networks are less secure and more vulnerable to hacking.
10. Update your software regularly: Update your devices and apps with the latest security patches, which protect you from vulnerabilities that cybercriminals can exploit.
11. Deploy a strong antivirus software: The best way to protect yourself from malicious links that can install malware and access your personal information is to install antivirus software on all your devices. This protection will also alert you to phishing emails and ransomware scams, keeping your personal information and digital assets safe. Get our picks for the best antivirus protection of 2024 for Windows, Mac, Android, and iOS devices.
12. Remove your personal information from the Internet: To reduce your online presence, consider using a data removal service. While no service can guarantee that your data will be completely removed from the Internet, a data removal service is a really smart choice. It’s not cheap, but then again, neither is privacy. These services do all the work for you by actively monitoring and systematically removing your personal information from hundreds of websites.
This has proven to be the most effective way to wipe your personal data from the internet, as it gives me peace of mind. Limiting the information available reduces the risk that fraudsters will cross-reference data from a breach with information they find on the dark web, making it harder for them to target you. Check out my picks for data removal services here.
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Important points about the cart
Kevin’s story is a reminder of how vigilant we all need to be to protect our financial information. Thieves are becoming increasingly sophisticated, so it’s important to always stay one step ahead. By following the tips above, you can significantly reduce the risk of becoming a victim of these banking scams. Remember, the best defense against these types of scams is to stay informed and proactive.
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