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.
For security alerts and expert tips, sign up for KURT’s newsletter, The Cyberguy Report.
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.
How to remove your personal information from the internet
Woman receiving a text message on her mobile phone. (Kurt “Cyberguy” Knutson)
Beware of new Android malware that will empty your bank account and completely wipe your device
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:
Trust Abuse: 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 perception that their request is legitimate. Kevin’s wife thought she was talking to the bank, but in fact she was talking to a thief who cleverly mimicked banking procedures.
Click here to read more US news
Bypassing security measures: Once a scammer has 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, transfer funds, and set up ACH transfers.
Easy to guess and find: 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 his security questions, which had been legitimately set when he created his account.
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)
World’s largest database of stolen passwords uploaded to crime forum
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 your text notifications. Use your bank’s official app or website to verify any text notifications you receive. This will ensure that you are dealing with a legitimate source and not a scammer. If in doubt, contact your 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 verify any text notifications you receive. This will ensure that you are speaking to a legitimate representative.
2. Never share your secret answer: Never give answers to your security questions to anyone you didn’t call, 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 phone number listed on the back of your debit card or get the bank’s number from the bank’s official website. If you are thinking of Google-searching the phone number displayed on your mobile phone screen, think twice as scammers can easily spoof a legitimate bank phone number.
4. Turn on notifications in your banking app. Most banks will notify you when an alert is turned off or when your information changes.
5. Regular Account Monitoring: Get into the habit of checking your bank account daily. Spotting any suspicious activity early can help prevent big losses.
6. Report suspicious activity: If you suspect fraud, report it immediately to your bank and local authorities. Quick action can help mitigate damage.
Click here to get FOX Business on the go
7. Enable Two-Factor Authentication (2FA). Whenever possible, 2FA It adds an extra layer of security by requiring bank accounts and other sensitive online accounts to have a second form of verification, such as a code sent to your mobile phone.
8. Use strong, unique passwords: Make sure your passwords are strong and different for each account, and avoid using information that can be easily guessed, such as your date of birth or common words. Password Manager Manage your passwords securely.
9. Be careful with public Wi-Fi: Do not access your bank account or make any sensitive transactions for extended periods of time. Public Wi-Fi Networks. These networks are less secure and more susceptible to hacking.
10. Update your software regularly: Keep your devices and apps up to date Apply the latest security patches, which protect you from vulnerabilities that cybercriminals may exploit.
11. Deploy powerful antivirus software: The best way to protect yourself from malicious links that could install malware and access your personal information is to have antivirus software installed on all your devices. This protection will also alert you to phishing emails and ransomware scams, keeping your personal information and digital assets safe. We’ve handpicked the winners of 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 been a reassuring method for me and has proven to be the most effective way to wipe personal data from the internet. Limiting the information available reduces the risk of scammers cross-referencing data from a breach with information they find on the dark web, making it harder for them to target you. Check out my recommendations for data deletion services here.
How to protect your credit and bank cards from hacking
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.
Click here to get the FOX News app
Have you ever been the victim of a scam? What did you learn from the experience? Email us. Cyberguy.com/Contact Us
If you want to receive more of my tech tips and security alerts, subscribe to the free CyberGuy Report newsletter at the link below. Cyberguy.com/Newsletter
Have a question for Kurt or tell us the story you’d like to see featured?.
Follow Kurt on his social channels:
Answers to the CyberGuy’s most frequently asked questions:
New Arrivals from Cart:
Copyright 2024 CyberGuy.com. All Rights Reserved.
