Warning: Bank Scams

[d.anders]

I've seen several recent YouTube videos warning people about the rise in bank scams. Thieves are using very sophisticated methods to pose as someone from your bank's fraud department. It is very difficult, especially for older people, to tell that they are being duped. They use exact language and logo material that your bank's fraud department would use. This morning, I just got an email from my bank. They are changing their rules around Zelle use due to the increased rate of scams. Apparently, part of one scam gets you to approve a wire transfer without your knowledge. A lot of people don't know that theft through wire transfer and Zelle is not bank protected. If you're not careful, thieves can easily wipe you out, and you're left holding the empty bag.

[+ nycman]

Which is why I only do business with my bank, in my local branch, in person. 

They know me. They know my spending habits. They know to call my lawyer and accountant immediately if I come in looking to make any transaction that’s out of the ordinary. When I recently went in to get a money order to buy a new car all the alarms went off. Yes, it took me two days, 5 phone calls, and several emails to get the money order. I’ve never been happier to have to wait and jump through so many hoops.

 

[Lotus-eater]

Yes, Zelle is pretty insecure and does not offer the same fraud protection as a credit card: “Zelle’s speed and convenience have made it a target for bad actors looking to trick unsuspecting consumers out of their hard-earned money,” said Senator Blumenthal. “Despite this growing threat, Zelle and the banks that own it have failed to implement adequate safeguards and reimbursement policies to make consumers whole when they fall victim to scams and fraud." 

The Economist's lead article last week was "Scam Inc.": "Online scamming compares in size and scope to the illegal drug industry. Except that in many ways it is worse. One reason is that everyone becomes a potential target simply by going about their lives. Among the victims we identify are a neuroscience PhD and even relatives of FBI investigators whose job is to shut scams down. Operating manuals give people like Rita step-by-step instructions on how to manipulate their targets by preying on their emotions. It is a mistake to think romance is the only hook. Scammers target all human frailties: fear, loneliness, greed, grief and boredom.

Another reason scamming is worse than drugs is that the industry is often beyond the reach of the law. ...Some of the profits buy protection from politicians and officials. In the Philippines a Chinese national called Alice Guo became the mayor of a small, run-down town and built a scamming complex there with about 30 buildings. Over $400m passed through her bank accounts in 2019-24. In Cambodia, Laos and Myanmar cybercrime is a mainstay of the economy. Scam states are likely to become even harder to deal with than narco states. 

...AI will turbocharge this innovation. Even today, just 15 seconds of someone’s voice is enough to produce a clone that criminals use for impersonation. An employee in the Hong Kong office of Arup, a British engineering firm, was tricked into paying out $25m by a video call with deepfakes of his colleagues, including the head of finance...

...Today too many police forces that devote huge resources to combating the drugs trade treat scamming as a nuisance and victims as dupes."

So don't expect law enforcement or your bank to protect you from financial fraud. You need to protect yourself.

Edited February 14 by Lotus-eater

[BuffaloKyle]

I use a local credit union so someone would have a tough time pretending to be from my bank.

[Lotus-eater]

2 minutes ago, BuffaloKyle said:

I use a local credit union so someone would have a tough time pretending to be from my bank.

Credit unions are less likely to be targets than big banks, but they also tend to use older technology and have fewer resources to combat fraud: more than 50% of credit unions use legacy computer systems.

[soloyo215]

38 minutes ago, Lotus-eater said:

Credit unions are less likely to be targets than big banks, but they also tend to use older technology and have fewer resources to combat fraud: more than 50% of credit unions use legacy computer systems.

Less likely, but not impossible. Just today I spent some time with my CU's fraud department because I saw a transaction in a place I've never been to. They blocked my card and tomorrow I have to go get a new one.

Electronic scams are getting more sophisticated.

13 hours ago, d.anders said:

I've seen several recent YouTube videos warning people about the rise in bank scams. Thieves are using very sophisticated methods to pose as someone from your bank's fraud department. It is very difficult, especially for older people, to tell that they are being duped. They use exact language and logo material that your bank's fraud department would use. This morning, I just got an email from my bank. They are changing their rules around Zelle use due to the increased rate of scams. Apparently, part of one scam gets you to approve a wire transfer without your knowledge. A lot of people don't know that theft through wire transfer and Zelle is not bank protected. If you're not careful, thieves can easily wipe you out, and you're left holding the empty bag.

Yes, the trick is that they sound official, but they ask you for your personal data to "verify". I got a call like that and my response was, "you are the one calling, why don't you tell me? Normally the verification is for when I call, not for when the bank calls". She got belligerent and I just said "fuck you" and hung up.

[d.anders]

Apparently, a lot of the fraud is occurring through texting. I don't text, so I don't know what the process looks like. The number of victims seems to be staggering, which explains why my bank sent out notices. The way it was explained on YouTube was very scary. Thank God for YouTube. I learn so many helpful things there, even though I hear it has an ugly side.

[+ Pensant]

Any funny numbers or emails are immediately trashed and referred to junk. Remain paranoid and you’ll be doing yourself a huge favor.

[+ Charlie]

My landline phone identifies a caller, and earlier this week it identified the caller as my bank, so I answered it. A male voice--that quickly sounded AI-generated to me-- said that he was calling because he was from "American Solar" and was working with my bank to arrange free installation of solar panels on people's homes. He then asked if I were the owner of a private home. Well, if he got my number from my bank, then he would already know the answer to that question. So I suspected that the next questions would be about my bank accounts, and I immediately hung up. I googled the phone number of the caller, and though I couldn't find an exact match, every number that came up with that area code and exchange was attached to a strange foreign-sounding name (my background includes study of several languages, and I didn't recognize the origin of any of the names--they sounded made up). I found the bank's email address for reporting phishing attempts, wrote to them with all this information, and in 10 minutes I had a response from the bank thanking me for the report, which they said they would investigate.

[Lotus-eater]

1 hour ago, Charlie said:

My landline phone identifies a caller, and earlier this week it identified the caller as my bank, so I answered it. A male voice--that quickly sounded AI-generated to me-- said that he was calling because he was from "American Solar" and was working with my bank to arrange free installation of solar panels on people's homes. He then asked if I were the owner of a private home. Well, if he got my number from my bank, then he would already know the answer to that question. So I suspected that the next questions would be about my bank accounts, and I immediately hung up. I googled the phone number of the caller, and though I couldn't find an exact match, every number that came up with that area code and exchange was attached to a strange foreign-sounding name (my background includes study of several languages, and I didn't recognize the origin of any of the names--they sounded made up). I found the bank's email address for reporting phishing attempts, wrote to them with all this information, and in 10 minutes I had a response from the bank thanking me for the report, which they said they would investigate.

Phone numbers from scammers are frequently spoofed. Contacting your financial institution using the information on your card or statement is safer than looking it up online because google's algorithm to block fake websites isn't perfect.

[+ Charlie]

Yes, I got the mailing address from my bank statement.

[d.anders]

3 hours ago, Charlie said:

I found the bank's email address for reporting phishing attempts, wrote to them with all this information, and in 10 minutes I had a response from the bank thanking me for the report, which they said they would investigate.

I do the same thing when odd stuff happens.