Beware of This New Banking Scam
Receive a text message from the bank informing you that your account is blocked? You may want to think twice before following his instructions.
Fraudsters use a combination of fake texts and cardless ATMs to steal thousands of dollars from unsuspecting people, according to Krebs on Security . The scam made them a killer in a fairly short amount of time: According to Krebs, the scammers stole $ 68,000 from approximately 125 Fifth Third Bank clients in Illinois, Michigan and Ohio in less than two weeks.
This is how it works. Scammers send text messages to customers stating that their bank accounts have been blocked. The texts include a link that takes customers to an analogue bank website where they enter their account credentials, “including usernames, passwords, one-time access codes and PINs,” Krebs said. With this information, fraudsters can use it at cardless ATMs to steal customers’ money.
Cardless ATMs allow customers to use their smartphones to receive cash rather than relying on a debit card. They are not very common yet, but are used by most large banks like Chase and regional banks like Fifth Third for customer convenience. They are reported to be safer than standard ATMs – at least that’s what the financial industry says – but like all new financial innovations, scammers have found a way to exploit them. As shown in the fifth third example, fraudsters in some cases only need a username, password and PIN to steal cash.
As Krebs suggests, never “respond to requests for personal or financial information sent by email, text message or telephone.” If you receive a confusing message or phone call, hang up or ignore it and contact your bank or financial institution directly.