Financial intuitions around the country are reporting "impostor fraud" attacks on accountholders where criminals are posing as a fraud team or representative from your financial institution. These attacks have resulted in as much as $10,000 in losses from a single attack.
In these attacks, the fraudster calls, texts, or emails the accountholder as your financial institution's fraud department, to “verify” their card numbers and other private information (e.g. account number, user name and password, PIN number, security code, etc.) to gain access to account funds.
Watch CUbroadcast's interview with Ann Davidson on COVID-19 fraud trends:
Many consumers are aware of the upturn in fraud crime occurring in relation to COVID-19. As such, criminals are hoping this sneaky fraud tactic will increase their chances of gaining fraudulent access to accounts by capitalizing on your accountholders' fears. Because these accountholders are under the assumption their financial institution is contacting them, many are willingly giving out private information.
Tips to mitigate exposure to these crimes:
- Educate your entire staff and call center about these attacks so they are aware fraudsters are posing as fraud team members, and they stay on high alert for the tell-tale signs noted above.
- If an accountholder requests an email or number change via online or mobile banking, instruct staff to call the accountholder at another known phone number on record to validate and confirm the request's validity.
- Consider turning off email changes and phone number changes via online/mobile banking platforms.
- Let accountholders know about phone number “spoofing” so they understand these calls are not legitimate and know not to answer.
- Before placing a travel alert, call and speak with the accountholder to confirm they requested it.
- Let all accountholders know about these crimes, informing them to hang up/ not respond to any incoming call/text/email claiming to be from your financial institution, and to call the financial institution’s listed phone number to report any such incident right away.
- Consider sending out a communication to accountholders about these scams and/or adding a warning when accountholders log in to your online and mobile banking platforms.
- Advise members to monitor the news and Federal Trade Commission (FTC) website or to signup for the FTC alerts so they remain aware of other common scams.
- Connect with your vendors to make sure they know about these attacks and to ensure they are educating their staff and clients about them.
With these crimes increasing, it is critical you continue to take steps to prevent fraudsters from infiltrating your financial institution or misappropriating your accountholders' funds.
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