Bank fraud: What tricks do criminals use?

Bank fraud is becoming increasingly sophisticated, and criminals are using new technology and psychological techniques to defraud customers. The main schemes of fraudsters include fake calls from bank advisers, bogus financial investments, stealing bank details and other types of scams. To avoid falling victim to scammers, it is important to know their methods and prepare in advance for possible threats. In this article, we'll look at the most common types of bank fraud, break down how criminals operate and give tips on protecting your finances.

‘You're getting a call from the bank": When criminals present themselves as counsellors

It seems like you are getting a call from a counsellor at your bank, as the number given does look like a bank number. You are informed of suspicious transactions, described as ‘anomalous’, or asked to update your personal details and, in order to cancel or verify transactions, resolve the incident or limit the perceived damage, you are asked to take action as soon as possible or provide confidential information. A fraudster may ask you for your online banking login ID, a password reset confirmation code, or a security code to confirm online purchases. To gain trust, the criminal may claim to send you a confirmation or summary of the transaction, but such actions are solely intended to steal your information.

This fraud scheme is called vishing (voice phishing). The scammer tries to get you to make transactions for his own benefit by posing as a bank employee. He presents himself as a solution to your problem, but is actually a threat himself. If you provide him with data such as card cryptograms, remote banking access codes or SMS confirmation codes, he can conduct fraudulent transactions without your knowledge.

It is important to note that the amount of spoofing (spoofing phone numbers) should decrease, because now they have started to actively use applications that can alert you that the call is spam. Moreover, some mobile operators implement such functions at once, so that you don't have to use third-party applications for checking. But still, here are a few recommendations to protect yourself from such scams:

• Never use codes to cancel transactions;
• End the conversation immediately and contact a real bank counsellor;
• Do not share online banking login details, activation codes or security codes;
• Do not confirm a transaction that you have not initiated.

False couriers: Criminals come to your home

This type of fraud is a variation of the bogus bank call scheme. More often than not, criminals obtain information about you and your account in advance by posing as social service or delivery staff, because first you receive a call from a supposedly bank employee informing you that your bank card has been compromised. You are advised to give the card to a courier who will come to your home to collect it, and to gain trust, the fraudster tells you the code that the courier must enter, or promises that soon you will receive a new card. Sometimes criminals even advise you to increase your payment and withdrawal limits.

In reality, a fake courier will come to your door to collect your bank card. The fraudster will then try to get your PIN as well as security codes to confirm transactions. He may even create the illusion of destroying the card by cutting it up in front of the victim, but the chip will remain intact. How to protect yourself: 

• The bank never sends couriers to remove cards;
• Do not give your card or PIN to anyone;
• If you receive such a call, contact the bank immediately.

Fake IBAN: How do criminals divert your money?

This type of fraud is no longer a problem exclusive to businesses - it can affect individuals too, this method is known as bank account details fraud. One of your creditors, such as your landlord or utility provider, tells you they've changed bank and asks you to transfer money to the new details, whereupon you're sent a new IBAN that claims to be your creditor's, but is actually a fraudster posing as your provider. He sends his own bank details using a fake email address that may look almost identical to the real lender's.

This scam is particularly dangerous because transfers using the new details can't be cancelled. The money will go to the fraudster and it will be almost impossible to get it back, so we advise you to pay attention to some precautions:

• Before changing bank details for payments, contact the company directly by official phone or e-mail;
• Be particularly wary of letters asking you to change your payment details;
• Check where the email is from - scammers often use similar but fake domains.

Financial pyramids and fictitious investments: How not to lose money?

Scammers may pose as credit organisations, banks or investment companies, offering you to open a savings account or invest in a financial instrument with a high yield and guaranteed income. Such offers may come by phone, email or even in advertisements on the Internet and social networks. Most often fraudsters use well-known logos of banks and investment companies, which makes their offers as plausible as possible.

If the victim falls for the bait, they offer to transfer money to the specified account. More often than not, the first payments do come, creating the illusion of profit. However, at some point the contact with the ‘investment company’ disappears and the invested money disappears. Here are some recommendations for your safety:

• Check companies offering investments on the official websites of financial regulators;
• Never invest money in schemes with guaranteed high returns - it's always a scam;
• Do not transfer money to accounts that are not from official banking institutions.

Conclusion: Bank fraud

Banking fraud is evolving and criminals are using increasingly sophisticated schemes. However, by knowing the basic methods of deception, you can protect yourself and your finances. Banking scams are becoming increasingly sophisticated, with fraudsters using fake calls, fake couriers and fake investments to swindle money. Regardless of the type of scam, their basic method remains the same - creating urgency and pressure on the victim. If you get a call from a ‘bank employee’ asking you to hand over your card to a ‘courier’ or offering an overly favourable investment, it's a reason to be wary.

Vigilance and critical thinking will help you avoid the traps of fraudsters and keep your money safe. If you have any doubts about the authenticity of a call or letter, contact your bank directly using official contact details. Don't let criminals use your emotions against you.