Consumers are being warned of a new ‘direct debit’ scam which is falsely leading people to believe their bank account has been hacked.
FraudSMART, the fraud awareness initiative led by Banking & Payments Federation Ireland (BPFI), said the scammers are persuading people to move their money to a so-called ‘safe account’ in order to protect it.
It is calling on people to be extra vigilant of unsolicited text messages and phone calls.
While this scam has only recently been detected by FraudSMART, cases are rising – with customers being conned out of between €6,000 and €8,000.
Explaining how the scam works, Niamh Davenport, Head of Financial Crime at BPFI, said victims initially receive a text message impersonating their bank, falsely alerting them to a ‘new’ direct debit that has been set up on their bank account.
“The text message advises that if they didn’t set up this direct debit, they should call the phone number in the text message immediately,” Ms Davenport explained.
“This mimics the style of legitimate messages we might expect from banks or service providers when changes are made to our accounts, making it seem more convincing.
“However, banks will never include phone numbers for customers to ring within a text message,” she stressed.
If the customer calls the number in the text message they end up speaking directly to the fraudster, who tells them they are speaking to the bank’s fraud department.
“They are advised that their account is at risk and, in order to protect their money, they have to transfer their funds and close their account,” Ms Davenport said.
“They are asked to open their banking app or desktop account while on the call, set up a new payee or ‘safe account’ using an IBAN provided by the fraudster and transfer their money into this new account, which the fraudster in fact controls,” she said.
Ms Davenport said this is often followed by a text message ‘confirming’ that the new IBAN will be processed in 24 hours, along with details of the amount transferred and a fake ‘lodgement reference’, in order to further persuade the victim that it’s legitimate and also delay detection.
“These fraudsters can be very skilled at convincing people and gaining our trust, using a variety of psychological techniques known as ‘social engineering’, so it’s possible for any of us to be caught out if we’re not on alert,” she said.
“The most important thing to remember is to be very cautious of unexpected texts or phonecalls and if in any doubt, ignore the text message or hang up the call, and phone your bank immediately using the number on the back of your bank card.”
Tips from FraudSMART to protect yourself from phone and text scams:
- Do not reply to unsolicited text messages or provide personal or financial information.
- Do not use phone numbers provided within the text of a text message. Contact your bank using the number on the back of your debit / credit card.
- Do not click on a link from unsolicited text messages – remember your bank will never send you a link in a text message.
- If someone is pressurising you on the phone to take urgent action, hang up and call the number on the bank of your debit / credit card.
- Never give away personal information, bank card payment details, bank account details or security details such as your PIN or online password to anyone.
Article Source – Consumers warned of new ‘direct debit’ scam on the rise – RTE
