There’s a New Phishing Scheme Posing as Banks Via Text Message

Phishing scams have become something of a norm in recent years, with emails and robocalls becoming more and more common through elevated efforts by scammers. Now, a new type of phishing scam is hitting vulnerable victims in order to gain access to their financial information.

Through text messages, cybercriminals are now targeting people in order to get what they need to infiltrate their bank accounts. These texts usually feature messaging around suspicious withdrawals, prompting the soon-to-be victim to provide information for scammers on the other end of the line.

While there are precautionary measures being taken by banks today, such as text message verification for safeguarding sensitive accounts from being hacked, scammers are tricking people into believing their schemes through using a bank’s actual phone number.

How It Works

Someone will receive a phone call from their bank’s number, making it seem like a legitimate call and concern. A person on the other end will inform the victim that malicious activity has been spotted and that they need to verify their information via text. After hanging up, a text message is sent through providing a one-time PIN code. After calling back, the scammer is able to access the person’s account after they read that PIN code back to them.

The hacker is able to break through and gain access to the person’s account and list of actual bank transactions. What makes these phishing scams seem credible is the use of the bank’s own contact infrastructure, utilizing the bank’s phone number to get through.

A lot of scams take place over the phone, but by using text messaging to bolster the idea that it’s a secure verification process, scammers are making it more of a sophisticated execution.

This is putting banks in the crosshairs when it comes to major liability claims. The scammers have to get the bank’s contact information somehow, and if they are accessing the bank via IT infrastructure then there’s a lot more to worry about.

Banks should be sure to have their sensitive data saved and protected through effective bank crime insurance, like a cyber liability policy. Customers will not only be having to deal with retrieving and protecting their own personal information but will also have to find some way to get back what was stolen.

This type of phishing scam is hurting more than just the people who accidentally provide information as it’s finding a way to use a bank’s information to get what they want.

About Financial Guaranty Insurance Brokers

Since 1983, Financial Guaranty Insurance Brokers has distinguished itself as a provider of Professional Liability, Cyber Liability, and Crime insurance products for entities of all types. To receive timely, personalized service from a knowledgeable and experienced staff, call us today at (626) 793-3330 to speak with one of our professionals.