Account Takeover Fraud Trend

It seems like we hear about a new scam surfacing every few months! Here’s the latest.

Financial providers have seen an uptick in reports of fraud from accountholders who have claimed that they were contacted by their fraud department, only to come to find that this phone call from the fraud department was, in fact, fraud itself.

Cardholders have reported receiving phone calls from someone who claims to be from the Fraud Prevention Department. They are then provided a one-time passcode via text, which they are then asked to repeat to the person on the phone along with their account number. Then, the caller asks the cardholder to reply “No Fraud” to any texts from the REAL Fraud Prevention Department to avoid getting caught making fraudulent purchases.

From here, account takeover is unfortunately easy, as the caller can access other information about your demographics, and now that they have your account number and access to your account, they can make changes to your PIN, phone number, and much more.

It is important to note that your REAL Fraud Prevention Department will NEVER ask you for your full social security number, a one-time passcode, or your PIN. You should also NEVER respond “No Fraud” to any transactions that you didn’t do, regardless of who tells you to.

Lastly, account monitoring is the best way to prevent fraud. Being aware of all of your transactions will help you to notice suspicious activity in your account. And if you ever receive a call that doesn’t feel right to you, call the credit union for help. We’re here to assist!