Fraud Awareness -
In your latest fraud bulletin, we look at the latest scams to be aware of as well as security hints and tips.
Confirmation of Payee scams
We recently launched the Confirmation of Payee (CoP) service, which checks that the name on the account you are paying matches the one you have entered. Following the launch, we wanted to highlight some of the ways fraudsters may try to get around this control:
- Fraudsters may ask you to pay an account with a bank which is not presently using the CoP service, so you are not warned that the account names do not match. This means you will get an ‘Unable to Verify’ result.
- Fraudsters may tell you to expect a ‘No Match’ or ‘Unable to Verify’. For example, they may suggest you are paying an associated account in a different name.
- Fraudsters might actually give you the correct account name which is different to the person or business you are paying. They will give some explanation as to why the account name is different (e.g. paying back a friend, or this is a group business account).
While CoP is an excellent facility to help prevent fraudulent and misdirected payments when using online and mobile banking, it is always important to remain scam aware. It is best practice to always confirm the account information verbally with the person you are paying by calling them on a number you trust. Remember that fraudsters can, and will use electronic methods of communication (messaging applications and email) to pretend to be the payment beneficiary.
The use of email for payment instructions to your bank are particularly vulnerable to fraud and do not have the additional security of CoP. Consequently, we plan to remove the facility for email payment instructions before the end of the year. In the interim, we would strongly encourage you not to initiate payment instructions by email, and instead use our online and mobile banking options. If you would like help or guidance setting up and using online or mobile banking, your relationship manager will be pleased to help.
Have you heard of ‘friend in need’ scams?
A friend in need scam involves a fraudster posing as a close friend or relative who will contact the victim using a messaging app (e.g. WhatsApp). They will usually state that they have changed their phone, or that their phone has been lost or was stolen as part of a mugging. They will ask for money to be paid, to settle a bill or to repay a friend and will provide account information. If the number is called, there will be no answer.
Any requests from people claiming to be friends or family should be treated with suspicion until verified, even if the request comes from a recognised number. We recommend you never proceed with the requested payment unless you have verbally spoken to the person claiming to make the request.
Phishing scams – update
Phishing (attacks designed to steal your personal and financial data) enable other scams to take place. Learn more about phishing and the different ways criminals contact victims by visiting our fraud awareness pages.
Action Fraud have warned people to be on the lookout for fake emails claiming to be from Amazon. Emails may claim that Amazon accounts have been locked and request that you go through the identity verification process. We are also aware of fake emails asking customers to update payment details, linked to the recent dispute Amazon had with Visa.
Missed delivery scams
We continue to receive reports from clients who have fallen victim to missed parcel delivery scams. Victims can be contacted by phone, email, or text and will be asked to pay a small delivery fee meaning they provide their personal data and payment card information.
Always examine and consider any such communications closely. Fraudulent emails will often be generic, instead of being addressed to you personally. Check the sender’s email address to examine if it looks suspicious. Search the internet for any known scams. If you are still unsure, contact the organisation directly using contact information from their official website. Do not use the contact information they provide in the email, text message or phone call to you.
Solicitors being targeted with payment redirection frauds
The banking industry has highlighted that solicitors are being targeted by ‘number spoofing scams’. Fraudsters spoof the solicitor’s telephone number and call clients asking them to pay legal fees into a new account. Victims are warned by the fraudster they will get a ‘No Match’ on the Confirmation of Payee check, but to go ahead and make the payment anyway. This is a particular risk when dealing with property sales.
Number spoofing is a common tactic when conducting impersonation fraud. Whenever you receive a call about new account information, you must independently verify the change in details. This means calling a number you trust, ideally from a different phone. Be alert to the fact that some fraudsters will not hang up the phone leaving the line open, meaning if you try and call straight back from the same phone, you may still be talking to the criminals.
Apple Pay and Google Pay
We are pleased to see the increasing use of Apple Pay and Google Pay since their launch late in 2021 and beginning of 2022 respectively. Apple Pay and Google Pay are both convenient and can provide added security as your card information is not shared when making transactions. Arbuthnot Latham operate strict onboarding controls when adding your card to your mobile wallet, these controls include approving the onboarding of a card via the Arbuthnot Latham card app or via a one-time passcode (OTP).
If you receive a notification via our card app, or an OTP, about adding a card to Apple Pay or Google Pay that you have not instigated, then contact your relationship manager or call the number on the back of your card immediately and do not divulge this code to anyone. Criminals will gather information from phishing sites and may attempt to use this information to add your card to their own mobile wallet. However, they will need either the OTP or for someone to grant approval via our card app.
Remember that you can use our card app to block your card if you ever think you have been the victim of card fraud, or if you think your card details have been compromised.
For more information on how mobile payments work and how to add your card, visit www.arbuthnotlatham.co.uk/mobile-payments
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