What is Account Takeover Fraud and How Can You Prevent It?
There is a new scam on the rise…account takeover fraud through the impersonation of fraud prevention tools. With the use of refined methods and social engineering, cardholders are deceived into revealing personal information and ignoring legitimate fraud warnings.
Account takeover fraud occurs when a scammer has obtained ample personal information and poses as the consumer to a financial institution. Scammers then implement changes to accounts or card settings that assist in the intent to commit fraud, including phone numbers, emails and passcodes. Other changes can include increased limits, PIN changes, and travel restrictions that eliminate typical fraud monitoring.
Contact Centers have reports of cardholders receiving phone calls claiming to be from the Fraud Prevention Department. The cardholder is sent a one-time passcode (OTP), is asked for their account number, and told to provide the code. The caller then instructs the cardholder reply “No Fraud” to text messages sent by the real Fraud Prevention Department in response to fraudulent transactions.
Prevent account takeovers with the following tips:
- Monitor your account frequently
- Never provide personal information such as full social security numbers or PINs
- Do not respond “NO FRAUD” to fraud alerts on activity you did not perform, regardless of who instructs you to do so
- Add multi-factor authentication to your accounts and contact center services as an additional layer of protection
- If you think you have been a victim of an account takeover, notify local authorities of card or ATM fraud and contact your financial institution immediately
Parke Bank will not ask for any personal information via email or text message. If you suspect you have received a fraudulent email or text, please contact us at 856-256-2500.