CSB Blog

Overview:

Regulators and financial institutions have seen an increase in attacks designed to trick customers into moving their money from insured accounts to “protect” the funds. Known as “move your money scams”, these attacks can be hard to detect and stop, especially when customers may believe that an institution is covering up its own deficiencies.

What is happening?

The attacks usually start with a customer receiving a call warning them that a fraudulent or criminal activity has been detected on their account. The callers may claim to be working with a regulatory agency (Federal Trade Commission (FTC), etc.). In other cases, the caller may claim to be from a bank, and the fraudulent activity was discovered during an internal investigation. In either case, customers are usually instructed not to tell their institution about the activity because the customer may tip off those performing the activity that they are onto them. The customer is also sometimes instructed to lie if questioned by their institution about the transaction. The attackers will offer to help move their funds to a “Safe” place. Depending on controls at the institution, this may require that the customer share MFA verification codes with the attacker. This has included transfers of funds to other accounts, ACH transfers, and wire transfers.

The concern:

Since customers are participating in the movement of their funds and are often told to lie to their institution, it can be hard to detect and stop this kind of attack.

Here are some helpful tips:

1. Never move or transfer money to “protect your account”.
2. Never share a verification code. 
3. Always verify suspicious claims by calling the number on the bank statement. Sometimes, scammers will provide a number to call, but you should ONLY call the number of your financial institution.
4. Report a call to your institution immediately if you suspect fraud. This will help to reduce fraud on an account and help to communicate scams to other customers.

Clinton Savings Bank (CSB) is not a financial advisor. Please consult with a licensed professional who can provide advice tailored to your individual circumstances. While we hope you find this content useful, it is only intended to serve as a starting point. Your next step is to speak with a qualified, licensed, professional who can provide advice tailored to your individual circumstances. Nothing in this article, nor in any associated resources, should be construed as financial or legal advice. Furthermore, while we have made good faith efforts to ensure that the information presented was correct as of the date the content was prepared, CSB disclaims any liability arising from the use or misuse of these materials and, by visiting this site, you agree to release CSB from any such liability. Do not rely upon the information provided in this content when making decisions regarding financial or legal matters without first consulting with a qualified, licensed professional.

Sources: bedelsecurity.com