Scammers Intercept Verification Codes

Doris Roof, Senior Fraud Specialist from Montecito Bank & Trust warns us about fraudsters who work in pairs to intercept the verification code sent by your bank. Here’s how it works: One crook (who pretends to be the bank customer/debit card holder) calls the bank. Most often, the crook asks for an address change, an increase in their card limit or a travel exemption. (With a travel exemption, the crooks pretend they are traveling out of their typical area and ask for out of area charges to be approved…a very convenient way for the crook to get their charges approved!) A second crook is waiting for the verification code and gives it to the first crook so they can provide it to the bank, assuring them that they’re a legitimate customer. If the bank believes they are really talking to their customer (and not a crook), they are likely to approve the address change, increased limit, or travel exemption. How to Avoid this Scam: Do NOT respond to an unexpected text or call from your bank, even if they say there has been fraud on your account. (Remember, the caller ID can be spoofed, making it look as if the call is from your bank.) Instead, hang up and call the 800 number on the back of your debit card. Are You Responsible for the Loss? Often, the bank or merchant will take the loss. With debit cards, Regulation E protects banking customers who use electronic methods to transfer money. However, the fraud must be reported within 60 days, so be sure to check your bank statements monthly, or preferably more often.