According to Visa, in its annual “State of the Scams” report, criminals are resorting to old tactics thanks to investments in technology.
Paul Fabara, Chief Risk and Client Services Officer at Visa, points out that Visa and other financial institutions have invested billions of dollars in technology and infrastructure in the fight against fraud.
“Our network is more secure than ever,” Fabara said in a press release. “As payments become safer, fraudsters are reverting to tried-and-true tactics that target the weakest link in the ecosystem, consumers.”
With this improved technology, criminals are going old school.
3 Old-School Tactics
- The resurgence of physical theft – Visa notes that scammers have gone back to basics this year. After a theft, criminals capitalize on the opportunity by purchasing gift cards or physical goods for resell.
- Government impersonation scams – Fraudsters posing as representatives of government agencies, such as USPS, the FBI or the IRS, cost victims an average of $14,000 in the first quarter of 2024. Visa predicts that, as these scams become even more popular, banks will see large cash withdrawals at ATMs to deal with the fraud. (Note: most banks allow you to set limits on ATM withdrawals. Regions has withdrawal limits on a personal check card).
- The rise of authentication bypass scams – To get around two-factor authentication, fraudsters double down on one-time password phishing scams. Using urgent and convincing requests by text, email or over the phone, they try to gain access to an account and the information.
At Regions, we continue to invest in technology and infrastructure to protect our customers. But we also believe the best way to fight fraud is by educating the public of potential threats. That’s why Doing More Today devotes regular stories to the current news on fraud prevention.
Our goal in Client communication is to provide educational material to help keep you aware of the threats, along with resources to help you protect yourself from fraud and scams.
Jeff Taylor, head of Commercial Fraud Forensics at Regions Bank
Valuable Resources from Regions.com
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The information presented is general in nature and should not be considered, legal, accounting or tax advice. Regions reminds its customers that they should be vigilant about fraud and security and that they are responsible for taking action to protect their computer systems. Fraud prevention requires a continuous review of your policies and practices, as the threat evolves daily. There is no guarantee that all fraudulent transactions will be prevented or that related financial losses will not occur. Visit regions.com/STOPFRAUD or speak with your Banker for further information on how you can help prevent fraud.