Bank Fraud – Modern methods

Bank Fraud - Modern methods

Bank Fraud – Modern methods

Modern bank fraud methods – Banking services have developed during the last 5 years as a result of the use of financial technology with amazing development, the electronic phone wallet, and Internet banking.

And Token management programs have appeared. Customer accounts and other customers’ accounts within the customer’s bank and from the customer’s accounts to the accounts of customers of other banks.

Then external transfers in addition to checking services, certificates, loans, bills, government services, etc.

Certified Fraud Specialist – CFS (USA)

But it is noted that the development was much faster than the development of the culture of a number of clients, especially in the part related to recognizing the importance of maintaining confidential numbers for those programs and possible fraud methods. The aim of the article is a review of the most famous bank fraud methods as a result of not taking some precautions to be taken from clients:

The first method: is fraud using online banking services

It is the most dangerous of all, and the reason is that the fraudster can access all the customer’s bank accounts and cards and then transfer the available customer balances if he is not able, he may buy any product or service in an attempt to hide the crime to make the arrest process more difficult, and the questions are certainly:

  • How can the fraudster do that?
  • Are the banking systems really hacked?

Fraud process

The fraud process begins with the target customer receiving a phone call from a number that appears to be from the central bank or customer service of a bank (note that the fraudster records the phone number on the caller’s name detection programs in the name of a bank), then tells the caller (the scammer) the target customer that he is an employee of one Bank and he is going to either:

  • Update customer data
  • Transferring a financial reward to the customer with or without a reason
  • Transfer the amount of precarious employment
  • Registering the customer in one of the bank’s activities to get a prize and others

The question that arises is:

The indisputable fact is that all banking systems enjoy the highest levels of global security and these systems are constantly tested and updated, and the fraud monitoring units in banks enjoy the latest systems and continuous training for all employees.

How is fraud done?

The answer is to suppose that a customer gives his bank card and the password to that card to a person with his complete consent, and then this person (the second party) exploits and uses that card to withdraw all the balances of the customer (the fraudster) using that card’s password.

Stop this movement from the banks or review it.


  • Never ask for customer data over the phone
  • Have not and will not update customer data by phone
  • Do not communicate with customers to transfer any amounts to and from their accounts

The second method: is fraud using bank cards

It is the most famous and oldest method, similar to the previous scenario in which the fraudster contacts his victims of bank customers by phone to tell them about again, join an initiative or update the data,

but the difference is that the customer’s focus here is away from his fixed data, the fraud’s goal is only 3 or 4 information and nothing but an illusion As follows:

  1. The customer’s bank card number of different types (Debit & Credit)
  2. Expire date of the bank card
  3. The security code registered on the back of the CVV card
  4. The password sent to the customer’s phone during the OTP call (Optional)

With the availability of this data, the fraudster makes purchases through the Internet, after which the customer (the fraudster) discovers that his bank balances have become purchases in addition to a group of other methods.

The first question is,

What should bank customers do in the event that a fraudster contacts them by phone?

  • Shut the line immediately and do not provide fraudsters with any kind of data, no matter how simple it seems.
  • Communicate with the customer’s bank immediately and provide the bank with the fraudster’s mobile phone number.
  • In case the customer suspects that he has provided the fraudster with any data, the customer must contact the bank immediately and stop the online banking service.

Second Question:

Are banks standing idly by from all these types of fraudulent attacks? Are these efforts sufficient to protect the client?

Banks spare no effort to protect their customers. Whatever the cost, in terms of money, human resources, protection systems, and media awareness to introduce fraudulent methods, in cooperation with all concerned parties such as the central bank and security authorities.

But this is the most important, the first line of defense for the customer’s card accounts and balances is the customer himself and the banks come as the second line of defense.

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