Obligations to avoid the risks of a bank scam
A hacker has accessed your company’s account through an unsuspecting relative and ordered a large transfer. See how to try to recover money in the face of a bank scam: your usual operations and reacting in time can be key.
Bank fraud, financial fraud, deception in banking transactions and identity theft are issues of concern today. These cybercrimes can have serious consequences for those who fall victim to them.
It is important to be informed and take precautions to protect our personal and financial data.
In this article, we will explore what a bank scam is, how financial fraud is carried out, what security measures you can take and what to do if you become a victim of identity theft. Keep an eye out for these illegal practices and learn how to protect yourself against them.
Common signs and techniques used in banking scams
Electronic banking is now the predominant way of making payments and collections between companies and with individuals, and with it the risk of cybercrime increases: unauthorised payments, fraudulent transactions, card cloning, etc.
Bank phishing is an increasingly common fraudulent practice in which fraudsters attempt to obtain confidential information, such as passwords or bank details, by masquerading as legitimate financial institutions. This form of fraud is carried out through fake emails, fraudulent phone calls and fake online banking websites. The most common banking scams:
- Fake emails or messages from financial institutions are very convincing and often include logos and designs similar to those used by real banks. These messages often ask the recipient to provide personal details or to click on a fake link to a fraudulent website.
- Fraudulent phone calls are also common in bank phishing. Fraudsters pose as bank employees and try to obtain confidential information under false pretexts, such as security investigations or account updates.
- Finally, fake online banking websites mimic the appearance of real financial institution websites. These fraudulent websites often trick users into entering personal information or conducting fraudulent transactions.
Fraudulent e-mail: how to detect and avoid it
Phishing email is a form of phishing in which cybercriminals attempt to trick users by impersonating trusted entities in order to obtain personal or financial information. It is important to be alert and aware of the indicators of a fraudulent email to protect yourself against this type of scam.
There are several signs that can reveal the presence of a phishing email. First, pay attention to the sender of the message. If the sender looks suspicious or unfamiliar, it is advisable not to open the email and to delete it immediately.
Also, look at the content of the message. Fraudulent e-mails are often urgent, threatening or request sensitive personal information. They may also contain obvious grammatical or spelling errors. These are clear indications of a phishing attempt.
Another indicator to look out for is the web address to which the email redirects. Before clicking on any link, hover your cursor over it without clicking to see if it matches the legitimate address of the website you are trying to reach. If there is a discrepancy or if the address looks suspicious, avoid clicking and do not provide any personal information.
Fraudulent phone calls: how to recognise them and protect yourself
It is important to be alert to potential telephone scams in which so-called bank representatives attempt to obtain personal information. These fake representatives may use deceptive tactics to request confidential information or engage in suspicious activity during the call. Here are some key tips to protect your personal information during phone calls:
1. Verify identity: Before providing any personal information, be sure to confirm the identity of the bank representative. Ask for their full name, employee number and department.
2. Do not share sensitive information: Do not give details such as bank account numbers, passwords or PIN codes over the phone, especially if the request is unusual or suspicious.
3. Confirm with the bank: If you are in doubt about an incoming call, contact your bank directly using the official numbers provided on their websites or official documents. They will be able to verify whether the call is legitimate or not.
4. Stay in control: Don’t let the supposed representative pressure you to make quick decisions or take immediate action. Take your time to analyse and confirm any request before acting.
5. Report suspicious activity: If you believe you have been contacted by a fake bank representative, do not hesitate to report it to your financial institution and the relevant authorities to avoid potential fraud.
Remember that protecting your personal information is critical to keeping your accounts and transactions safe. By following these tips, you can be better prepared to identify and avoid potential phone scams.
Precautionary obligations against bank scams
Well, both you and the bank have their respective prudential obligations to avoid risks.
Obligations of the Account Holder
You, as the holder of the accounts with which you operate online, are obliged to act at all times in accordance with the instructions given by the bank regarding security (whether at the time of contracting the transaction or through warnings in e-mails, leaflets or posters in the branch).
If you do not observe these rules of caution, the bank will not be obliged to reverse a fraudulent transfer. For these purposes, the standard is:
- Minimum diligence. Do not share passwords, keep them in a safe place and under lock and key and always confirm any transaction that deviates from the norm (e.g. a change in the usual payment account number).
- Necessary diligence . You should also be alert to timely notifications from the bank if it detects attempted attacks or suspicious movements.
The bank’s obligations in the face of bank scams
The bank also has its obligations and, by law, must implement all IT security mechanisms that the state of the art allows to guarantee the security of transactions.
It must also design IT tools to detect fraudulent practices, for example:
If your historical banking payment transactions are between 1,000 and 5,000 euros and a transaction worth 30,000 euros is ordered from your accounts, the bank must have an algorithm or similar that blocks the transaction until it confirms it with you personally.
If it fails to do so, it may be in breach of its obligations, in which case it must reverse the transfer and even compensate you for the damage caused.
Steps to take in case of a bank scam
Step 1: report to the police Although these actions are normally shelved because it is difficult to identify the perpetrator, it is an essential step.
If you do not do so, your claim to the bank will not be successful, as without a police report the bank will not take the necessary steps for the refund.
Step 2: Complaint to the bank: With a copy of the complaint, ask the bank to refund the amount defrauded (you have 13 months from the irregular charge to make your complaint) and you must do so with acknowledgement of receipt.
However, if your reaction is immediate, you may be able to get the money back if the payment is made after the “cut-off time” (usually between 20:30 and 21:00), as in this case the funds remain with the bank until the following day. If the complaint is lodged on the same day, the transfer can in principle be reversed.
If none of the above works and you have been cautious, go to court.
The bank will have to prove that its computer system was working perfectly and that it was not negligent, otherwise it will be ordered to pay you back the amount defrauded.
How to protect yourself against bank scams and keep your finances secure
In the digital age, it is vitally important to protect our financial information. To ensure our security in online banking, there are a number of steps we can take.
One of the first measures is to use strong passwords. It is recommended that our passwords contain a combination of upper and lower case letters, numbers and special characters. Avoid using easily accessible personal information such as names or dates of birth. In addition, it is important to change our passwords regularly to avoid potential vulnerabilities.
Another key measure is multi-factor authentication (MFA). This technique adds an additional layer of security by requiring more than one form of authentication to access our online banking accounts. For example, in addition to entering our password, we may also be asked for a code sent to our mobile phone or a fingerprint.
It is essential to regularly review your bank statement. This will allow us to detect any suspicious activity or unauthorised transactions. If we identify any irregularities, we should immediately report them to the bank so that they can take the necessary measures.
In addition, we should ensure that we use secure connections when accessing our online banking. Avoid conducting financial transactions over public or untrusted Wi-Fi networks, as they can be prone to cyber attacks.
In case of cyber-scam in online transactions with your bank, report it to the police and claim your money back from the bank. If you do it the same day before the “cut-off time”, you will probably get your money back.
