Bank Customers Warned of New SMISHING Scam - expert comment

Bank Customers Warned of New SMISHING Scam - expert comment

Lisa Baergen

Director of Marketing at NuData Security

Views 313

Bank Customers Warned of New SMISHING Scam - expert comment

12.02.2016 10:45 am

“Smishing”, a twist on the “phishing” scam, is an old scam that evolves each time new technology comes along. When banks started offering telephone services, fraudsters would impersonate a bank and call customers  with criminal intent. As banks moved to providing online services and apps, fraudsters started emailing customer statements, fake websites popped up and phishing emails started to make the rounds. These SMS smishing scams are taking advantage of the consumer’s push for more mobile-friendly and innovative ways to communicate and interact with their financial institutions. With this specific wave of smishing attacks, hackers fool customers into downloading their malware by posing as a legitimate, unrelated app. The malware then takes over a legitimate SMS communication between the customer and their bank to socially engineer the customer into giving away their PII information and access their account.

Fraudsters know that it is generally easier to take over an account by phishing, spear phishing (targeting an individual) or smishing, than to open a new account using a real or stolen credentials, which is why account takeover (ATO) is alarming and, as we’ve been saying, on the rise. 

It only makes sense, that account takeover (ATO) has become a new favourite fraud tactic. So as we hear of yet another example of real customers being scammed of their hard-earned funds, it is just another blazing example underscoring the need for financial institutions to move away from PII as the relied-upon authentication method. With the overabundance of stolen data, access to full identities are prevalent and cheap, meaning it cannot be relied on for authentication purposes. Customer education can help reduce the number of times this scam is successful, but we shouldn’t rely only on placing that burden solely on customers and account holders. 

If your bank can't distinguish between legitimate users and fraudsters, even with valid credentials, it’s time to they move away from static data to protect accounts, and move to behavioural analytics for authentication.  User behaviour analytics observes and understands how the user behaves. Behavioural analytics looks beneath the surface of matching usernames, passwords and other means of authentication such as one-time SMS, to truly understand user behaviour. These behaviour patterns reveal details that fraudsters can’t fake despite their best efforts.”

Latest blogs

Ian Johnson Marqeta

UK finance finds that 7.4 million in UK living "almost cashless" lives

These findings show that even before COVID-19 struck, digital banking was increasing exponentially. As more people adopt online and mobile banking, the demand for greater personalisation, flexibility and value that consumers expect from their Read more »

Ian Bradbury Fujitsu UK

UK Finance's UK Payment Markets Report - Comment from Fujitsu

Over the past months, businesses have had to rapidly move away from physical cash in order to provide consumers with a safer service. However, this data shows us that a gradual movement away from cash in society started long before the Read more »

James Turner Turner Little

Protecting yourself against a recession

The coronavirus outbreak has spread to businesses, leaving many around the world counting costs. Notoriously, known as the Great Lockdown, it’s been affecting the world economy since early this year. The predicted recession is considered to be the Read more »

Alan Cole JHC Financial

Every Cloud: Covid-19 and the opportunity for digital transformation

Faced with tighter regulations and changing customer needs, over the last decade Wealth Managers have not had it easy – but with the development of new technologies, many have been able to create efficiencies, reduce costs and shrink operational Read more »

Nabeel Irshad Mastercard

Two sides of the same coin: Financial and digital inclusion

The issue of how to tackle financial inclusion has long been a part of the conversation in banking and financial services circles. Regulations have ledto the UK’s biggest banks having to provide ‘basic bank accounts’ to cater for those who do not Read more »

Magazine
ALL
Free Newsletter Sign-up
+44 (0) 208 819 32 53 +44 (0) 173 261 71 47
Download Our Mobile App
Financial It Youtube channel