There was a recent story on NairaLand..
Someone else had earlier sent the following to me,
SIM SWAP FRAUD
There is a new HIGH TECH FRAUD in town called the SIM SWAP FRAUD and hundreds of persons are already victims.
How it works
A new fraud called SIM SWAP has started.
Your phone network will momentarily go blind / zero (No Signal / Zero Bars) and after a while a call will come through.
The Person on the other side will tell you that he is calling from Airtel / MTN / 9 mobile / Glo depending on your network and that there is a problem in your mobile network.
He will instruct you to Please press 1 on your phone to get the network back.
Please at this stage don’t Press anything, Just cut the call.
If you press 1, the network will appear suddenly and almost immediately go blind again (Zero Bars) and by that action, your phone is hacked.
It is increasing day by day. Within a second they will empty your bank account and cause you enough damage.
What you will experience
It will appear as though your line is without Network, meanwhile your SIM has been SWAPPED.
The danger here is that, you will not get any alert of any transactions, so please those of us doing USSD Banking and Mobile Banking *BEWARE*. So please be careful.
Please forward to your contacts, loved ones and friends
If your phone goes missing, the first action is to call your bank to immediately block your bank account.
NEW ATM SCAM BY FRAUDSTERS THAT CAN LAND YOU INTO TROUBLE
A Nigerian man who works in a bank has given an outcry about the method used by scammers to commit financial fraud in the country.
The precautionary note shared by a banker on social media to caution the general public reads,
“I work as a Support Staff for a commercial bank, and I have witnessed this New Crime case twice this week alone!!!
This fraud usually occurs at the ATM galleries. An 18-year-old customer and another ‘rich’ adult customer were victims and now they have their BVN flagged for live and have cases to answer with the Police, and with their bank accounts on Post-No-Debit.
This is how it works;
1. You walk to an ATM and someone (fraudster) approaches you. The person may show you wads of cash and claim they have exceeded their withdrawal limit of 150k, and that they still need more cash. They then plead to make a money transfer into your own bank account so that you can withdraw it for them.
2. The TROUBLING thing in this seemingly harmless random act of kindness is that transfers are usually made from STOLEN PHONES or HACKED BANK ACCOUNTS!!!
3. The person who owns the bank account which the money transfer was initiated from would report to his bank, and the bank would send out a circular to the recipient’s bank with instructions to be carried out – which usually includes freezing your own account, BVN flagging, and on most times an order for your apprehension.
4. The next thing you would discover is that the next time you try to use your ATM card to withdraw, your transactions will be unsuccessful.
5. You then go to your bank and you get the news. You will thank your stars if there’s no MEMO to apprehend you and hand you over to the Police immediately – for something you surely don’t know about. You may be advised to quickly go get a Police Report.
The 18-year-old boy was sent to withdraw money from his bank account by his Mom. On getting to the ATM, he was held at gun point by the fraudsters and the money transfer was made, money withdrawn, and he was released. The money here was 40k. The boy was advised to report himself to the Police, and he should follow up with the bank.
The adult customer was approached respectfully by a fraudster brandishing loads of cash. So, he felt at ease and ‘helped’, not knowing he had been exposed for flagging. Here, the amount of money involved was 50k. The customer who has about 1 million naira in his bank account has now been undone because of 50k he knows nothing about. Now, there’s a MEMO to have the customer arrested anytime he steps into any of the bank branches.
Who knows if the stolen phones were acquired via One Chance armed robbers or the bank transfer details were supplied by Serial Hackers? This is a serious criminal issue.
Remember, if you have your BVN flagged, then you are so done with any legal financial dealings.
DO NOT HELP ANYBODY AT THE ATM!!! NOT EVEN AN OLD FRIEND, CHURCH MEMBER OR WHATSOEVER. SAY NO TO STRANGERS WHO APPROACH YOU FOR ANY TRANSFER FOR WITHDRAWAL AT THE ATM.
This led to a discussion of how secure funds really are in today’s Banks.
You need insider collaboration between the networks and the banks for some of these fraud to succeed.
And those won’t usually target bank accounts with paltry sums
There was a time GTB allowsed transfer via USSD without asking for a PIN… Not any longer..
Every *737 USSD transaction now requires a PIN.
I don’t think losing your phone would just open your account up to easy access like is being rumored..
Time was when you could initiate financial transactions with GTBank via USSD. Once the phone being used contains the line registered with the bank, the transaction is allowed through..
This flaw used to exist as illustrated by this person,
The catch is that, if you happen to be robbed, chances are that the culprits will make away with both your phone and your wallet (which will contain your ATM card). Presto. They have instant access to move cash out of your account.
This loophole was rectified (or was it?);- viz:
GTBank has finally plugged the hole. The service now requires a 4-digit PIN to be able to complete transactions on the platform. That is certainly a more secure approach to the service than the previous use of your card s last 4 digits.
Now, somebody is making a claim, which makes one wonder.
The transaction I made last week was not a bank transfer. Which they showed a 737 USSD code to dial to complete the payment. It was a Paystack payment. I dialled it and it asked for either pin or last 4 digits of ATM. I put the ATM one and the payment was processed successfully.
So maybe they have secured p2p fund transfers, but online transactions are still not as secure
We can only find out by testing it with other transactions.
Is it a fact that you can still successfully transfer funds on GTBank with USSD code *737 using the last four digits of the ATM?
I understand that, even after creating your own PIN, input of the default last digits (as it used to be) still works!!
What if somebody sticks you up, collects your phone and ATM?
Or kidnaps you, and drains your account while you are in captivity?
There are things that don’t make sense. This one doesn’t, if true.
I remember it was mandatory to create your own four digit PIN then, before you could transact, when the rectification was made years ago.
Why fortify your door against robbers, then leave the front window open?
The reason you are mandated to create a PIN is for security.
So, going ahead to still open up the system to successfully use the default last four digit of your ATM would be something strange.
If this allegation isn true, the GTBank and other Banks that operate this way need to do something to secure customers funds better.. fast..