There is a warning for all you online banking customers: Crooks are offering free fraud protection insurance. The hope is that your guard is down and you accept the phony offers. It's a trick that could wipe out your bank account.
Banking online is safe -- until crooks get involved. There's a new trick to get your cash, an offer for free insurance protection against online fraud.
Scott Nininger is Director of Risk Management with Union First Market Bank.
"It is a very clever scheme," said Nininger. "There is no such thing, to my knowledge, of insurance protection against fraud."
Crooks use a malicious program to target customers while on a bank site. A window or a pop-up appears asking you to sign up for the fake fraud insurance and then creates a phony account.
"The trap has been set, because once you click on it and it starts filling-in the information, there is something call malware — or malicious software — and what it does is it actually looks into your bank account," said Nininger.
It doesn't stop with criminals taking a peak into your account — they want your money.
"When you have provided the credentials and the password it requires, what has happened is, you have activated the account but unfortunately you have just authorized the transfer of legitimate funds from your account to the fraudster's account."
There are couple of things that can help protect you from these types of scams. First, search your bank's website. It will have a section about how to spot and report these type of scams. Another thing to keep in mind, the bank knows who you are, crooks don't. Any request for information, should make you suspicious!
"Your bank, companies that you deal with, already have your account number, your social security number and other information when they first dealt business with you. If someone is asking you for that information, don't provide that information," Nininger said.
Another blanket of security is to make sure your anti-virus is updated. If you have doubts when it comes to your money, don't just act -- call the bank.
Report the first sign or hint that there has been fraudulent activity.
"The message to everybody is look at your statement. Look for any unauthorized activity and partner with your bank, contact your bank and let them know so we can minimize your exposure," said Nininger.
Another safety tip when dealing with your bank, always look for the "HTTPS" in your browser's address bar and a padlock symbol. This will let you know the site is secure.
For more about the scam and online banking safety visit these links:
Trusteer blog - link
FDIC: Safe Internet Banking - link
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