Buzz
Amidst the current global chaos, it may seem like hackers and fraudsters would take a break. Sadly, that’s far from reality—fraud activity is ramping up.
The total value of fraudulent transactions attempted in April surged by 35% compared to the same period last year, according to a report from Fidelity National Information Services, Inc. (FIS), referenced by the Wall Street Journal. Fortunately, FIS reported that most fraud attempts were intercepted before completion.
Fraudsters are obtaining some of the data used to access people’s card details from breaches that occurred prior to the pandemic, as reported by FIS to the newspaper. This method extends beyond just credit and debit transactions—it also includes fraudulent pandemic unemployment claims made using the identities of individuals whose data was compromised in previous breaches.
In a case reported by the Wall Street Journal, a man received a call he believed was from his card issuer’s fraud department, but he was mistaken.
In late April, Anton Hinton received a call from someone claiming to be from JPMorgan Chase & Co. The caller, who was aware of Mr. Hinton’s full name, email address, and the last four digits of his account, informed him that his debit-card number had been stolen and needed to be frozen.
The caller instructed Mr. Hinton to set up a digital wallet for purchases until Chase could send him a new card to his home in Cleveland. During the call, he received an email, seemingly from Chase, containing a one-time activation code for setting up the digital wallet.
After ending the call, Mr. Hinton discovered that over $300 had been charged to his account in Florida.
We frequently advise individuals who are suspicious of a call from their “bank”—for example, if they’re asked to repeat a one-time code—to hang up and contact the institution directly to confirm the call’s legitimacy. However, during the pandemic, with many customers reaching out for assistance regarding payment deferrals or refunds for canceled events, long wait times have become commonplace. This often leads to added frustration for people trying to verify the security of their finances.
The pandemic presents a prime opportunity for cybercriminals. Consider this scenario: If you’ve requested a forbearance from your credit card issuer and you’re not making many recent purchases, you may not be keeping a sharp eye on your account. Fraudsters are aware of this and exploit it, hoping that their illicit activities go unnoticed.
Our defenses are understandably high: Many individuals have even discarded their relief payment debit cards, mistaking them for scammy junk mail. And who can blame them? Despite the rise in scam attempts during the COVID-19 pandemic, the fraudsters persist in their attempts.
In the first quarter of 2020, the FTC received over 13,400 reports of credit card fraud. While this number is comparable to the first quarter of 2019 (13,708 complaints), year-to-date data from the agency reveals that scammers are still relentlessly targeting consumers.
As many people grow weary from weeks of lockdowns, international health concerns, and national political turmoil, it's only natural that they might lose focus on the finer details of their finances at this time.
If it’s been a while since you last reviewed your credit or debit card transactions, now would be a good time to do so. If you haven’t already, consider setting up fraud alerts to receive notifications whenever an unusual charge occurs—or go a step further and opt for alerts that notify you every single time a transaction is made, so you can be sure every dollar spent was your own choice.
Even in the midst of challenging times, you can't afford to be too cautious. Taking simple steps to secure your financial well-being can help restore a sense of control and peace of mind, even if it's just a small improvement.
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