Cardless ATM Banking Scam
During the holiday shopping season we’re thinking about finding the perfect gift. When we do find the perfect gift for that special someone, whether online or in a store, we don’t need the experience ruined by our credit or debit card not working. Scammers and fraudsters know it too and they’re not taking the holiday season off!
Scammers Use Fake Mobile Banking Alerts
Many of us, myself included, use mobile banking apps to quickly, easily and safely access our banking account information. So what do you do when you get a text or email saying your account has been “locked” with instructions to “unlock” it? Scammers are using this type of banking alert scam to rob unsuspecting victims at an alarming rate. So, before you begin to panic, take a deep breath and call your bank or credit union directly. Don’t use the number provided or click on any links in the text or email!
How Banking Scams Work
The first step the scammer takes is to convince you that your account is locked with an official looking text or email. Once you take the bait, they ask you to confirm your bank account and debit card information either on a fraudulent site (a website that they have created and appears to be your banks official site) or over the phone with a number they provide you. They ask you to confirm your card numbers, account numbers, passwords, PIN numbers, security questions and your personally identifiable information. After they have all your information they use it to withdraw money from Cardless ATMs. In some cases completely draining your accounts!
What Are Cardless ATMs?
Like the name implies, Cardless ATMs are ATMs that don’t require the user to use their debit or credit card to access their account and withdraw money. They aren’t common throughout the United States, but most larger banks and financial institutions are using them in more and more locations. While they are secure, no financial institution would knowingly use a risky device, scammers will always find a way to exploit new technology.
Avoiding Bank Scams
The best way to avoid these types of scams is to know what your bank or financial institution’s policies are. Know why your account would be locked, i.e. too many failed login attempts or suspicious account activity, and how they go about contacting you. If you do receive an email, text or phone call from someone claiming to be from your bank hang up or ignore it, then contact your bank directly.