by Venus Zoleta, on category "Personal Finance"
January 21, 2018
Online banking scams in the Philippines are becoming rampant as technology advances over time. While online banking is convenient, it also comes with certain risks. The money you’ve worked hard for could disappear in an instant the moment a hacker gains access to your bank account.
Apart from earning, saving, and investing, another life-saving skill you need to master when it comes to your finances is protecting your money against scammers who are out to make money from unsuspecting victims.
Knowing how the different banking scams work and how to avoid them can help protect yourself against these unfortunate events.
Hackers seem to never run out of creative ideas to deceive the banking public and make money out of it. Who would’ve thought that a simple mobile phone SIM card can be used for fraudulent activities?
Also known as “Palit SIM” scam, SIM swapping is a relatively new form of online fraud in the Philippines. Scammers pretend either as legitimate mobile subscribers or authorized representatives of a mobile subscriber and request telecommunication companies for SIM card replacement. Then, they use the mobile number to access their victims’ personal information, including bank account and credit card details.
Just recently, a SIM swapping incident was reported after a woman lost PHP 40,000 in her bank account. It turned out that someone had switched her SIM card without her knowing it, and then accessed her online banking account that’s linked to her mobile phone number.
Another Pinoy fell victim to Palit SIM scam in 2015, almost losing PHP 48,000 through unauthorized fund transfer. Interestingly, the suspect who requested for SIM replacement on the victim’s behalf, apparently without his knowledge, was the victim’s former colleague. According to the NBI, this allowed the hacker to collect the victim’s personal information and use it for fraud.
Have you noticed any unauthorized transactions from your bank account lately? If someone has withdrawn cash from your account without your knowledge, your ATM card may have been compromised due to ATM skimming.
Also called card skimming or data skimming, ATM skimming involves copying a bank account holder’s personal information from the magnetic stripe on the back of an ATM card or credit card.
Scammers use illegal skimming devices to read the card’s magnetic stripe and steal the details in it, making a fake or cloned card to access the owner’s bank account and complete banking transactions like cash withdrawals and fund transfers.
Phishing is one of the banking scams in the Philippines that continue to lure unsuspecting victims into providing their confidential data, allowing scammers to perform unauthorized transactions using the information they stole.
Ever received an email supposedly from your bank that asks you to confirm your account information by clicking on a link? Be wary of this sign of email phishing. This illegal activity can trick you into filling out a form with your email password, credit card details, and other sensitive details via a fake website that looks similar to your bank’s online banking facility.
Losing your money to unscrupulous people can be a harrowing experience. The government and banks in the Philippines are working on stricter measures to prevent these online banking scams, but you must also do your part in ensuring your online security and privacy.
Do you have other tips on avoiding banking scams? Share your comment below.