While I was emphasizing on why a bank reconciliation is a good way to ensure that your money in the bank is in safe hands, we have people happily sharing their PINs with perfect strangers, hoping to win cash prizes.
Referring to recent reports in the local media on unauthorised withdrawals from individual bank accounts, a total of 165 complaints on unauthorised withdrawals were received by Bank Negara Malaysia in 2008. Based on investigations, all of these cases were due to customers knowingly or unknowingly divulging their personal information such as personal identification numbers (PIN) and passwords to third parties or fraudulent parties.
In most cases, victims of unauthorised withdrawals had received an unidentified sms (from fraudster) to inform them that they have won a cash prize. To claim the promised cash prize, the victim is informed that they have to open an internet banking account. The victim then contacts the fraudster and the fraudster will provide a step-by-step guide on how to register and activate their internet banking account using the ATM terminal. At point of registration at the ATM terminal, the victim will be given an internet banking personal identification number (PIN). The fraudster will ask the victim for this PIN and use it to create an internet banking account for the victim. The fraudster will then ask the victim to register the fraudster’s mobile phone number in order to obtain an Authorisation Code to enable transfer of funds via internet banking. This will result in the Authorisation Code being sent via sms directly to the fraudster’s mobile phone. The victim has now unknowingly provided the fraudster with full access to their banking account.
As much as I would like to sympathize with these victims, I think the best lesson is to let them be gulled once, or maybe twice.
I am much more concerned about the less technology-savvy fraudsters where they hold a parang behind your back while you are making withdrawals.
You might want to read these too...
- Western Union Withdrawals in Malaysia
- Quick KWSP Facts
- Online Banking Phishings
- Common Banking Mistakes
- Pre-mature EPF Withdrawals
- Changes in KWSP
- SMS and Calls from Bank Account Scammers
- Suspicious Minds
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There are a hundred and one ways for people to get money especially through scam, fraud, phishing and fear.
I believe most unauthorised withdrawals from banking accounts are due to the account holders not being educated about how the security of the banking systems work.
Eg, what is phishing, how does TAC authorizes a transaction etc.
Most banks only updates their website with pages and provides warning, people might actually get conned when they are not made known of ways fraud happens especially those not so tech-savvy.
Comment by Marvin Lee — January 6, 2009 @ 4:50 pm
this kind of news come out once in a while, especially when someone is going to become a prime minister or so … but the truth is that the whole finance industry is really young and naive, especially when we still use 'checks' as 'contractual payment' despite the today's inter bank linkage.
having said that, IT industry is 10 times younger than Finance … still.
Imagine Citibank credit card online is rewarded as the best 'security' facility many years and yet its one of the few cards who do not require extra authentication when paying online.
Comment by mtsen — January 7, 2009 @ 6:02 pm