In the previous articles, we explored the most common digital and investment scams. Another form of financial fraud that is becoming increasingly common is impersonation fraud and identity theft.
Fraudsters do not always attempt to bypass technical security systems. Very often, they try to exploit our trust by pretending to be someone we know or someone we believe to be trustworthy.
Understanding these types of fraud can help us better protect both our personal information and our money.
In an impersonation scam, the fraudster pretends to be another person or organisation.
They may claim to be:
- an employee of our bank;
- a police officer;
- a government official;
- a representative of a courier or delivery company;
- a technical support specialist; or
- even a family member or friend.
Their goal is to convince us that the communication is genuine so that we disclose personal information or make a payment.
π‘ Example:
Andreas receives a phone call from someone claiming to be calling from his bank.
The caller knows his name and says that a suspicious transaction has been detected on his account. He then asks Andreas to provide the one-time password (OTP) that has just been sent to his mobile phone.
Andreas ends the call and contacts his bank himself using its official customer service number.
By doing so, he avoids becoming the victim of a fraud attempt.
π‘ Remember: No bank or other legitimate organisation will ask for our card PIN or a one-time password (OTP) over the telephone.
Identity theft occurs when someone obtains and uses our personal information without our permission.
This information may include:
- our full name;
- our identity card or passport number;
- our date of birth;
- our home address; and
- our bank account or card details.
These details may be used to:
- open bank accounts;
- apply for loans or credit cards;
- make purchases;
- gain access to online services; or
- carry out other illegal activities.
Fraudsters use many different methods.
For example:
- phishing emails or fraudulent text messages;
- fake websites;
- telephone scams;
- compromised online accounts;
- information shared on social media; and
- lost or stolen documents.
In many cases, only a small amount of personal information is needed to build a highly convincing fraud attempt.
Certain signs may indicate that someone is using our personal information without permission.
For example:
- transactions appear that we do not recognise;
- we receive notifications relating to accounts we never opened;
- we are contacted about debts that do not belong to us; or
- we can no longer access our accounts because passwords have been changed.
If we notice any of these signs, we should act immediately.
β οΈ Important
The earlier a potential case of identity theft is detected, the easier it is to limit the damage and reduce the consequences.
Protecting our personal information is one of the best defences against identity theft.
For this reason, we should:
- avoid sharing more information than is necessary;
- use strong and unique passwords;
- enable two-factor authentication (2FA);
- keep personal documents secure;
- report the loss of an identity card or passport to the relevant authorities immediately; and
- review our bank accounts regularly.
These habits can significantly reduce the risk of misuse of our personal data.
Fraudsters need information in order to carry out convincing scams.
The less personal information is available about us, and the more carefully we share it, the harder it becomes for someone to use our identity without our knowledge.
βοΈ Fraudsters often pretend to be
people or organisations we trust.
βοΈ We should never disclose PINs or
one-time passwords (OTPs).
βοΈ We should protect our personal
information and important documents.
βοΈ We should regularly review our bank
accounts and online services.
βοΈ We should report the loss or theft
of personal documents immediately.
βοΈ The sooner we act, the more we can
limit potential harm.
π Whatβs next...
Financial fraud extends beyond the types of scams we have examined so far.
In the next article we will explore other common fraud schemes, including romance scams, fake job offers, money muling and payment redirection scams, and learn how to recognise the warning signs before becoming a victim.
π Useful Links:
- Understanding Financial Fraud
- Recognising the Warning Signs of Fraud
- The Most Common Digital Scams
- Investment Scams and Social Media Fraud
- Other Common Financial Scams We Should Know About
- What Should We Do If We Become the Victim of Financial Fraud?
- Building a Culture of Protection Against Financial Fraud
