Internet Crime Center warns of new SMS scam

The United States Internet Crime Complaint Center, also known as IC3warns public of cybersecurity scam that tricks people into transferring funds to ‘undo’ instant payments, FBI says Press release.

Cybercriminals target victims by sending text messages with what appear to be bank fraud alerts asking if the customer has initiated an instant money transfer using digital payment apps.

“Once the victim responds to the alert, the cybercriminal calls from a number that appears to match the financial institution’s legitimate 1-800 assistance number. Under the guise of canceling the fake money transfer, victims are scammed into sending payments to bank accounts under the control of cyber actors,” according to the statement.

See also: 5 Takeaways About the FBI’s 2021 Internet Crimes Report Pandemic Fraud

The sophisticated phishing and social engineering scam results in victims unwittingly using payment apps connected to their bank accounts to send funds to fraudsters. The apps facilitate the quick transfer of funds between registered users. Only the recipient’s email or mobile number can initiate an instant payment transaction.

In addition to knowing the victim’s bank and related data, criminals often had access to additional information such as past addresses, the person’s social security number, and the last four digits of their bank accounts. This information was used to convince customers that the steps they were being asked were the financial institution’s legitimate process to recover the stolen funds, according to the IC3 statement.

Read more: SIM card swapping fraud highlights biometrics and behavioral analysis as a defense

The scam often tricks people into believing that they are sending the transaction to themselves, when in fact the victims are sending instant payment transactions from their bank account to another account controlled by the thief. Often fraudsters interact with people for several days, with victims only realizing they have been scammed after checking their bank statements.

IC3 warns that the proliferation of major data breaches over the past 10 years has given cybercriminals a wealth of personal data that can be repeatedly used in a variety of scams and frauds.



Plastiq - The Future Of Business Payables Innovation: How New B2B Payment Options Can Transform The SMB Back Office - April 2022 - Find out how all-in-one payment solutions can help businesses streamline B2B transactions and eliminate transaction friction. AP and AR management

On: While more than half of SMBs believe an all-in-one payment platform can save them time and improve cash flow visibility, 56% believe the solution could be difficult to integrate with AP systems and existing ARs. The Future Of Business Payables innovation report, a collaboration between PYMNTS and Plastiq, surveyed 500 SMBs with revenues between $500,000 and $100 million to explore how all-in-one solutions can exceed customer expectations. SMEs and help sustain their activities.

About Hannah Schaeffer

Check Also

Launches: SpaceX tests Starship, wins customers

SpaceX conducts an engine test on Starship 24 at its Starbase facility in Boca Chica, …