How the Scam Works

• The scam usually involves an automated call which claims to be from a particular bank. The customer is asked to call back to activate his card for some reason. If he calls back, he will either reach an automated service or speak to an operator who will ask for his card number, expiry date, PIN and three-digit verification code. Some or all of this information will be enough for the scammers to use for some online purchases without permission.
  
  

Why the Scam Works

• Those customers who are taken in by the scam usually believe the call to be genuine because the caller "knows" their name or that they have a card from a particular bank. In reality, the scammers simply call as many people as possible, not worrying that most of the calls will be to people who aren't with the stated bank and will thus know it is suspicious. The scammers may have acquired the customer's name from a legitimate source such as public records or a marketing database.
  
  

Genuine Calls

• A legitimate financial institution will not initiate a call requesting sensitive financial information. Even when taking such information after receiving a call from a customer, a bank will not ask for a PIN. Some card providers will contact a customer when they detect suspicious activity on an account, but such calls will only involve asking the customer to confirm whether the suspicious transactions are genuine.
  
  

Text scams

• It has been reported that text-message based scams are on the increase. These usually involve a customer receiving a text message asking them to call their bank on a particular number, usually an 800 number. As it is the customer calling the bank and not the other way round, this can create a false sense of security. The safest thing to do with such messages is to visit the bank's website and check for the listed contact number there, rather than phone the number on the message. Another option is to search online for the listed number as this may uncover pages detailing whether it is a scam.
  
  

If it's too late

• If you have already responded to a phone call or text message and provided information but now suspect it may be a scam, you should immediately contact your bank. Doing so can help limit any liability and give you peace of mind about your security. Failure to do so may expose you to liability for fraudulent use of your card if it is determined you acted recklessly.