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June 26 – The Week in Phone Fraud

TWIPF2This week in phone fraud, hacking email using phone verification and scammers impersonating bank fraud warnings.

This week SC Magazine issued a warning about a new phone scam that requires only a victim’s email and phone number. Attackers go to an email login page, enter the target’s email address, and then clicks the link meant for users who have forgotten their passwords. The attacker chooses the option to text a verification code to the target’s phone, and makes a follow-up call or text to the target explaining that unusual activity has been detected on the account and the target should respond with the verification code.

On Monday, The Telegraph reported on another phone scam, currently popular in the UK. Scammers are impersonating banks, calling consumers to tell them fraud has been detected in their account and to move their money into a so-called “safe account.” UK police estimate attackers have stolen £23 million in the past year with this scam.


Full Breakdown of This Week’s Phone Fraud News

PYMNTS: Can Fis Get In Front of Fraud? – Be proactive. Monitor across channels. Be vigilant. The motherhood and Apple Pie of fighting cybercrime. But Fiserv’s VP of Risk Solutions, Patrick Davie, says that empowering consumers could be the FI’s ticket to getting in front of fraud.

We Live Security: Phone Scams: Increasing Numbers, Wider Scope – Pindrop reckons that the top 25 consumer-oriented scams between them account for more than 36 million scams per month in the US, out of a total of 86.2M. Frequent readers of this blog will not be surprised to hear that 8M of these calls are tech support scams.

Pindrop Blog: Data Science: How Do We Get Started? – In this post I will be digging into a specific example relating to the situation when a data scientist is presented with data to explore. Specifically, we will be looking a dataset from a calling card company that was experiencing issues with fraud.

New Hampshire Business Review: Preparing for a data breach – As organizations build their response team and create their plan to respond to a data breach, they also need to be developing a foundation to protect against the techniques cybercriminals use, such social engineering over the phone (also known as vishing).

Retail Fraud: US call centres see 30% rise in phone fraud – Phone fraud continues to threaten enterprises across industries and borders, with large financial institutions’ call centres exposed to an average of more than $9 million in potential fraud each year. Retail institutions have seen an increase in phone fraud.

Retail Technology Review: Pindrop Security reveals financial and retail institution call centres see 30 per cent rise in phone fraud – For the report, Pindrop analysed several million calls for threats using the company’s patented Phoneprinting technology and Phoneypot monitoring technology. The research found a 30% rise in enterprise attacks and more than 86.2 million attacks per month.

eWeek: From VOIP to Robots: Modern Tech Changes Phone Fraud Landscape – Phone fraud is not a new phenomenon, yet modern technologies, such as voice over IP (VOIP) and e-commerce, help make it easier for attackers to exploit victims. A recent report from Pindrop sheds new light on the current landscape for phone fraud.

SC Magazine: Attackers compromise email accounts using password recovery scam – What makes this social engineering phishing attack genius is that this kind of attack requires no hacking skills. Anyone can accomplish it by having your email ID and phone number which makes the attack quite serious in its nature.

Express: Elderly being tricked into moving savings into fraudsters’ accounts – Fraudsters con victims into believing their accounts are insecure and persuade them to transfer all their money into new “safe” accounts. The victim is warned not to reveal the reason for moving their money to call handlers because they could be under investigation.

CNP: Call-Center Fraud Rose 30% in 2014 – Fraud attempts aimed at U.S. call centers serving retailers and financial institutions rose 30 percent from 2013 to 2014, according to a recent report from Pindrop Security. The provider found that the call centers averaged one fraud attempt for every 2,200 calls.

Infosecurity Magazine: Hanging on the telephone – It’s almost as if we have all gone back to the 1990s. The next US presidential election will almost certainly be fought between Bush and Clinton. TGI Friday and The Crystal Maze are to be resurrected on UK TV. Oh and mobile phones are bad for you.

Amarillo Globe-News: When chip cards go mainstream, other fraud skyrockets – We’ll finally get chip-enabled payment cards in the US … and then what? Experts expect other types of payment fraud to skyrocket. That’s what happened when other countries introduced the more secure EMV chip cards in point-of-sale processing networks.

The Boston Globe: Beware of IRS phone scam seeking money – These types of scams rose by 2,300 percent in 2014, according to the Federal Trade Commission. In the most recent monthly scam analysis by the state Office of Consumer Affairs and Business Regulation, the IRS call was by far the most frequently reported.

CIO: What the FCC’s new robocall rules mean for your company’s marketing efforts – When a phone number gets reassigned, marketers must stop calling the number after one call. Further, people listed among the contacts of a particular consumer cannot be assumed to give consent to receive robocalls from third-party applications.

TIME Money: Our National Robocalling Nightmare May Soon Be Over – Despite heavy lobbying from multiple industries on the pro-robocall and pro-spam side, the FCC ruled to uphold and clarify the Telephone Consumer Protection Act, while also bolstering the protections offered by the Do Not Call Registry.

Engadget: FCC: Telcos can block robocalls and spam texts for you – In a 3-2 vote, the commission has passed a proposal that makes it perfectly legal to stop automated calls before they reach consumers. Some phone companies tell subscribers that they can’t do anything about the problem, because they’re required to connect every call.

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