Visa Annual Report Warns of Vigilance Against Latest Sophisticated Scams Including Digital Skimming
In the past six months, financial fraud through physical consumer transactions in shopping malls has become rampant. Criminals exploit consumers’ personal information exposed during payment to purchase gift cards and physical goods, or to steal card numbers for transfers.
Traditional pickpockets steal personal belongings and physical credit cards. The new form of theft combines traditional pickpocketing and online fraud, not only stealing physical cards but also digital assets and cryptocurrencies, leaving consumers completely robbed.
According to a recent press release from Visa, consumers who inadvertently expose digital personal information on their phones during payments have suffered financial losses due to fraud. As the end-of-year shopping and travel season approaches, consumers are advised to be vigilant in protecting their personal information and digital wallets in crowded places such as airports, restaurants, and shopping centers.
Michael Jabbara, Visa’s Global Anti-Fraud Director, told Fox News that consumers should be cautious and guard against “digital pocketing.” In this type of fraud, criminals approach consumers using mobile payments and surreptitiously access the digital wallet on their phones without the user’s awareness.
Visa’s annual report reveals new forms of sophisticated fraud such as:
Mobile and digital online payment fraud
New forms of fraud include the theft of consumers’ wallets for mobile payments on their phones. Fraudsters also engage in phishing scams targeting users who do not use two-factor authentication, using AI-generated emails to steal passwords for online fraud.
Fraudsters create fake airline or booking websites, using false discount promotions to lure consumers into making purchases. They may even send fake flight cancellation emails to trick consumers into providing payment information for booking new flights.
Impersonating officials for fraud
Fraudsters impersonating government officials and public servants have been rampant globally. Many consumers have been scammed by fake IRS, FBI, and postal officials. In the first three months of 2024, the total illegal amount of money obtained by impersonating U.S. officials exceeded $20 million, with an average loss of $14,000 per consumer.
Gas station fraud
Fraudsters first authorize small amounts of fuel with an account and then use an account with insufficient funds for large fuel purchases. This type of fraud targeting gas stations has been rapidly spreading in the United States, the Caribbean, the Middle East, and Europe.
Enumeration attack fraud
Criminal internet fraudsters hack into business payment systems and use large-scale enumeration and mathematical deduction to determine the scale and speed of the payment system to obtain account information. This type of fraud, called “enumeration attack,” mainly targets restaurants, government agencies, and charity organizations.
Password supply fraud
Fraudsters illegally obtain financial verification codes and then cash them out under the supervision of financial institutions. Visa has noticed that internet criminals intentionally delay cashing out after obtaining passwords to evade detection by financial institutions.
Ransomware fraud
Ransomware attacks on cloud and web hosting services and third-party suppliers have increased by 24%. Third-party suppliers are the main targets of criminal fraudsters, affecting an estimated 2,620 organizations and 77 million people.
How the general public can guard against digital pickpocketing
Travelers on vacation should remain vigilant in crowded places where attention is often distracted and personal belongings are easily stolen. Consumers can set up instant notification alerts for their accounts, receiving instant communication reminders for each transaction, including the location and amount of the transaction. If consumers notice suspicious or unidentified transaction amounts, they should immediately report them to the issuing financial institution to protect themselves and others from harm.
