SIM Swap Fraud: How It Could Affect Your Banking Transactions?

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Mobile Phones have made banking easy on fingertips. And for most of the banking transaction we receive One Time Password (OTP) to make the transaction secure.

As technology is making banking easy, there are equal chances of a fraudster making use of the same technology.

There are various risk associated with banking with phishing, cyber stalking, identity theft, card skimming, vishing and the latest one to the list is SIM swap fraud.

SIM Swap Fraud: How It Could Affect Your Banking Transactions?

What is SIM Swap Fraud?

Sim Swap is a method where fraudster replaces your SIM with new SIM card which is issued on your name and your mobile number.

With the help of new SIM, the fraudster will be able to complete banking transactions since he will be able to get OTP & alerts which are mandatory for doing any financial transactions through a bank account.

How does SIM swap Work?

Fraudsters will obtain all the personal details required for any banking transactions usually phishing attack. They then proceed to create accounts to which money will be transferred. It can be done by creating new account by using a fake ID.

SIM card is very vital in any banking transactions as banks send the OTP via SMS to verify the transaction.

Fraudsters can get duplicate SIM from the service provider by stating loss of mobile or damaged SIM card.

They can then proceed to create beneficiary in the bank account and transfer the amount.

Fraudsters can create many accounts using fake IDs and withdraw the money from the beneficiary account immediately.

When the fraud is happening, the original SIM holder will not be aware of anything as his SIM would be blocked.

How to protect yourself?

  • Use additional information and add layers of security features when you do banking transactions.
  • Investigate when you are not receiving calls and messages for a long time.
  • Do not share the correct or provide complete personal information on social media.
  • Individuals can also keep a separate mail ID for banking transactions.

Story first published: Wednesday, September 30, 2015, 11:25 [IST]
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