Financial fraud happens when someone takes money or gain from another through unethical, illegal and deceitful means, damaging one’s financial well-being.
These days, however, fraudsters have become more sophisticated in their ways to pass off as legitimate. For instance, the banking industry is no stranger to fraudsters who use banks, merchants and other businesses to take advantage of innocent consumers. It can be terribly confusing, as scammers have also been faking websites and mimicking the design and language of different banks and online stores in the Philippines. Let’s fight fraud with Scam Proof and Metrobank fraud awareness.
With the rapid shift in online transactions, there has been an increase in cases of financial fraud.In an effort to further improve the safety of Filipinos and protect consumers from online banking fraud, Metrobank–alongside the Bangko Sentral ng Pilipinas and other banks and companies from various industry sectors–launched Scam Proof,a financial education initiative that provides a platform for Filipinos to prevent fraud. Scam Proof also serves to build consumer awareness about cybersecurity and ultimately aims to ensure a safe payment ecosystem for consumers.
Metrobank’s Fight Fraud, meanwhile, provides people with tips, news, and alerts that can help fight against scammers and fraudsters.
Different types of fraud in the Philippines
Here’s a quick rundown of the different kinds of fraud:
Online banking fraud- It is the illegal use of the internet and digital technologies to commit theft and obtain or transfer money from different accounts from or through a financial institution such as a bank. Once compromised, an account can be used by cybercriminals to commit other forms of fraudulent activities.
Phishing- It is the malicious practice of using emails to obtain private data and sensitive information, such as usernames, account passwords, and bank details, through false pretenses. These days, however, phishing is no longer confined to emails as fraudsters also use this in malware. Oftentimes, cybercriminals using phishing tactics pretend to be trustworthy authorities, such as banks and government organizations.
Identity theft- It is the spurious use of someone else’s personal information to commit fraud, such as taking out a loan in their name or using stolen personal information to perform online transactions without the victim’s knowledge. The information is often obtained through phishing activities.
Spoofing- It refers to the phishing tactic that utilizes a fake website that is made to appear as if it were the legitimate site or an extension of the real one. Cybercriminals use this to access sensitive information stored online like passwords, emails, bank accounts, and credit card details from unsuspecting victims.
Vishing or call scams- Preys on human weakness through social engineering. The scammer often has the basic information on hand that makes them sound like a legitimate representative from an institution tricking their victims to reveal their sensitive and bank information as well as their card details.
Text scams- These often ask you to transfer money, credits, or prepaid cellphone load for a number of different reasons. These text scams use fake creative stories, such as the scammer posing as a relative whose money supposedly got wrongly deposited or credited. Some are easier to spot because of poor writing, while others sound like actual messages from banks or institutions. Smishing is a form of text scam that combines the practice of phishing through SMS or texting services.
Credit card and ATM skimming- It is the illegal act of copying ATM and credit card information through the use of a card reader, which appears as if it were attached to an ATM and records card numbers and PIN codes. Fraudsters use this to counterfeit cards, make unauthorized withdrawals, and maliciously transact online.
Ponzi or pyramid schemes- They are nothing new, but they resurface in different forms, purporting to be investment opportunities. With the shift towards digitization, Ponzi schemes appear to be online businesses with partners having fake profiles and only communicating over messaging platforms. After a victim invests a significant amount, these partners’ online accounts disappear, leaving the victims with no one to chase.
Advance-fee or Nigerian scams- They are similar in nature to text scams, but are often done via email. The plot centers on a narrative that to obtain a large sum of money, the target has to transfer a relatively smaller amount.
Budol-budol scams- These rely on a target’s unawareness and innocence, wherein the fraudster shows the potential victim a large sum of money and gets the target to hand over their cash, cellphones, and other personal property.
Dugo-dugo scams- These use trustworthiness to prey on a target through a false emergency, oftentimes detailing a kidnapping or accident wherein a large sum of cash is required. The potential victim is made to transfer money, hand over jewelry, cash, or anything of pawnable value to secure the health and safety of the victim’s loved one.
One of the easiest ways to spot a fraud is to check the offer. Scammers often offer big rewards, such as gadgets, cars, or cash rewards, to hook in a victim. They also copy the verbiage and format of official messages, making them believable. So, if the offer seems too good to be true, then it is more than likely to be a scam. Whenever you receive a call, text message, or email that usually requests financial information or help, do not entertain it right away. Verify first if this is a legit request by contacting the official number of your bank or institution.
Concrete steps to fraud detection and prevention
Through an educational platform that consolidates all pertinent information, Scam Proof is just one of the many initiatives that the banking industry has put in place to improve cybersecurity and protect your money from fraud. Online banking fraud and other scams can best be prevented with awareness–knowing what to do at the right time–because they can happen to anyone at any moment.
Trust that your bank is also protecting your hard-earned money with advanced security solutions. For instance, the Metrobank Mobile App allows you to monitor your account’s transactions anytime and uses two-factor authentication to add another layer of security.
For more information on how you can help, feel free to visit https://www.scamproof.ph/ and Metrobank’s Fight Fraud page, or send us a message today.