Latest Banking Scam

[Ping898]

Here's a new one the scammers are using:

1) generate a series of random ABA routing and account numbers
2) use ACH transfer to make a $0.01 deposit to each of the accounts
3) if the deposit succeeds, they have a valid account number
4) use direct debit to steal the victim's money


Original story: http://www.af.mil/news/story.asp?id=123049572

An Airman assigned to the 50th Mission Support Squadron here recently fell victim to a new banking scam against which vigilance is the only defense.

....
The scammers apparently generate random routing and account numbers, into which they try to deposit one cent, Mrs. Thorndyke said. Once the one-cent deposit clears, the perpetrators know the account is active and begin to withdraw funds from the account.

Based on the call traffic, Mrs. Thorndyke said the withdrawals seemed to take place near the beginning of the month. Some people had only seen a single withdrawal from their accounts. In Airman A's case, however, the perpetrator had struck several times. His total loss was more than $600.

......
Airman A contacted his bank, the Peterson AFB branch of 5-Star Bank. Vickie DuVal, the bank manager, refunded the amounts and recommended Airman A open a new bank account to stop the fraudulent withdrawals.

"This was the first time I'd seen this," Ms. DuVal said.

Because the transfers clear electronically, people are not asked to verify the transactions. However, they may dispute the transactions once they notice what's happening.

"For Automated Clearing House or ACH transactions, the customer can fill out a dispute form, and we can reverse the transaction," Ms. DuVal said.

Airman A recommended people check their accounts frequently. He now checks his balance and transactions daily.

"Look for peculiar deposits," he said. "Make sure you know whose depositing and withdrawing from your account."

 

[OUMoose]

I'm kind of surprised a brute-force style attack like this hasn't caught on sooner. :idunno:

 

[MBuzzy]

I've often wondered about that - what are the chances of getting a good account # I wonder....

I just had about 400 withdrawn from my account because the bank issued checks with my account # on them to someone else.

 

[Rich Parsons]

I've often wondered about that - what are the chances of getting a good account # I wonder....

I just had about 400 withdrawn from my account because the bank issued checks with my account # on them to someone else.

Here is the sad part, it also works with credit cards. (* I had an issue years ago with Singapore *)

Once they find a valid account with the right routing number thye now have a place to start to get more. The first is like a seed into the crypto of the system.

Of course there are obvious ways to get the first one without the brute force attack. (* Think about it. *)

 

[RandomPhantom700]

Here's a new one the scammers are using:


3) if the deposit succeeds, they have a valid account number
4) use direct debit to steal the victim's money

What I'm not getting (sorry to ask if it's obvious to everyone) is how you get from step 3 to step 4. Does the electronic clearing go without the scammers knowing your PIN or authorization code (the 3-digit number on the back of your credit/debit card)?

 

[Ping898]

What I'm not getting (sorry to ask if it's obvious to everyone) is how you get from step 3 to step 4. Does the electronic clearing go without the scammers knowing your PIN or authorization code (the 3-digit number on the back of your credit/debit card)?

Yes you don't need those for the ACH to work....this of businesses that now take your checks and turn it into an electronic debit as opposed to cashing the check...

 

[Kacey]

What I'm not getting (sorry to ask if it's obvious to everyone) is how you get from step 3 to step 4. Does the electronic clearing go without the scammers knowing your PIN or authorization code (the 3-digit number on the back of your credit/debit card)?

Electronic clearing doesn't use the credit/debit card number; it uses the routing number and account number that identify your account to your bank. If you have a checking account, look at the numbers on the bottom of your check - or look at the image at the end of this post. The numbers to the left, between the oversized colons [:] are the routing numbers; the numbers in the middle are the check number (they match the number in the upper right of the check), and the remaining numbers are the account numbers. Some banks reverse the account and check number, but that's about all the variation you'll see. With the correct numbers, scammers can then debit your account without needing your card number or the 3-digit code on the back.