2024-12-05 | Awas Modus

Beware! Recognize the Common Types of Fraud in Banking

Fraud, which is referred to as “scam” or “deceit” in Indonesian, is a deliberate act of deception intended to benefit the fraudster at the expense of the victim’s rights.

In the banking context, fraud is a financial crime aimed at achieving unlawful financial gain. Such fraudulent activities can be carried out by both individuals and organizations, ranging from small-scale schemes to large-scale operations.

Common Types of Fraud in Banking

There are various types of fraud that frequently occur in the banking sector. Here are some of the most common ones.

1. Account Takeover (ATO)

Also known as account takeover, this fraud happens when a fraudster gains control of an online account, often by using stolen personal information. Fraudsters have various tricks up their sleeves to pull off an ATO.

  • Phishing Attack. This type of fraud involves sending an email, text message, or communication through a chat application to the victim. The message contains a link that directs them to a fake bank webpage designed to steal their personal banking information.
  • Social Engineering. This fraud is carried out by manipulating the victim’s emotions, such as pleasure or fear, during the interaction. The goal is to psychologically disturb the victim, making them more susceptible to following the fraudster’s requests.
  • Call Center Fraud. Here, a fraudster contacts a bank’s official call center, posing as a legitimate customer in order to gain access to the victim’s account or perform harmful actions on it. Typically, the fraudster possesses personal information about the victim, which enables them to deceive the call center representative. However, implementing biometric technology can help minimize these kinds of fraud.

2. New Account Fraud

This is also referred to as account creation fraud, account opening fraud, or fake account fraud. Fraudsters open accounts with the intent of committing fraudulent acts by using stolen identities or fabricated identities belonging to victims. They usually get a hold of the victim’s personal information from the dark web.

3. Money Laundry

Money laundering refers to the process of making illegal or “dirty” money appear legal or “clean” by passing it through a series of transactions involving foreign banks and/or legitimate businesses. There are three stages in money laundering:

  • Placement. Money is introduced into the financial system in large but discreet amounts to avoid drawing attention.
  • Layering. Funds are transferred to various locations to create distance from their original sources.
  • Integration/Extraction. Fraudsters assimilate the funds into the economy by purchasing goods and services, investing in real estate or business ventures, or hiring fake employees.

4. Payment Fraud

Payment fraud occurs when individuals commit various types of fraudulent or illegal transactions. This includes activities such as cash withdrawals and deposits, checks, online payments, debit card transactions, bank transfers, and loan payments. Some of the most common examples include online store scams and fake ATM or BCA mobile receipt fraud. 

Banking Fraud Frequently Encountered by BCA Customers

As one of the most reputable banking brands globally and the largest private bank in Indonesia, it’s not surprising that many fraudsters target BCA and its customers.

Reports from customers reveal numerous instances of fraud. A common theme among these scams is that fraudsters impersonate official BCA representatives.

This can involve creating fake social media accounts that resemble official BCA accounts or making phone calls from numbers that appear to be official BCA numbers, claiming to be customer service agents or bank officials.

To carry out scams, they often manipulate victims’ emotions by promising enticing rewards, such as discount vouchers, gifts, cashback, and special promotions from BCA.

However, some scams use fear tactics, claiming your credit card has been used for illegal online transactions or saying that interbank transfer fees are rising to IDR150,000 per month. If victims do not comply with the fraudster’s demands, they are often instructed to fill out a link containing personal data.

If you believe you have been a victim or suspect fraudulent activity, it’s crucial to report it immediately to BCA through the channels:

  • Halo BCA via the myBCA app or by calling 1500888 (no prefix)
  • WhatsApp: Bank BCA 08111500998 (verified account)
  • Website: www.bca.co.id
  • X: @BankBCA dan @HaloBCA (verified accounts)
  • Instagram: @GoodlifeBCA (verified account)
  • Facebook: @GoodliifeBCA dan @BankBCA (verified accounts)

Always be alert and smart with your banking activities to avoid falling into scams. Regularly visit the bca.id/awasmodus page to stay informed about the latest scam tactics.