Customers at HSBC have been warned after criminals used a successful ploy.
HSBC cautions that the latest trick being employed by thieves allows them to go on internet shopping sprees using other people’s money.
Fraudsters are fooling consumers into divulging their banking passcodes, allowing them to spend their money for online shopping, according to the bank.
People around the country are being reminded not to divulge their one-time passcode (OTP) to strangers after an uptick in such scams.
This month, the Royal Mail has issued a warning about a significant change in parcel collection.
Scams involving passwords grew by 25% between August and March.
When using their card online, they may be requested to enter a passcode to complete a transaction.
The code is usually texted to the customer, who can then use it to authenticate themselves on the retailer’s website.
However, HSBC has warned that thieves are calling clients and asking an OTP while posing as representatives from banks or other reputable organizations.
They can then create a transaction using this code.
According to the bank, over 3,000 cases of successful OTP fraud have been registered in the last six months.
Scams frequently begin with a phony SMS message, deceiving consumers into inputting their credit card information, before scammers contact the victim again and seek the OTP code.
“If someone phones you out of the blue and asks for your one-time passcode, hang up right away,” said David Callington, head of fraud at HSBC UK.
Customers will receive a warning in messages containing their OTP, asking them not to share the code with anybody, even bank personnel or the authorities, according to HSBC UK.
Instead of obtaining an OTP, customers can choose to authenticate transactions on the bank’s app.