Fraud alert: Handing over card to false delivery person results in drug-related issues

Fraud alert: Handing over card to false delivery person results in drug-related issues

Scammers Impersonating Bank Employees and Law Enforcement Officers: A New Social Engineering Scheme

VTB specialists have uncovered a pernicious new scam involving social engineering, with fraudsters posing as bank employees or government officials to dupe victims into disclosing their bank card details. These details subsequently enable the scammers to withdraw funds not only from the victims themselves but also from other unsuspecting individuals.

The modus operandi entails the scammers contacting Russian residents, feigning identities as bank employees or law enforcement officers. By exploiting fears and invoking excuses such as unauthorized transactions, approved loans, or threats to the account, they coerce the victim to reveal their card's PIN and hand over the bank card to a purported courier for "verification." The PIN is requested during the phone call to be entered on the phone or on a special website via a link. Post the revelation, the scammers proceed to withdraw the victim's money through an ATM using the obtained PIN and employ the card to vitiate funds from other victims.

In addition to losing their own money, the victims inadvertently become "mules," unwittingly partaking in the criminal enterprise.

Dmitry Revyakin, Vice President of VTB and Head of the Corporate Interests Protection Department in the Security Department, remarked, "Scammers exploit people's trust by mimicking official organizations like banks and law enforcement. Their objective is to convince the victim to willingly hand over their card to maximize profits. It's crucial to understand that when you hand over your card to a 'bank courier' and share SMS codes, you're not just risking your money, but also becoming a link in a criminal chain. Scammers deliberately choose tactics to make victims, unknowingly, participate in cashing out funds from other victims. In the event of a compromised bank card, swift action can help prevent unauthorized use of funds by immediately blocking the card either by calling the bank's contact center or through online banking."

Mr. Revyakin further explained that the Russian banking market is actively working to thwart such dropper activity. VTB employs various methods such as real-time transaction monitoring, analytical tools, and collaboration with law enforcement agencies and other banks to combat them. To date, banks have discovered a significant increase in droppers, with over 148,000 droppers detected in 2024, which represented a 5.5 times increase compared to 2023. In a year, VTB thwarted over 1.5 billion rubles stolen from clients and recovered over 380 million rubles from dropper accounts returned to victims.

These measures are part of an ongoing effort to counter social engineering tactics related to bank cards as they pose a threat to the integrity of the financial system. To minimize the risk of falling victim, experts advise against disclosing card details, CVV codes, or similar sensitive information in response to phone calls or messages. Instead, victims should contact their bank directly via official channels in case of any suspicions and exercise caution against urgent requests to "verify" account details. Instant notifications of transactions through bank mobile apps, transaction limits, and alerts set up to monitor abnormal activity can also serve as useful precautions for clients.

1. The increase in droppers in the Russian banking market, as evidenced by VTB's observation of over 148,000 detected droppers in 2024, suggests a growing threat in the realm of banking-and-insurance, general-news, and crime-and-justice.
2. In line with VTB's efforts to combat social engineering tactics related to bank cards, it is advisable for financial industry professionals to implement safety measures such as real-time transaction monitoring, analytical tools, and collaboration with law enforcement agencies and other banks.
3. As scams involving impersonation of bank employees and law enforcement officers continue to pose a threat to the integrity of the financial system and personal finance, it is essential for individuals to remain vigilant when it comes to guarding their sensitive information, particularly in the context of finance.

Read also: