Greg's Corner

Latest Bank Scam Targets Card Chips

By Greg Collier

Chip-enabled debit cards are designed to provide an extra layer of security for consumers, but scammers are now exploiting this technology in a startling new scheme that could drain your bank account. If you’re not careful, you could fall victim to this sophisticated fraud that combines phishing, spoofing, and clever social engineering.

Here’s how the scam unfolds. It begins with an email or text message that appears to be from your bank, alerting you to an issue with your debit card. This message is quickly followed by a phone call, supposedly from your bank’s customer service team. Thanks to spoofing technology, the call looks legitimate, displaying the actual phone number of your bank.

The caller claims there’s a problem with your card and instructs you to cut the card in half for security reasons, but keep the chip intact. They then explain that a bank representative or courier will come to your home to collect the chip for further investigation or replacement. When the ‘courier’ arrives, they use subtle but effective social engineering tactics to convince you to share your PIN. Once they have both the chip and your PIN, the scammers can easily install the chip into a new card and access your funds.

This scam is particularly alarming because it leverages trust in your bank and creates a false sense of urgency. However, it’s critical to remember one key fact, no legitimate bank will ever send a courier to your home to address issues with your account. Any such request should be an immediate red flag.

This isn’t the only scam involving so-called ‘couriers’. Fraudsters often use individuals posing as couriers to execute other schemes, such as fake lottery winnings or fraudulent purchases. In some cases, they may even recruit unwitting ride-share drivers to pick up and deliver items, adding another layer of confusion and detachment from the actual crime.

To protect yourself, never share your PIN or other sensitive information with anyone, even if they appear to be from your bank. If you receive a suspicious call or message, hang up and contact your bank directly using the number on the back of your card. Additionally, never hand over your card chip or any other personal banking materials to someone claiming to be a representative of your bank.

By recognizing the warning signs and refusing to engage with fraudulent requests, you can safeguard your finances and avoid becoming a victim of this alarming new scheme.