Fight Fraud Together

What is Customer Fraud?

Fraud is a pervasive problem, with both organizations and customers needing to protect themselves from the act of fraudsters. Customer fraud refers to deceptive business practices that cause customers to suffer from financial or other losses. The victims are made to believe that they are participating in a legal and valid business transaction when they are being defrauded. Fraud against customers is often related to false promises or inaccurate claims made to customers, as well as practices that directly cheat customers out of their money. 

 

Why Does Data Security Matter?

As the value of personal data continues to increase, fraudsters continue to find new ways to access and expose this digital information. Financial institutions have witnessed publicized data breaches that does not always involve malicious hackers but rather a perceived unethical use of sensitive information using identity theft.

 

Given the unique nature of fraud risk and the extensive impacts that a fraudulent event can have, comprehensive awareness should be obtained to limit any negative impacts and we must be prepared to manage these risks and their potential impact in an effective and efficient manner.

 

How is Wall Street Exchange adhering to regulatory standards?

The Wall Street Exchange is committed to comply with regulatory standards on customer fraud awareness program and to safeguard our customers from external fraud risks. It sets forth our approach towards customer protection against fraudulent activities and emphasises preventive mechanisms to minimise fraud by establishing awareness and an effective complaints mechanism.

Types of customer fraud

Although the methods constantly evolve as scammers look for new ways to commit fraud and avoid detection, the following are the most attempted types of internal and external frauds

 

1. Identity Theft:

Identity theft can occur when the criminal gains access to, or the customers unknowingly provide personal information that includes name, EID number, bank account details and credit/debit card information. As a result, customer’s personal information is used to access their bank accounts to drain funds, open and use credit cards in their name, take out loans, use their health insurance to pay medical bills, and file a tax return to collect refunds.

 

2. Advance fee fraud: 

Customers are requested to pay a fee upfront, in advance of receiving any proceeds, money, stock, or warrants in order for the deal to go through. The deal may involve the sale of products or services, the offering of investments, lottery winnings, found money, or many other so-called opportunities and may try to fool investors with official-sounding websites and e-mail addresses, thus committing fraud.

 

3. Email account compromise: 

Criminals send a message that appears to come from a known source, making a legitimate request, such as the current company’s vendor where the customer works, might appear to send an invoice with an updated mailing address, or a home buyer gets a message from their title company with instructions on how to wire a down payment.

 

4. Elderly Fraud: 

The elderly are prime targets to schemes attributed to credit cards, sweepstakes or contests, charities, health products, magazines, home improvements, equity skimming, investments, banking or wire transfers, and insurance. The fraudster contacts the elderly and impersonates either their grandchild or a person of authority such as law enforcement, a medical professional or an attorney and describe an urgent situation or emergency requiring money.

 

5. Prize and Lottery Fraud:

Customers receive notification of winning a lottery or prize but need to send money to the lottery or sweepstakes office to cover taxes or administrative costs. This type of fraud often targets the elderly who do not recall entering any lotteries and originates with a phone call or postcard.

 

6. Fake Charities: 

Although the Company prohibits transactions to charities, customers might get contacted by charities that are not legit but try to impersonate genuine charities and ask for monetary donations for natural disasters and local tragedies. They are particularly prevalent immediately after a disaster when the news is dominated by an event.

 

7. Social Media scams: 

Social media platforms such as Facebook, Twitter, WhatsApp, and Instagram, are used to trick people into parting with money or revealing sensitive personal data and commit fraud. Social media scams have the potential to cause significant harm to customers in terms of financial loss, emotional wellbeing, and degradation of trust.

 

8. Employment fraud:

The fraudster sends an email for assured employment under the Group’s name and asks the customer to deposit a sum amount as a security deposit or expenses conducted for overseas employment and will be reimbursed in the salary amount.

 

9. Other digital scams: 

Clickbait scam is when a customer clicks on a link, which can unwittingly install malware onto their computer or be lured to a scam-related site.

 

10. ATM Fraud:

Fraudsters try to cheat you out of your money by trying to distract you to capture your Card or PIN details and installing a small camera to steal your details.

 

11. Data Privacy Fraud:

Fraudsters try every trick to make you share financial information through e-mail or phone calls or social media, sending you malicious links, which may download malicious content on your computer or ask you to download an App on your mobile, downloading the same can steal your data without your knowledge and your information can be misused to impersonate you and to obtain financial products or facilities

 

Security Tips

1. Do no click on email from strangers asking you to open a link

2. Never disclose personal information on social media

3. Fraudsters pose as exchange staff to gain your personal information

4. Never respond to messages asking for fees to process big winnings

5. Fraudsters pose as business contacts and ask you to transfer money to a different account

6. Never share your user ID or password with anyone

7. Avoid clicking on unknown links and refrain from downloading random apps

8. Keep your user ID and password secured

9. Use different passwords for different social sites

10. Limit your personal information on social sites

11. Pick a strong password and change it frequently

12. Look at the ATM for unusual signs or changes

13. Cover the PIN pad when entering your PIN

14. Do not respond to unsolicited calls or text messages

15. Remember, Wall Street will never ask for your confidential details

 

By staying alert and following the above-mentioned tips, you can steer clear of scams and keep your money safe.

 

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