Pub. 2 2024 Issue 2

Debit card fraud is on the rise. It accounts for about 40% of all card fraud. Here’s what our SHAZAM fraud specialists are noticing and what financial institutions can do to protect their cardholders. SOCIAL ENGINEERING SCAMS ARE STILL COMMON Bad actors continue to use social engineering schemes to trick cardholders into providing their sensitive information or making fraudulent transactions. In these schemes, bad actors often claim to be a trusted financial partner or a representative of a well-known merchant. In their calls, emails or text messages, they will allege there’s a problem with a person’s card or account. These false narratives are meant to play on cardholders’ emotions to trick them into giving up their sensitive data, such as their card number, log-in credentials or a one-time password. Education is key in protecting cardholders from being caught up in these malicious attacks. Remind them to be skeptical of unsolicited calls or emails. Cardholders should avoid giving out sensitive information over the phone or via email. Financial institutions may need to verify personal information if a cardholder calls them, but never the other way around. Financial institutions should also review their internal verification processes. Pay attention to customer behaviors and listen to their responses. Empower staff members to investigate further if a cardholder request is unusual behavior from previous interactions. If their gut is telling them something is off, odds are they are probably right. FRAUDSTERS LURKING TO ATTACK BINS Cybercriminals are constantly looking to stay in the shadows to get their hands on cardholder information. The industry continues to see this behavior by fraudsters through BY RYAN DUTTON, SENIOR FRAUD OPERATIONS MANAGER, SHAZAM The Latest Fraud Trends and Prevention Best Practices CURRENCY | 9

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