Wednesday, May 04, 2016
Dubai: In an era where high-tech thieves are hacking into bank servers and stealing customer data or defrauding central banks using manipulated SWIFT transactions, old fashioned scamsters are giving their new-generation counterparts a run for their money.
Armed with the age old magic pen (with erasable ink) they are reportedly making a comeback with vengeance in the UAE, according to banking industry sources.
A number of banks have confirmed that there have been isolated cases of cheque manipulation in the recent past and are warning customers to be aware of the dangers.
Yesterday RAKBank warned its customers of fraudsters armed with magic pens posing as bank representatives.
“In our effort to provide you with an environment of safe and secure banking, we would like to inform you about a new ‘Magic Pen’ method used by fraudsters recently, posing as bank representatives to dupe customers,” Ian Hodges, managing director of Retail Banking at RAKBank, wrote in an email.
Typically these fraudsters approach unsuspecting customers as sales representatives of banks selling credit cards and loan products. Once the sales pitch is successful, they ask customers to complete the loan/credit card applications and provide a blank signed security cheque wherein the imposter fills up the details on the cheque in their presence using his magic pen.
Subsequently, the details of beneficiary and amount in the cheque are altered since it was filled up with the magic pen, which allows the details entered to be erased without a trace. The cheque is then encashed from various banks using third parties.
Bankers said fraudsters armed with magic pen and gift of gab could appear in the form of bank sales agents, insurance representatives, bill collectors, real estate agents or any type of direct marketing executives who collect payments in cheques.
While businesses all over the world spend huge sums to combat cyber-crime, KPMG’s latest fraud barometer shows fraudsters targeting individuals and families jumped 300 per cent across the UK in 2015.
What should be done?
To avoid becoming victims of such scams, people can take a few precautions.
* Before handing over a cheque the identity of the representative should be cross checked with the photo identification. In case of suspicion, a cheque should only be handed over directly to the beneficiary.
* Never issue a blank cheque.
* Please fill in all details in the cheque including the name of the beneficiary.
* Always use one’s own pen to draw cheques and never the pens provided by another party to fill in details of the cheque.
* When in doubt contact the beneficiary on their land line and confirm that the representative is indeed genuine and with the institution he claims to represent.
By Babu Das Augustine Banking Editor
Gulf News 2016. All rights reserved.
