theguardian.com
New Digital Wallet Fraud Employs Sophisticated Tactics
International criminal gangs are using a sophisticated new fraud to transfer victims' bank cards to their digital wallets, enabling online and in-store purchases after tricking victims into providing their bank details and a temporary password.
English
United Kingdom
EconomyCybersecurityCybercrimeFinancial FraudOnline ScamsBanking SecurityPayment SecurityDigital Wallet Fraud
Cyber Defence AllianceUk FinanceGoogleAppleSamsungHomebaseFoot LockerZara
Garry LilburnDianne Doodnath
- What is the core mechanism of this new fraud, and what are its immediate consequences for victims and financial institutions?
- A sophisticated new fraud involves criminals transferring victims' bank cards to their digital wallets, enabling online and in-store purchases. This scam, used by international gangs in the UK, North America, and elsewhere, leverages deceptive online offers or text messages to obtain victims' banking details and a temporary password.
- How do the criminals initially lure their victims, and what specific techniques do they employ to gain access to the victims' bank cards?
- The fraudsters use the victim-provided one-time password to add the victim's card to their digital wallet (Apple Pay, Google Pay, Samsung Pay), then make purchases, sometimes waiting months to minimize detection. This method is alarming experts due to its scale and the resources criminals invest.
- What are the long-term implications of this sophisticated fraud for the security of digital payment systems and what measures can be taken to mitigate its impact?
- This fraud highlights the evolving tactics of cybercriminals and the vulnerability of digital payment systems. Future impacts could include increased regulation of digital wallets, improved fraud detection technologies, and heightened public awareness campaigns emphasizing the importance of OTP security. The delay in spending suggests sophisticated strategies to evade detection.
Sustainable Development Goals
Reduced Inequality Negative
Indirect Relevance
This new fraud disproportionately affects vulnerable populations who may be more susceptible to scams and less likely to have the resources to recover from financial losses. The sophisticated nature of the scam highlights the inequality in access to financial resources and digital literacy, exacerbating existing inequalities.