Credit Card / BNM Scam - How it works and how to avoid it

in #scam7 years ago (edited)

When this family member came running up to my floor huffing and puffing, I knew something was wrong. 

Then when he started to described what had happened, right off the bat I knew immediately he fell victim to what I call, the CC (Credit card) / BNM (Bank Negara Malaysia) scam.

What is the CC/BNM scam?

  • It starts with a phone call from an automated voice message, informing that a sum to the tune of a few thousand Ringgit is currently being swiped using a card with your name on it. You are then automatically transferred to a "bank officer" to authenticate the amount being charged.
  • The person on the other line insists to verify you first (IC number, mother's maiden name, name of the place you were borned etc. etc.) and you dutifully provided the requested information.
  • You inform the "officer" that you did not make that charge, and he/she concludes that your identity is being used in a fraudulent transaction, possibly adding that thousands of Ringgit of charges have also been made under your name for the past few months and are overdue.
  • The "officer" gives you a number to call, telling you that it is the contact number to report your case to Bank Negara Malaysia (Malaysia's Central Bank).
  • The call to that number will be answered by some guy or lady who claims to be a Bank Negara staff. You explain what just happened, and he/she will tell you your case will be forwarded to a BNM investigation officer who will be in contact you, and gives you a "report number".
  • Shortly, you will receive another call shortly from someone claiming to be a BNM officer. Once again you explain what happened, and he/she will tell you that you are a victim of some sort of fraud activity and all your banking accounts are at risk.
  • He/She will tell you that in order to safeguard your interests, you need to transfer all your money to an account authorized by BNM. The "BNM officer" might tell you that they will monitor your accounts to make sure there are no further fraudulent activity, then return the money to your accounts.
  • He/She will also warn you that since your case is still under investigation, you are forbidden to tell anyone about this.
  • You transfer all you money to the account provided by them, and that's the last time you will hear from them....or see your money.

image credit : gfycat


That is exactly what happened to my family member, who has transferred most of his money from his own bank accounts to two accounts belonging to strangers.

I drove him to the nearest police station, while he frantically calls up his banks to try to stop the transfers. Alas, it was too late, the monies were gone, all of it.

We spent a few hours making the police report and speaking to the police IO (investigating officer....a real one) in the financial crime department. He assures us that the money is gone, and that the amount my family member lost is actually considered low as he points to a few folders and read to us the amount of money involved in those cases....

"four hundred thousand, seven hundred and sixty thousand, eight hundred and forty thousand......one point four million...."

The point being, these scammers are making a killing through this scheme, and every day many people still fall for it despite repeated advisories issued by banks and authorities, as well as social media shares. Even the account holders of those accounts where the money were transferred to were actually victims too, as they have no idea their bank accounts were being misused.

Here's a recent example that was reported to the press:

http://says.com/my/news/accountant-loses-rm500-000-in-elaborate-credit-card-scam-by-fake-bank-negara-officials

In the end, there was nothing much we could do other than come to terms with the  massive loss of money my family member has just suffered, and chalk this up as a very, very expensive lesson. In the aftermath, he had to go to every one of his banks to report the case and change his banking credentials as they have been compromised.

-------------------------

Be educated, learn to spot inconsistencies or anything illogical that is being peddled to you, for example:

  • No bank will ask to verify you if they initiated the call. They will only verify you if you were the one who called them.
  • If you doubt the person on the other line is really calling from the bank, ask for his name and department/branch, tell him he will call you back and then hangup. Now search for the bank's actual customer service phone number or branch phone number (either from the official website, behind your ATM/credit card or your bankbook), call that number and ask to be connected to that person by stating the department and branch.
  • Bank Negara Malaysia is not a bank, they are a regulatory body for the financial organizations in the country. They will not ask you to send money to them. When in doubt, call BNM's customer service at  1-300-88-5465 or  603-2174-1717  from overseas.
  • Inform you close friend or family that you have received a call asking you to send money somewhere. Ask for advice from clearer heads.
  • DO NOT TRANSFER MONEY INTO A STRANGER'S ACCOUNT.

Spread the word to your family and friends, help keep them from getting scammed.

Just in case this post made you depressed, here's a picture of a cat I encountered while waiting to make the police report.



Sort:  

Yes, that cat picture will make us all feel better. Love the idea of a cat in a police station, actually! I'm so sorry about what happened to your relative. Thank you for doing something to help others avoid the same trap.

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We live and learn, hopefully more will learn from his mistake.

Thanks for reading!

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Thanks for the heads-up. We all have to be careful in giving out information online or on the phone.

Indeed. Be very care what personal information you share on the internet and through the phone.

This is truly a sad experience to your family member. Scammers are very manipulative and has a way of making you say yes without even thinking. Thank you for sharing this. I will surely keep this in mind.

Yep, it seems they are always one step ahead.

If in doubt, better to err on the side of caution.

Copy that!

Hello, today you have to be very careful because there are so many scammers everywhere. Thanks for your post, you have my support. Greetings.

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This is a very serious issue and I am very sorry for your friend's loss. Thank you for writing this though as it will serve as a very important reminder not to give out private informations lightly.

I have had a bank call me once to ask me to deposit RM3000 into my savings account to gain more interests. Though it was not a scam, it was a promotional offer, I had to practise precaution so as to make sure that they knew who they were calling instead of just randomly selecting "victims"

Great Reminder!

Yep, better safe than sorry I say. All it takes is a slip of the tongue or a careless mistake and one could give away a lot more than one bargained for.