How Not to Fall Prey to Fake Bank Alerts

 Omolabake Fasogbon

Scammers are constantly upgrading and refining their tactics, making tracking them difficult even for the smartest individuals. More recently, they have found a niche in fraudulent bank alerts, and not a few unsuspecting individuals in their different calibres have been ensnared in this web. 

Described as a deceptive text message or email that mimics a legitimate bank notification, often claiming a deposit or transfer has been made, this evolving threat is forcing many to rethink their trust in digital transactions 

Like technology that is enabling it, so also are criminal elements navigating around innovation on the scheme. 

This notorious crime enabled by alert spoofing apps and malicious websites further rides on the progress of the cashless drive that seems to have sat well with Nigerians. 

On the flip side, Nigerians, especially Small and Medium Enterprises (SMEs), are bleeding from the evil exploits this policy has engendered.  Indeed, banks and the nation at large are also counting their losses. 

Although, majority of these losses go unreported where victims tend to succumb to fate, a report by the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) in second quarter (Q2) of 2024 revealed  that Nigerian banks lost up to N42.6 billion to fraudsters, perpetrated mainly through fake alerts, stolen cards and ransom cash out, amongst others. 

Mrs. Dolapo Adeyemi, a POS operator in Lagos, was one among many who have learnt a lesson in a bad way. In pursuit of a N1000 profit, Adeyemi sadly lost both her capital and profit after paying N50,000 to a fraudster. 

“This man often comes in exotic cars virtually every Sunday to patronise me. At times, he takes N5000 or N10,000 cash, but this day, he came as usual and requested for N50, 000 cash. Since he has been a regular customer, I obliged even before he made a transfer. By the time he initiated the transfer, he confirmed it to me with an SMS that popped up on his phone, although, I didn’t get any message from my bank. 

“He waited for about five minutes acting calm and confident as if to reassure me. Still, the alert didn’t come.  But because of our previous dealings, and seeing the supposed debit notification on his phone, I assumed it was a temporary network issue and allowed him go.

“The alert never came, which my bank also confirmed. I realised i had been scammed when this regular customer never returned to my shop again,” she narrated. 

While Adeyemi may have learnt her lesson, it is likely that she or several others who had been burned will not fall prey next time, given the dynamics and adaptiveness of   criminal operations. 

Chairman, Mobile Software Nigeria, Dr. Chris Uwaje, linked the exponential surge in this scheme to information overload, causing national and global data-chaos.

He expressed concern however, that present experience could just be a tip of the iceberg, especially now that Artificial Intelligence (AI) and robotics have assumed centre stage. 

In the same vein, the Chief Executive Officer of Hamgad Security Services Limited, Hammed Ibrahim, cautioned on the need for all to strengthen their guard, noting that the threat will remain as long as businesses operate and transact online. 

The security expert who has uncovered numerous fake alert schemes warned that perpetrators often prey on the looseness of vendors to scale, noting that clubs, lounges and restaurants are becoming the worst hit.

He added, “Many vendors rely on receipts sent by buyers to confirm payment, but those receipts are increasingly being manipulated to carry out fraud. 

“Demonstrating a simple verification method, Ibrahim said, “If my account name is ‘Hamgad Security Services Limited’ and payment receipt says ‘Hamgad Security Services,’ without the ‘Limited’, I already know it’s a fake receipt/alert. 

“Moreover, when it comes to personal bank transfers, the official name on an account usually includes the first name, middle name, and last name. If I’m sending you money and my name is Hamgad O. Ibrahim, you may not know what the ‘O’ stands for, but my account must carry the full name. 

He enlightened further that fake bank alerts often come in all caps or lowercase to mimic real notifications, noting that real alerts use capitalisation consistently.

He also cautioned against the common practice of accepting a customer’s phone number in place of a verified payment.

 “What if I give you a fake number?” he asked. “Did you cross-check before handing over the goods? That’s a big mistake. Never release anything until you confirm the payment, “he warned. 

In further findings, THISDAY Newspaper uncovered more helpful tips which are presented below:

No Corresponding Bank Notification

 If you receive an SMS alert on the sender’s device but do not get a corresponding notification from your bank via SMS, email, or banking app, be cautious. 

 Mismatch in Account Balance

Always verify that the credited amount reflects in your actual account balance. A legitimate transaction will increase your account balance accordingly. If there’s no change, it’s a red flag.

Unusual Customer Behavior

Be wary of customers who insist on immediate confirmation of transfers or display urgency. Scammers often create a sense of urgency to pressure you into releasing goods or cash without proper verification.

Inconsistencies in Alert Details

Fake alerts may contain errors such as misspellings, incorrect account numbers, or unusual formatting. Legitimate bank alerts are typically free from such mistakes.

 Lack of Email Confirmation

Banks usually send email notifications for transactions. If you receive an SMS alert but no corresponding email, it’s advisable to verify the transaction through official channels.

Use Official Banking Channels

Always confirm transactions through your bank’s official mobile app, USSD codes, or by contacting customer service. Do not rely solely on SMS alerts.  

 Educate Staff and Family Members

Ensure that anyone handling transactions on your behalf is trained to verify payments properly before releasing goods or cash.