The USAA Enterprise Security Group warned consumers last week of an emerging social media fraud scheme in which fraudsters solicit personal financial information, which they then use in mobile banking applications to commit fraud.
The group began investigating the fraud, known as card popping, in December. In the new version of fraud similar to old fake-check fraud, fraudsters solicit information such as debit card number and PIN from social media users with the promise of a monetary reward.
After the fraudsters gain access to the information, however, they then use it to access bank accounts, deposit bad checks and withdraw money before the checks are discovered to be fake.
“Card popping is an emerging fraud that’s affecting customers at many financial institutions, including USAA,” Tom Shaw, the vice president of enterprise financial crimes management at USAA, said. “As always, we are aggressively addressing this issue and helping protect our members by working closely with the financial community and law enforcement. It is a shared responsibility between USAA and our members to fight fraud.”
USAA said that, in addition to having their money and identities stolen, consumers may also face criminal charges because the accountholder is ultimately responsible for withdrawn funds.