Credit card fraud is nothing new—but the technology scammers use to commit it is constantly evolving. Criminals are becoming more sophisticated, using technology to make their scams look legitimate and to turn stolen credit card information into quick profits.
A recent example involved Florida Highway Safety and Motor Vehicles (FLHSMV) scam texts and toll-payment scams. Millions upon millions of fraudulent text messages were sent claiming that the recipient’s driver’s license would be suspended or that they owed money for an unpaid toll or traffic violation. The message included a link directing the victim to a convincing payment page.
After entering their credit card information, the victim might receive a legitimate text from their financial institution containing a six-digit authentication code. At the same time, the scammer would send another message claiming that the code was needed to “verify” or complete the payment. In reality, the victim was unknowingly providing the scammer with the final piece of information needed to compromise the card.
Criminals have also found ways to use stolen card information with Apple Wallet or Google Wallet. This does not mean Apple Pay or Google Pay has been compromised. These digital payment systems use strong security features, including tokenization, to protect your actual card number. Instead, criminals are abusing the wallet technology after obtaining stolen card information and authentication credentials. They can make fraudulent transactions appear more like legitimate digital-wallet purchases, making the technology another tool in their fraud scheme.
The best defense is vigilance. Monitor your credit card and bank statements regularly. If you see a transaction you do not recognize, contact your financial institution immediately using the phone number on the back of your card or through its official app or website.
Set up text or email alerts for purchases and other account activity so you know when transactions occur.
Most importantly, use two-factor authentication whenever it is available—but NEVER give an authentication code to someone who contacts you. That six-digit code is designed to protect you. Giving it to a scammer can give them the final authorization they need.