By Dawn Hicks

There is a new form of internet fraud out there these days:  it is called Vishing.  Not to be confused with the basic phishing and pharming scams, vishing involves the use of Voice over Internet Protocol (VoIP).  Fraudsters use this technology to trick people into divulging their personal financial information through one of the most trusted forms of communication: the telephone.  While consumers have learned to be suspicious of phishing scams that involve solicitations for personal financial information directly over the internet, they are still easily persuaded to divulge that information when called directly or when an email instructs them to call a specific number.

How Does Vishing Work?

The consumer is usually contacted in one of two ways: by telephone or by email.

Telephone

VoIP is a technology used to route voice conversations or signals over the internet.

The scammer uses the VoIP tool with a modem to call phone numbers in a given region. When the consumer answers, an automated recording states that the consumer’s credit card is showing fraudulent activity.  The consumer is directed to call a specific toll free or local phone number immediately. The number dialed may show a spoofed caller ID for the financial company the scammer is pretending to represent. (Internet-telephone services do not require some of the verification checks used by traditional telephone companies; they provide telephone numbers with a choice of area codes that bear no relevance to the scammer’s actual location.)

In some cases, the thief already has the consumer’s credit card number and will only ask for the three-digit code on the back of the credit card.  This makes the call seem even more legitimate to the victim.

Usually within 3 days of the call, the telephone line is disconnected.  This, of course, makes it almost impossible to track the offender.

Email
The consumer receives an email from one posing as a representative of a
specific financial institution.  The message states that the consumer’s account has been compromised.  The consumer is instructed to call a toll-free or local  number to update his account information.  When the consumer calls the number, he is prompted to provide account numbers, PIN numbers and other personal financial information.  The consumer unknowingly gives the thief total access to his account, credit cards, and/ or other financial holdings.

Once the consumer enters this account information, the visher has all of the information necessary to place fraudulent charges on the consumer's card and possibly harvest additional details such as security PIN, expiration date, date of birth, and bank account number.

How Can You Protect Yourself from Vishing Scams?

• Do not respond to telephone or email requests for personal financial information.  If you are concerned, call the financial institution directly, using the phone number that appears on the back of your credit card or on your monthly statement.
  
  
• Never click on the link in an unsolicited commercial email.
  
  
• Speak only with live persons when providing account information.
  
  
• Install software that can tell you whether you are on a secure or fake website.
  
  
• Regularly monitor your credit reports from the 3 credit bureaus by visiting www.annualcreditreport.com or by calling (877) 322-8228.

Sources

Hancock Bank. Vishing: Phishing by Phone. Retrieved from www.hancockbank.com, 2007, January.

Lavallee, Andrew. “Email Scammers Try New Bait in ‘Vishing’ for Fresh Victims.” The Wall Street Journal, 2006

Weisbaum, Herb. “‘Vishing’ Scams Use Your Telephone to Hook You.” Breaking News MSNBC. Retrieved from www.msnbc.msn.com, 2006, August.

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