Report: Text message scams increasing

Internet criminals are increasingly operating like successful businesses, borrowing the best strategies from legitimate companies and collaborating in partnerships with each other to make a profit off their illegal activities, says a new security report.

Cisco's 2009 Midyear Security Report covers a range of threats, including a significant increase in text message scams--the "new frontier for fraud irresistible to criminals," who hope that consumers savvy enough not to fall for e-mail phishing scams may still be gullible through their mobile phone.

The research notes that recently smaller financial institutions have been the focus of many text message scams "likely because customers tend to have higher levels of trust and familiarity with local banks." It cites three examples--all from credit unions (First Community CU, Jamestown, N.D.; Buffalo Metropolitan FCU, Buffalo, N.Y., and BCT FCU, Binghamton, N.Y.).

Among the threats the report cites:

Botnets--Networks of compromised computers used to launch an attack, botnets are being increasingly rented out as a service by their owners to fellow criminals to deliver spam and malicious software.

Spam--A major vehicle for spreading worms and malware and clogging Internet traffic, spam encompasses everything from legitimate sales pitches to malicious websites. More than 180 billion spam messages are sent each day-- about 90% of the world's e-mail traffic.

Worms--Credit unions interested in using social networking need to be aware that the rise of social networking has made it easier to launch worm attacks. People who social network are more likely to click links and download content they believe were sent by people they know.

Spamdexing--Packing a website with keywords or search terms so search engines will display the site more prominently, spamdexing also can send malware disguised as legitimate software. Consumers who trust the rankings on major search engines may download a fake package.

Text message scams--Since the beginning of the year at least two or three new campaigns have surfaced every week on handheld mobile devices such as cell phones. More than 4.1 billion mobile phone subscriptions worldwide mean a criminal can cast a wide net and walk away with a hefty profit, even if the attack yields only a small fraction of victims.

Insiders--With the global recession causing loss of jobs, insider threats are an increasing concern for businesses. Insiders who commit fraud can be contractors or other third parties as well as current or former employees.

The reported noted three trends to watch:

1. Spam will return to record high levels;
2. Legitimate websites will see more attacks; and
3. Social networking attacks will continue;

Crimes via Text Messaging

A woman has changed her habit of how she lists her names on her mobile phone after her handbag was stolen. Her handbag, which contained her cell phone, credit card, wallet, etc. was stolen.

Twenty minutes later when she called her hubby, from a pay phone telling him what had happened, hubby says 'I received your text asking about our Pin number and I replied a little while ago.'

When they rushed down to the bank, the bank staff told them all the money was already withdrawn. The thief had actually used the stolen cell phone to text 'hubby' in the contact list and got hold of the pin number. Within 20 minutes he had withdrawn all the money from their bank account.

*Moral of the lesson: do not disclose the relationship between you and the people in your contact list. Avoid using names like Home, Honey, Hubby, Sweetheart, Dad, Mom, etc.... and very importantly, when sensitive info is asked of you through texts, CONFIRM by calling back.

*Also, when receiving a text from your friends or family to meet them somewhere that is not planned or usual, be sure to call back to confirm that the message came from them. If you don't reach them, be very careful about going places to meet 'family and friends' who text you.

As of right now, I no longer have 'home' named on my cell phone.



____________________________________________________________ Security Camera for your small business. Click Now!

More text messaging scams surface

More text-message scams aimed at draining consumers' accounts are being reported by credit unions in several states.

Here are reports from the latest wave of credit unions targeted by scams in Minnesota, Washington and Alabama:

>> SPIRE FCU, Falcon Heights, Minn., said consumers checking text messages on their cell phones were warned that their credit union accounts had been locked. They were told that they could fix the problem--by providing their account numbers. Once they give the numbers, the accounts can be drained by the scamsters (Pioneer Press Sept. 9).

>> Gesa CU, Richland, Wash., was the target of another text messaging scam, according to KNDO.com (Sept. 11). On Wednesday, six people in a sister station, KNDU, reported receiving the text messages, which asked them to call a number to protect their Gesa account. The report said police believe the texts are sent from Spain because money the scamsters have taken is sent there. Police noted the culprits are hard to track down because the Internet provider address used isn't from a physical location.

>> A credit union based in Bynum, Ala., was among several financial institutions in the state whose names were used in text messaging scams and e-mail and voicemail message scams (The Anniston Star Sept. 7).

In all cases, the financial institutions warned consumers not to answer the messages and to delete them. Financial institutions would never contact members or customers unsolicited and ask for account and other numbers.