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With tax season entering its final stretch, concerns have risen about customer information being exposed through tax preparation offices in local communities. As you know, tax returns contain a wealth of nonpublic personal information (NPPI) including first and last name, home mailing address as well as social security numbers for tax filers. This information can be used in conjunction with other data to open or access bank accounts online and bypass out-of-wallet questions.
One such scheme we learned about recently involved opening accounts online at larger, out-of-state banks and linking them to accounts at community and regional banks operating in Massachusetts. Fraudsters then took advantage of inactive telephonic banking services (more commonly called Voice Response Unit or “VRU”) to approve microdeposits and therefore link the two accounts. Fraudsters then initiated web debits or ACH entries from the out-of-state bank and funds were removed from the account almost instantly.
The complexity of fraud is ever-changing and evolving. Account fraud can be challenging to mitigate. Be sure to check out our end of year checklist which can be helpful not only during tax time, but while reviewing your finances during “Spring Cleaning”.
If you use need assistance accessing our Telephone Banking system or changing your Telephone Banking PIN – give us a call at 1-888-MECHANICS (632-4264) and a member of our team will be happy to assist.