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Using an Auto Dialer, 'Sophisticated' Calling Scam Hits Nebraska Banks

TMCnews


TMCnews Featured Article


April 15, 2010

Using an Auto Dialer, 'Sophisticated' Calling Scam Hits Nebraska Banks

By David Sims, TMCnet Contributing Editor


Datelined Sidney, Nebraska comes the news that Nebraska's Attorney General has announced concerns of a spreading international bank scam "that has hit at least two smaller Nebraska cities hard."

According to the Sidney Sun-Telegraph, State Sen. Deb Fischer and John Munn, director of the state Department of Banking, joined Attorney General Jon Bruning in a teleconference call "to alert other banks and the public on the matter."


Bruning said residents of Broken Bow, Nebraska "began to receive calls on their cell phones from someone claiming to be from Nebraska State Bank and Trust or an auto dialer," Bruning said, according to the Sun-Telegraph. "These people were told their debit cards had been deactivated and in order to restore their service, customers needed to give the caller their account number, their PIN, their security number and their social security number."

Bruning estimated that approximately 5,000 people were contacted with calls that "originated in Romania… part of a large scam operation."

The callers sounded like locals, the Sun-Telegraph reported, adding that the scammers may have contacted the community's bank to learn the receptionists' name, which they "used it in communication with bank customers."

Victim accounts "registered a $1 withdrawal from an account in Romania, which was followed by larger withdrawals," the Sun-Telegraph said, adding that "Bruning reported that Nebraska State Bank and Trust was working with customers, and had taken care of more than $5,000 in fraudulent charges for approximately 50 customers."

Bruning said the scam targeted owners of debit cards, not credit cards, because "there are shorter time limits and higher financial liability for owners of stolen debit card numbers." If theft is reported within two business days, the Sun-Telegraph said, "the account holder is liable for up to $50. After the two days, the account holder becomes liable for up to $500."

Bruning has opened an investigation. "It seems really new, really unique and really well thought out," Bruning said. "The use of the auto-dialer, the use of the automatic transfer, the use of the touchtone technology … that's highly sophisticated."

He suspects some local ties to the Romanian scammers.


David Sims is a contributing editor for TMCnet. To read more of David's articles, please visit his columnist page. He also blogs for TMCnet here.

Edited by Kelly McGuire







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