The risks and costs of cybersecurity breaches have necessitated that financial institutions put robust, multi-layered security measures in place. However, cybercriminals continually develop new threats that must be addressed. One that can be particularly damaging to banks is phone number spoofing, which has recently spread across the country.
In telecom, phone number spoofing is when a cybercriminal disguises its phone calls as a legitimate organization – in this discussion a bank – by fraudulently displaying its caller ID. This is to get the bank’s client to answer the call and provide confidential information that enables the criminal to have access to accounts and other assets. When it is successful, the bank’s client fully believes they are talking to a trusted bank representative.
Prior to making the calls, the cybercriminal does internet research to find out as much about the bank’s client as possible. There is a recent example where a cybercriminal found publicly posted PPP (Payroll Protection Plan) information about companies, loan amounts and their financial institutions online and used it to target businesses and banks. When the bank’s client answers the call (on their cell phone), the caller skillfully shares the information they have, convincing them they are really talking to their bank. Then they ask for information they don’t have but need to access accounts and do other malicious things.
The consequences of phone number spoofing attacks on banks can be devastating, affecting not only financial stability but also customer trust and regulatory compliance. Included can be:
Financial Losses – Unauthorized transactions, fraudulent wire transfers and compromised accounts can lead to significant financial losses.
Reputational Damage – Phone number spoofing attacks can erode confidence and trust in a financial institution.
Regulatory and Legal Consequences – Failure to prevent spoofing can result in regulatory penalties, lawsuits and increased scrutiny.
Operational Disruptions – Large-scale spoofing attacks can cripple banking operations, delaying transactions, freezing accounts and creating chaos for customers.
Like most cyber threats, battling phone number spoofing requires advanced, cutting-edge security measures and client education. A multilayered approach is recommended:
Call branding controls what shows up in the caller ID when a call is made from the bank.
Landline caller IDs do not appear on mobile devices, only the phone number calling.
Call branding enables a bank to have its name or its name and logo appear.
The bank can also choose to have a reason for calling shown.
80-90% of people do not answer mobile phone calls when they don’t recognize the number.
Call branding puts the recipient at ease and increases the number of calls that get answered.
To effectively combat spoofing, banks need to partner with qualified telecom technology experts who specialize in call branding and authentication solutions. Grudi and its partners offer a full suite of tools and services designed to help banks implement these critical safeguards.
Additionally, banks can take proactive steps to educate their customers about these threats and emphasize the importance of never sharing account information over the phone. This multi-pronged approach – combining call branding, call authentication and customer awareness – can significantly reduce the risk of fraud by cybercriminals.
Phone number spoofing banks is a significant and urgent threat. It started with the largest national banks, but when they put security measures in place, the cybercriminals started moving to regional banks that were easier to victimize. It is spreading rapidly and can be extremely damaging. Banks should act now to protect themselves and their customers because the process to fully implement a solution can take weeks to complete.
Improve security, avoid financial losses and improve client confidence with a reliable call spoofing defense. Schedule your free consultation now to find out how.
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