Online banking fraud due to rogues using cashback sites (my experiences)

Tara100

Paying out is the final step and often takes months!

Ah I see!

Mind you, how many folks study each and every DD name going out of their account each and every month? I didn't even notice the Tesco home insurance that went out on the 19th; even though I spotted the Virgin Insurance DD twice. It was the RBOS guy that pointed out the Tesco entry!
I think this is how most of the scams succeed, and the cashback payouts go ahead.........

Paul_Varjak

Tara100 wrote: »

He also added that banking fraud teams are working to get cashback sites closed in the future, as the fraud committed through them is large scale.

So, the banks' fraud teams are wanting to get cashback sites closed down, whilst their marketing teams are offering cashback through cashback sites? Sounds like a breakdown in communication to me!

Anyway, the fault does not lie with the cashback sites but with the banks for processing a DD request where the name does not match the account number! I would argue that we should, therefore, be closing the banks instead.

Paul_Varjak

Tara100 wrote: »

Hi Paul

It was the guy at the RBOS Fraud Dept who told me that he had a set up with his NatWest account, so that if he wants to start a new DD, he has to be sent an actual mandate that has to be signed and returned.
I asked Barclays to do the same, and they just went one better and now will refuse all new DD requests. If I want to begin a new one, I have to request that the block is temporarily lifted, and then restarted.

I hope this helps

I will consider making a similar request today!

Paul_Varjak

Thanks to Tara100, I have been checking my bank account direct debit mandates using online banking.

Scottish Power set up two Direct Debits on my account yesterday (without any authorisation from me).

A quick check on www.topcashback.co.uk shows that Scottish Power are currently paying £110 cashback to new customers!

I am already a Scottish Power customer that is leaving them on Tuesday!!!

Tara100

Oh my word Paul!
I have a horrible feeling that this is happening to many people, and the DD entries aren't being spotted
Well I'm glad I helped, and I urge others to go and check their bank statements now! (and check as many months back as you can)

It's a pity, but I do think that unless security is tightened, this will be the end of the cashback sites.......I love them and made over £250 from them this year, by mainly buying legitimate car / house insurances!

I know your bank will refund you through the 'Direct Debit guarantee scheme, but did you speak to the fruad dept so they can investigate?
Oh and are they putting a 'marker' on your account so that no more DD's can be set up??

Good luck with sorting things out

competitionscafe

Interesting. Something similar happens on a large scale in the US (not with cashback sites though).

What happens is certain people who are affiliates for various CPA affiliate networks use stolen credit card numbers to sign up for the offers on those networks. Usually the "pay only $1.95 for shipping" 'free' trial offers for Acai or teeth whitening etc (which are big scams anyway!) but these payout a commission of $30 to $40 per sign-up and most people don't notice the $1.95 charge as it's so small but then get hit for $80 or $120 or whatever a bit later from some company they have never heard of.

neil9313

Tara100 wrote: »

Oh my word Paul!
I have a horrible feeling that this is happening to many people, and the DD entries aren't being spotted
Well I'm glad I helped, and I urge others to go and check their bank statements now! (and check as many months back as you can)

It's a pity, but I do think that unless security is tightened, this will be the end of the cashback sites.......I love them and made over £250 from them this year, by mainly buying legitimate car / house insurances!

I know your bank will refund you through the 'Direct Debit guarantee scheme, but did you speak to the fruad dept so they can investigate?
Oh and are they putting a 'marker' on your account so that no more DD's can be set up??

Good luck with sorting things out

You seem to be putting out some rather rash statements on here, ie banks are trying to shut down cash back sites :rolleyes: try not to run before you can walk :rolleyes:

competitionscafe

Tara100 wrote: »

It's a pity, but I do think that unless security is tightened, this will be the end of the cashback sites......

Highly unlikely.

Tara100

You seem to be putting out some rather rash statements on here

You could give the RBOS fraud dept a call.........As with me, they will be happy to relay to you what they are working to do.

Please don't shoot the messenger. I came here to help others, and as one poster has already spotted unauthorised direct debits within their bank account, then starting the thread was very worthwhile.....

opinions4u

Tara100 wrote: »

You could give the RBOS fraud dept a call.........As with me, they will be happy to relay to you what they are working to do.

Please don't shoot the messenger. I came here to help others, and as one poster has already spotted unauthorised direct debits within their bank account, then starting the thread was very worthwhile.....

I quite agree that starting the thread (and maintaining it) is worthwhile.

Cashback sites do create an opportunity for a fraudster, albeit one that provides a slow burn payout.

But equally, staff in bank branches allow fraudsters to withdraw. Bank online systems can be breached. Bank telephony operations can be used by fraudsters to obtain large sums of money. (*before everybody panics and sticks their hard earned money under their mattress, such happenings are rare and banks will refund those who are victims of fraud).

Online shopping sites provide an opportunity for fraud. Petrol stations are notorious for card cloning activity. Stolen cards are often tested with small transactions in supermarkets.

You have a quote by some bloke in the RBS fraud team which says "banking fraud teams are working to get cashback sites closed in the future".

It might make his job easier, but using that logic he would have to close all routes of fraud down. So he should start with his own branches, online systems and call centres. Then he should move on and ban petrol stations from accepting cards, close down every online shopping outlet and the big supermarket chains.

Once he's achieved this he might want to look at the profit and loss figures for his firm and wonder why he no longer has a job.

Perhaps there is a case for saying the cashback sites should use eVerification before sending a BACS payment, or take some other steps to minimise the potential for fraud. Perhaps the FSA should have some sort of influence over how they do business.

But to suggest that these cashback sites should be shutdown is a foolish comment by a member of staff in a bank's fraud team who should really use his brain before engaging his mouth.