Financial fraudsters/cyber criminals are donning a new cap now, as regulators and law enforcers have been able to control most of their traditionally proven modes of frauds such as phishing and stealing pin numbers/passwords, among other tricks.
In what is called a rent-a-bank-account scam, the new kid in the fraudsters’ playbook, which is to allow a third party to access and use your bank account.
Gullible people are lured with promises of a few lakhs or a few thousands of rupees or a particular percentage of commission that ranges from 1-5% of the money being transacted through your account, and then are left to deal with criminal cases and large financial claims. Some even go to the extent of making you deposit money in your account and then withdraw that money and vanish.
Fraudsters may also offer to cover your travel and lodging expenses if the deal involves you to withdraw money and deliver it physically. Once rented out, scamsters use your account as an underground financial conduit for illegal activities, particularly involving stock price manipulation, online gaming, untraceable investment schemes and money laundering.
Scammers, who are on the constant lookout for newer ways to have their way, are now targeting social media users on the pretext of enrolling them for marketing purposes, with the promise of quick cash. If trapped, users can lose control of their bank and social media accounts and land in legal troubles.
The scam is spreading through personal referrals and social media platforms such as Telegram, where people are lured with the promises of quick cash payouts.
In exchange, they are asked to share bank login credentials and phone numbers linked to the accounts. Once given, the account holder becomes vulnerable to criminal charges, financial fraud, and regulatory scrutiny, as the account is then used for dubious transactions beyond their knowledge. Fraudsters typically look for current accounts with cash-management products or cash management services and/or merchant QR codes which make bulk payments easier by allowing one-click payments to multiple accounts.
Many attribute this new scam to the rise of the influencer economy which has created a perception about social media as a money-making machine.
However, it has to be noted that renting social media and bank accounts is a somewhat legitimate marketing practice in some countries and regions such as the Channel Islands, the Isle of Man, and even Singapore, which allow non-residents to have bank accounts which can be used for certain marketing activities.
These cyber criminals are using mostly Linkedin or Telegram to reach out to their prospective targets offering payments.
Typically these criminals lure you to share your social media account credentials. Once they know that you are hooked in, they persuade you to share your bank account details under the pretext of payout.
Once access is granted, fraudsters use your account to transfer illicit funds, often masked as proceeds from online gaming or trading activities.
In reality, you have no visibility into the nature of these funds, leaving you exposed to serious regulatory and law enforcement action.