Dark Reading is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Attacks/Breaches

11/18/2014
04:10 PM
Sara Peters
Sara Peters
Quick Hits
Connect Directly
Twitter
RSS
E-Mail
50%
50%

'Misdial Trap' Phone Scam Hits Financial Services

One in six financial institutions victimized by this new scam.

Pindrop Security today warned financial institutions and their customers about a telephone scam they've dubbed the "misdial trap."

Fraudsters buy phone numbers similar to legitimate businesses, and pose as that business's customer service line when customers misdial -- not unlike how some fraudsters buy domain names similar to legitimate online businesses and create sites that mimic them, according to Pindrop.

The numbers fraudsters typically choose will have the same first six digits as the legitimate business, with only the final digit changed, or they will have the same seven-digit number but a different area code -- a toll-free number area code, for example.

When they hook a customer, they pretend they are customer service for the company in question and request sensitive data from customers -- sometimes offering a free gift card in exchange.

Some 103 of the 600 financial institutions examined by Pindrop Security were affected by the misdial trap.

"Phone fraud costs banks and financial institutions nearly $2 billion every year and fraudsters continue to develop new attacks to steal from consumers and financial institutions," said Vijay Balasubramaniyan, co-founder and CEO of Pindrop Security. "The misdial trap scam is just the most recent example of how sophisticated fraud rings are exploiting inherent vulnerabilities in the phone channel to collect consumer information and defraud financial institutions."

Sara Peters is Senior Editor at Dark Reading and formerly the editor-in-chief of Enterprise Efficiency. Prior that she was senior editor for the Computer Security Institute, writing and speaking about virtualization, identity management, cybersecurity law, and a myriad ... View Full Bio

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
StudiousMonkey
50%
50%
StudiousMonkey,
User Rank: Apprentice
11/19/2014 | 2:58:53 PM
Clever
Various phone scammers and prank callers have used this technique for years.

Check out the "Touchtone Terrorists". This guy (Pete Dzoghi) made a living telesquatting many of the major courrier services like UPS and FedEx, as well as other organizations and companies. He would pose as various disgruntled customer service agents to ultimately get a huge rise out of the unsuspecting customer who had dialed the wrong number. He recorded these calls and sold them through retail channels.

Although the end result and goal are not the same, the concept has been around for years.
vnewman2
50%
50%
vnewman2,
User Rank: Strategist
11/19/2014 | 1:44:50 AM
Cyber squatting but for phones
So it's telesquatting then. It's pretty clever actually. This is the first time I'm hearing of it. So what is the solution? Unlike websites you can't as easily monitor or pull the plug on a phone number before a boatload of damage has been done.
Microsoft Patches Wormable RCE Vulns in Remote Desktop Services
Kelly Sheridan, Staff Editor, Dark Reading,  8/13/2019
The Mainframe Is Seeing a Resurgence. Is Security Keeping Pace?
Ray Overby, Co-Founder & President at Key Resources, Inc.,  8/15/2019
GitHub Named in Capital One Breach Lawsuit
Dark Reading Staff 8/14/2019
Register for Dark Reading Newsletters
White Papers
Video
Cartoon Contest
Current Issue
7 Threats & Disruptive Forces Changing the Face of Cybersecurity
This Dark Reading Tech Digest gives an in-depth look at the biggest emerging threats and disruptive forces that are changing the face of cybersecurity today.
Flash Poll
The State of IT Operations and Cybersecurity Operations
The State of IT Operations and Cybersecurity Operations
Your enterprise's cyber risk may depend upon the relationship between the IT team and the security team. Heres some insight on what's working and what isn't in the data center.
Twitter Feed
Dark Reading - Bug Report
Bug Report
Enterprise Vulnerabilities
From DHS/US-CERT's National Vulnerability Database
CVE-2019-15224
PUBLISHED: 2019-08-19
The rest-client gem 1.6.13 for Ruby, as distributed on RubyGems.org, included a code-execution backdoor inserted by a third party.
CVE-2019-15225
PUBLISHED: 2019-08-19
In Envoy through 1.11.1, users may configure a route to match incoming path headers via the libstdc++ regular expression implementation. A remote attacker may send a request with a very long URI to result in a denial of service (memory consumption). This is a related issue to CVE-2019-14993.
CVE-2019-15223
PUBLISHED: 2019-08-19
An issue was discovered in the Linux kernel before 5.1.8. There is a NULL pointer dereference caused by a malicious USB device in the sound/usb/line6/driver.c driver.
CVE-2019-15211
PUBLISHED: 2019-08-19
An issue was discovered in the Linux kernel before 5.2.6. There is a use-after-free caused by a malicious USB device in the drivers/media/v4l2-core/v4l2-dev.c driver because drivers/media/radio/radio-raremono.c does not properly allocate memory.
CVE-2019-15212
PUBLISHED: 2019-08-19
An issue was discovered in the Linux kernel before 5.1.8. There is a double-free caused by a malicious USB device in the drivers/usb/misc/rio500.c driver.