Digital Wallet Tokenization Fraud
Fraudsters, armed with cardholder information such as name, phone number and card number, are able to load cards onto their phones to be provisioned and used in digital wallet transactions.
How are they doing it?
- Fraudsters will call the cardholder while impersonating the fraud department of a credit union or bank.
- The fraudster will say they are calling in response to a potentially fraudulent authorization on the cardholder's card.
- The fraudster will then tell the cardholder that they need fo confirm the identity of the person they are speaking with.
- They will ask the cardholder to confirm a code that is sent to them via text message.
- The number that the cardholder reads back is actually the code which allows the fraudsters to tokenize the card for use in digital wallet transactions.
Provident Credit Union will never ask to have a code read back to confirm your identity. And we will never ask you to reply to an e-mail or phone call with personal information (such as your account number, PIN or SSN) unless you initiate the contact.