The report from the Financial Self-Regulation Center (CAF), linked to the self-regulation system of the Brazilian Federation of Banks (Febraban), highlights that financial fraud attempts have increased by more than 408% since 2018 in Brazil. The study also indicates that four Brazilians are victims of a coup attempt every minute. These indicators intensify at the end of the year, a period in which the flow of consumers and businesses increases on the streets, in shopping centers and at in-person events. This increase in circulation is associated with a greater likelihood of card-swapping and machine-based scams.
According to lawyer Brunna Simon Vecchi, a lawyer specializing in bank fraud and digital law, “with the increase in circulation at the end of the year, the likelihood of face-to-face scams will increase, especially with regard to card exchange and machine fraud.”
How it works the card exchange scam?
According to the creator of the brand Dr, I fell for the scamThis type of fraud occurs when the original card is replaced with a similar card, making it difficult for the victim to notice it immediately. The expert explains that “this type of event is usually reported in places with higher traffic, such as fairs, events and street sales points, precisely because there is a large volume of payments in person”.
The lawyer also adds that “in most reports, the cardholder only identifies the fraud after seeing the transactions made with the original card.”
Another modality that is gaining momentum concerns the handling of payment equipment. According to the bank fraud expert, “there are situations in which the equipment can be manipulated to trick the holder into repeating the operation or entering the password more than once, which increases the risk of financial loss.” This tactic allows card details to be captured or the transaction amount to be changed without the consumer noticing.
Prevention is the main tool against fraudsters. Adopting simple practices can significantly reduce risks. The preference for contactless payments (NFC), for example, is considered a more secure alternative because it does not require handing over the card to the seller. Keeping the card in your possession for the duration of the operation and checking the value displayed on the machine’s screen before entering the password are crucial steps.
It is also recommended to be wary of equipment that displays successive error messages. “Lack of attention and haste are factors which often contribute to the carrying out of scams,” reinforces the bank fraud specialist. Adopting a discreet identification on the card, such as a small sticker, can also help identify a possible exchange.
What to do if you are scammed?
In the event of fraud, the responsibility of financial institutions in preventing atypical transactions is provided for in the Consumer Protection Code (CDC). According to lawyer Brunna Simon Vecchi, financial institutions have mechanisms designed to identify operations that deviate from the customer’s consumption pattern, which includes movements that are atypical or incompatible with usual behavior. The expert explains that, when these systems do not prevent suspicious transactions, “this opens space to evaluate the performance of the financial institution, especially when there is evidence of a failure in security monitoring.”
The lawyer notes that, in the reports analyzed, consumers generally communicate to the bank that the card has been blocked and dispute unrecognized transactions, a step which helps to formally record the incident.
According to her, “situations involving transactions incompatible with the consumer’s profile may require a technical analysis to verify the possible liability of the financial institution, and a lawyer specializing in bank fraud is essential.”
The expert adds that “attention paid to payment procedures remains a relevant element to reduce risks, particularly in times of greater circulation”.
Lawyer Brunna Simon Vecchi, a specialist in bank fraud, observes that the combination of a greater volume of transactions and social engineering practices keeps the issue in the spotlight among professionals in the financial sector. According to her, monitoring these events helps to understand risk patterns and the responses adopted by institutions during times of increased consumption.
With the arrival of the festive dates, the topic returns to the agenda of experts and regulatory bodies, who monitor the evolution of the methods used in in-person scams and their impacts on the consumer experience.
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