Bank fraud known as IBAN Clipper is gaining ground in Portugal and represents a serious threat to those who make online transfers. It is a silent scheme, difficult to detect, that allows fraudsters to divert money even when operations are carried out through the banks’ official websites or applications.
This type of fraud is based on manipulating the IBAN during the transfer process, without the victim realizing it. The phenomenon has been worrying authorities and banks, mainly due to the significant increase in financial losses associated with digital fraud.
IBAN Clipper and how it works
IBAN Clipper is a malicious program that installs itself on a victim’s computer or cell phone without their knowledge. Typically, the infection occurs after clicking on an apparently legitimate link, received by email, SMS or through fake pages that imitate well-known websites, according to the economics portal Ekonomista.
Once installed, the malware comes into action the moment the user copies an IBAN. The software automatically recognizes the number and replaces it, within seconds, with an IBAN controlled by the fraudsters, even before the final confirmation of the transfer. The process is invisible to the victim, who believes they are sending the money to the correct recipient.
This IBAN-related fraud is particularly dangerous because it can occur even when the user accesses the bank’s home banking directly, without any immediate security alert.
Bank fraud in Portugal: worrying numbers
The most recent data from Banco de Portugal confirms the scale of the problem. In the first half of 2024, losses associated with card and transfer fraud reached 8.9 million euros, a significant increase compared to the approximately five million recorded in the same period of 2023.
In the specific case of bank transfers, 16 fraudulent transactions were recorded for every million normal transfers, compared to just six in the same period last year. The average value per fraud also rose, rising to 3,118 euros. Complaints related to online fraud also continue to increase, reflecting a worrying trend in the sophistication of the schemes used, according to the same source.
Warning signs during a transfer
There are some signs that may indicate that something is not right during an online banking transaction. One of the most common signs is the computer or cell phone temporarily blocking after entering the transfer data, which may result in messages such as “updating” or unexpected requests to install or update software.
During this period, fraudsters take the opportunity to change the destination IBAN without the user noticing. Any abnormal behavior of the device, especially at critical moments of operation, should be seen as a warning sign.
How to protect yourself from IBAN Clipper
Before making any transfer, you should always access the bank’s website by manually entering the address or using saved favorites, avoiding searches on search engines. It is also essential to confirm that the website is secure, checking that the address starts with “https://” and that the security padlock appears.
Keeping your operating system and antivirus up to date is one of the most effective barriers against malware. You should also avoid clicking on links received via unsolicited email or SMS, even if they appear to be from known entities, according to the source cited above.
When confirming the transfer, checking the IBAN is crucial. You must carefully confirm that the IBAN displayed on the final screen or in the confirmation message sent by the bank exactly matches the intended recipient, including when using frequent beneficiaries.
Since May 2024, the beneficiary confirmation functionality has been available, allowing you to verify the recipient’s name before authorizing the transfer. This measure proved to be highly effective, having contributed to a reduction of around 77% in fraudulent transactions in the first few months, especially in schemes similar to “Hello Father, Hello Mother”.
What to do if you suspect fraud
If you detect any strange behavior during a transfer, you should immediately stop the operation, do not enter confirmation codes and immediately contact the bank through official channels, says .
In accordance with the rules in force, the customer assumes losses when the operation results from the misuse of their credentials or the inappropriate sharing of personal data. In other situations, the responsibility lies with the payment entities, reinforcing the importance of acting quickly in the event of any suspicion.
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