Do Not Share ATM Card Security Details with Others, Prosecutor's Office Warns

Recently, there has been a sharp increase in incidents of fraud conducted through online marketplace platforms where sellers are tricked into providing their ATM card details. This alarming trend has been highlighted in the study of reports received by the Prosecutor General's Office regarding property-related crimes recorded in 2022.

The findings reveal that fraudsters establish contact with sellers on internet trading platforms (for example, 'List.am') via 'WhatsApp' or other uncontrolled means. They pose as buyers and request the sellers’ bank card details under the pretext of making an electronic payment for the advertised goods. Subsequently, they use this information to illegally withdraw funds from the sellers' bank accounts.

The investigation identified two types of similar incidents. In one case, after a product listing is published on trading platforms, unknown individuals contact the seller through the 'WhatsApp' application using foreign or local phone numbers and request the seller's bank card details to finalize the purchase. The seller, believing the request is legitimate, provides the card details, including codes, and the fraudsters subsequently use this information to withdraw cash fraudulently.

In the other case, the criminals contact sellers under the guise of wanting to purchase the listed products and propose to seal an electronic contract via 'Armenian Post'. They claim to transfer a specific amount of money, and in return, a courier will deliver the product to the seller's location. Afterward, the criminals send a deceptive link purportedly from 'Armenian Post', prompting individuals to register by entering their bank details and codes. The link turns out to be fake, leading to a breach of trust.

Using computer technology, the fraudsters can then harvest the bank details obtained through the counterfeit link, transferring the money from the ATM card to various gambling or personal accounts, effectively siphoning the funds.

The investigation's results have indicated that the perpetrators execute their crimes in a premeditated manner, creating a reason for victims to divulge their ATM card security details. They offer to pay for products without negotiating prices, enticing the sellers to fall into their trap and disclose their ATM card's security information, which is later exploited for unlawful withdrawals.

As a consequence, the cardholders or their relatives willingly provide their details to the criminals, albeit under deceptive circumstances, enabling the criminals to fulfill their illicit intentions.

During the first half of 2022, 145 cases of fraud were recorded using the aforementioned methods. From these, 134 cases were completed, while 11 were suspended for reasons beyond the control of the criminals, primarily due to insufficient funds in the respective ATM cards. Out of the reported incidents, 82 decisions were made to initiate criminal proceedings, and 63 cases were dismissed. Out of the 82 criminal cases, only two have been solved; one was dismissed due to a settlement between the victim and the suspect, while the other is still ongoing. Two cases were closed due to the absence of complaints from the victims. The total financial loss has amounted to 18 million 147 thousand 818 drams.

Furthermore, studies show that the criminals typically operate with a unified intent and utilize information from multiple individuals, indicating that their criminal activity involves several episodes. The Prosecutor's Office of Armenia urges citizens to never share the security details of their ATM cards, including numbers and especially PIN codes. If they do, the protection offered by electronic payment systems may be ineffective in preventing criminals from accessing cardholder funds.