Landline Identity Theft Leads to Major Bank Fraud

Landline Identity Theft Leads to Major Bank Fraud

As scammers continue to evolve and find new ways to exploit vulnerabilities, a common yet underappreciated threat is emerging: landline identity theft. This type of cyberattack can give scammers backdoor access to your accounts, allowing them to drain your savings with relative ease.

A recent case highlights the dangers of outdated phone numbers and email addresses. Richard from Reno, Nevada, shared a story about his friend who lost money to scammers because their old landline number was still linked to a bank account. The scammer used a security loophole, an outdated landline still listed on file, to intercept security codes and drain the account.

Here's how it happened: the scammer convinced the phone company to port the number to a mobile device, allowing them to receive calls and texts, including two-factor authentication (2FA) codes. The victim received a credit alert asking whether they had opened a new card, but thought the issue was resolved.

However, soon after, the friend couldn't access their bank or investment accounts, despite having transaction alerts enabled. The scammer didn't hack a password; instead, they used the security loophole to bypass protections. The victim lost money, and by the time access was restored, the funds were gone.

So, how does landline identity theft work? Scammers use number porting, a legitimate process meant to help people keep their number when switching carriers. However, scammers exploit this process to gain control of old numbers that are still linked to bank or email accounts.

The overlooked weaknesses in this attack include:

  • Old phone numbers stay linked too long
  • Scammers can hijack even inactive numbers through porting
  • Credit monitoring can miss real-time fraud
  • Weak 2FA setups can be hijacked

To prevent landline identity theft, follow these steps:

  1. Audit your account recovery options: Check your recovery settings on every important account. Delete old phone numbers or backup emails. Keep only active, secure options on file.
  2. Use an authenticator app: Authenticator apps like Google Authenticator, Authy, or Microsoft Authenticator generate one-time login codes on your device. This is safer than relying on text messages, which scammers can intercept.
  3. Freeze number porting with your carrier: Contact your phone provider and ask about port-out protection. This feature blocks scammers from transferring your number without extra identity verification like a PIN or in-person request.
  4. Remove your info from data broker sites: Scammers gather personal details like old numbers from public broker listings. Use a data removal service to erase this info from the web.
  5. Monitor your bank activity directly: Set up alerts through your bank for every transaction. Log in regularly, even if you haven’t received any warnings, to catch fraud faster.
  6. Use a password manager: A strong, unique password protects each account. A tool like a password manager creates and stores complex passwords for you. It also tracks password health and alerts you to possible breaches.
  7. Consider full identity theft protection: Even with strong passwords and 2FA, your personal info can still be exposed. An identity theft protection service offers dark web monitoring, account alerts, and some offer up to $1 million in identity theft insurance.

By taking these steps, you can reduce your risk of becoming a victim of landline identity theft and protect your most important accounts. Remember, it's essential to stay vigilant and keep your personal info secure.