Fraudulent Credit Card Applications Surge During Late-Night Hours: What You Need to Know

Recently, experts have raised alarms about a troubling increase in fraudulent online applications for credit cards and bank accounts. What makes this surge even more concerning is the timing—these fraudulent activities are happening during late-night hours, a time when most people are fast asleep.

This unusual pattern has prompted experts to investigate and uncover a larger scheme involving identity theft. In this article, we’ll break down the situation, how it affects residents, and the steps you can take to protect yourself from falling victim to these scams.

Unusual Surge in Late-Night Applications

A significant rise in online applications for bank accounts and credit cards during late-night hours has caught the attention of experts.

Usually, people are not applying for financial services at night, as they are typically sleeping. But recently, there has been a noticeable increase in these applications at times when most citizens are not active.

Johnny Ayers, the CEO of Socure, a company that uses artificial intelligence (AI) and machine learning to detect fraud, spoke about the issue. He explained that many internal alerts were triggered during these odd hours, signaling possible fraudulent activities.

As the CEO of a company specializing in fraud detection, Ayers was concerned that these activities might not be from local residents but could involve external entities.

The Role of AI and Machine Learning in Detecting Fraud

Socure uses advanced AI and machine learning technologies to help businesses and government agencies detect fraud. These technologies can help identify patterns and abnormal activities that might indicate a scam.

Through their investigation, Socure discovered that a large portion of the fraudulent applications was being made from outside Massachusetts, even though the victims were all residents of the state.

The activities seemed to match patterns that are often associated with Chinese time zones, which raised suspicion of potential involvement from outside the United States.

This cross-border nature of the fraud indicates that the fraudsters were likely exploiting personal information from Massachusetts residents to open fake bank accounts and credit cards. It is believed that this could be part of a well-organized scam, making it even harder for the authorities to track and prevent.

The Source of Stolen Information: Data Breaches

The stolen information used by fraudsters seems to have been obtained from past data breaches that affected millions of Massachusetts residents. In 2023 alone, the state recorded over 2,400 data breaches, compromising the personal details of nearly 7 million people, a large portion of the state’s population.

These breaches happened due to inadequate security measures by companies, and it is now a legal requirement for companies to notify the state when personal data is compromised. Many of the stolen details from these breaches were sold on the dark web, a hidden part of the internet where illegal activities, including the sale of stolen personal information, take place.

Ayers stated that the fraudsters were using specific pieces of personal information stolen from these breaches. This information was then combined with local phone numbers to make the fraudulent applications look more legitimate. These tactics make it harder for traditional security measures to spot the scams, allowing fraudsters to operate without immediate detection.

How to Protect Yourself from Identity Theft

While the scale of these fraud attempts is alarming, there are steps you can take to protect yourself from identity theft and ensure that your personal information remains secure.

1. Regularly Monitor Your Credit Report: You are entitled to a free weekly credit report from the three major credit bureaus: TransUnion, Equifax, and Experian. Regularly reviewing your credit report allows you to spot any unfamiliar activity or unauthorized accounts opened in your name.
2. Consider a Credit Freeze: A credit freeze prevents new credit accounts from being opened under your name without your consent. If you notice unfamiliar accounts or believe your identity may have been compromised, freezing your credit is one of the best ways to protect yourself.
3. Update Your Passwords: Always use strong, unique passwords for your online accounts, and avoid reusing the same password across multiple sites. It’s also advisable to change your passwords regularly, especially after hearing about data breaches or other security threats.
4. Stay Alert to Phishing Attempts: Fraudsters may try to trick you into giving out personal details by pretending to be from trusted institutions like banks or government agencies. Always double-check the authenticity of requests for your personal information.
5. Report Suspicious Activity: If you find any unfamiliar accounts or activities in your credit report, contact the relevant authorities and take steps to close those accounts. Reporting fraud early can help minimize the damage.

Conclusion

The rise in fraudulent online applications for credit cards and bank accounts, particularly those involving late-night activity, is a serious concern. As fraudsters continue to exploit stolen personal data, it’s more important than ever for individuals to take proactive steps to protect their identities.

By monitoring credit reports, freezing credit accounts, and maintaining strong online security practices, consumers can reduce the risk of falling victim to these scams.

As technology evolves, so do the methods used by fraudsters. It’s crucial to stay informed and take necessary precautions to keep your personal information safe.

This article has been carefully fact-checked by our editorial team to ensure accuracy and eliminate any misleading information. We are committed to maintaining the highest standards of integrity in our content.