Magic Pen Fraud

The “Magic Pen” (Pen with Erasable Ink) method used by fraudsters, posing as bank representatives to dupe customers is on the rise. This fraudulent activity appears to be continuing and hence we wish to reiterate the precautions that you need to take to safeguard yourself from such fraudsters.

These fraudsters ask customers to complete the Loan / Credit Card applications and request for a cheque from you to be used as “Security Cheque”. The fraudster fills up the details on the cheque in your presence using his magic pen and requests you to sign the cheque.

Subsequently, the details of beneficiary and amount in the cheque are altered since it was filled up with the magic pen, which allows the details entered to be erased without a trace.  The cheque is then encashed by fraudsters using assistance of third parties.

What should you do if you are approached by a representative of a bank selling a Credit Card or Personal Loan?

• Please ask the representative to identify himself and check his photo ID card issued by the bank. • Do not hand a blank security cheque.  Please fill in all details in the cheque including name of the beneficiary (which should be the bank’s name) and amount with your own pen.

• Do not use the pens provided by the other party to fill in details of the cheque or loan / card documents.

• If in doubt contact the concerned bank on their land line and confirm that the representative indeed works for the bank he claims to represent.

Further, note that the Bank will never ask you to share your banking credentials or log in to an email link to claim a prize, refund or update your account details to avoid closure. Please do not respond with such information to any email, SMS or WhatsApp message claiming to be from the bank. 

Be aware. Be Secure.

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