Risk Warning Regarding Phone Spoofing (2015-03-11)

Summary

This is a risk warning issued by the Guernsey Financial Services Commission alerting licensees to a fraud technique known as phone or number spoofing, where fraudsters clone a trusted organisation's telephone number so it appears on a victim's caller ID display. The notice explains how the scam works, including its use in mandate fraud and impersonation of bank staff or officials, and recommends steps licensees should take to protect themselves and their customers.

• Nature of scam: Fraudsters clone or spoof the phone number of a trusted organisation or individual so it appears genuine on caller ID, then use this false trust to commit fraud, including mandate fraud (fraudulent transfers or changes to account details) and extraction of PINs, passwords or other sensitive information.
• Recommended action: Licensees should ensure employees are aware of the spoofing technique and never assume a caller's identity is genuine simply because the displayed number matches a known organisation or individual.
• Suspicious signs: If a caller draws attention to the number shown on caller ID as proof of identity, employees should treat this as a red flag and become suspicious of the call and any transactions discussed.
• Reporting: Businesses that receive a suspicious call of this nature are encouraged to notify the appropriate authorities, including the Financial Intelligence Unit (FIU).

The notice is informational and awareness raising in nature; it does not create new formal regulatory rules but sets out expectations for licensees to train staff and remain vigilant against this fraud method.

Key obligations

• Licensees should ensure their employees are made aware of the phone/number spoofing method described so they can recognise and respond to it appropriately.

Applies to

licensees