Common Fraud and Scams

Fraud & Scams Impacting Individuals

Understanding Phishing Scams

Phishing scams are deceptive techniques used by cybercriminals to obtain sensitive information from unsuspecting individuals. These scams can occur through emails, phone calls, text messages, or fraudulent websites. Here's how they typically work:

• Impersonation: The scammer pretends to be a legitimate institution such as a bank, a credit card company, or a government agency. They create emails or messages that look official, often using the logos and branding of the institution they are mimicking.
• Urgent Requests: These communications often create a sense of urgency, prompting the recipient to act quickly. Common tactics include threats of account closure, large sums of money being claimed, or unverified login attempts.
• Request for Information: The messages or calls will request personal information, such as account numbers, passwords, social security numbers, or other identifying details. They may direct you to a fake website that closely resembles the real one, where you are asked to enter your information.
• Linking to Fake Websites: Often, phishing emails contain links that lead to counterfeit websites. These sites are set up to collect your personal data or to install malware on your computer.

How to Protect Yourself from Phishing Scams:

• Verify the Source: Before responding to any request for personal information, verify that it is coming from a legitimate source. Contact your bank or the institution directly using a phone number or email address you trust.
• Look for Signs: Check for poor grammar or odd phrasing in emails and messages. Legitimate messages from large organizations should be well-written.
• Do Not Click on Suspicious Links: Avoid clicking on links in unsolicited emails or text messages. Instead, go directly to the website by typing the URL into your browser.
• Use Security Software: Keep your devices protected by using up-to-date antivirus software, firewalls, and email filters to reduce the risk of phishing attacks.

If You Suspect a Phishing Scam:

• Do Not Provide Personal Information: Never share your personal or financial information in response to a request that you didn't expect.
• Report It: Contact Bank First immediately if you believe you've received a phishing attempt or if you suspect that your personal information has been compromised.

By understanding how phishing scams work and recognizing the signs, you can better protect yourself from these types of cyber threats. Remember, Bank First will never ask for your personal information through unsolicited communications. If you're ever in doubt, please reach out directly to us.

Post-Shopping Scams

Have you finished your holiday shopping yet? Because cybercriminals are just getting started. There are thousands of shopping-themed scams this time of year, but those scams don’t end when your cart is empty. Cybercriminals continue to target shoppers with urgent phishing emails about their recent purchases.

Two common post-shopping scams are fake shipping delays and unexpected purchase confirmations. Typically, these scams include a sense of urgency designed to catch you off guard in the hopes that you will click impulsively. You may be directed to click a link for tracking information or download a receipt for an expensive order that you did not place. These emails can be alarming, but if you take your time, they are easy to catch.

 Use the tips below to spot post-shopping scams:

• If you are expecting a package and receive a related email, look for details such as the order number, purchase date, and payment method.
• If you receive a notice from a retailer, don’t click any links in the email. Instead, use your browser to navigate directly to the retailer’s official website and look up your order there. 
• Remember to stop and look for red flags. For example, see if the email was sent outside of business hours or lists prices in a currency that you don’t typically use.

Source: KnowBe4

Text Scams

Fraudsters may send text messages asking you to respond to unusual activity on your account(s) and/or debit card(s). 

DO NOT engage or respond to text messages, emails, or phone calls that ask you to confirm or provide personal information. This includes debit card and bank account numbers, Social Security numbers, passwords, etc. Instead, contact your local Bank First office directly. Remember, Bank First will never contact you and ask for your account information.

Payment App Scams

As we know, fraudsters take advantage of every product, service, and opportunity they can to steal money or information. It's important to stay on guard and be money smart when using convenient services like payment apps. Remember that sending money through payment apps is like sending cash and it can be nearly impossible to get money back when sent to a scammer.

Scammers are still:

• Demanding immediate action.
• Pretending to be a loved one in trouble.
• Using lottery schemes to make you pay fees to collect a prize.
• Selling fake online items, tickets, or animals.

Pretending to be your bank or tech support to help solve a "critical error" or "protect" your computer/account(s).

In fact, the Federal Trade Commission (FTC)* recently referenced a scam regarding bank-to-bank transfers. "Scammers pose as your bank and tell you there’s a problem with your account. To 'protect' your account, the scammer tells you step-by-step instructions to transfer money from your bank account into a new account in your name. But that new account really belongs to the scammer, so after you make the transfer, your money will be gone."

Make it a habit to verify any request by contacting the person, bank, or business directly at a phone number you know to be valid. Bank First will never initiate contact to ask you to transfer money into a new account via Zelle (above example) or as for sensitive information such as complete account numbers, your PIN, passcodes, or your online banking credentials. If you feel uncertain about providing any information, it is okay to hang up and call the number available on your account statement or on our website.

*Link to FTC article: www.consumer.ftc.gov/consumer-alerts/2023/08

Active Scams on Inactive Accounts

Recently, Google announced a change to its inactive account policies. Starting in December 2023, accounts that have been inactive for two or more years will start to get deleted. While this policy is meant to enhance security, cybercriminals could use this news for their phishing scams. 

In the coming months, we expect to see an influx of phishing scams based on Google's new policies. Cybercriminals may send you phishing emails claiming that your Google account will be deleted unless you take immediate action. They may also ask you for your Google login credentials. If your login credentials fall into the wrong hands, cybercriminals could steal your sensitive information or impersonate you to scam others.

Follow the tips below to spot similar scams:

• If you receive an email claiming that your account will be deleted, consider whether or not you use the account in question and verify the legitimacy of the email.
• Think before you click. Cyberattacks are designed to catch you off guard and trigger you to click impulsively. 
• Be cautious before logging in to accounts through an email link. Instead, navigate to the organization’s official website to log in.

Source: KnowBe4

Student Loan Repayment Scams

The student loan payment pause is extended until the U.S. Department of Education is permitted to implement the debt relief program or the litigation is resolved. Payments will restart 60 days later. If the debt relief program has not been implemented and the litigation has not been resolved by June 30, 2023 — payments will resume 60 days after that. Remember that scammers take advantage of every opportunity to steal money and personal information and may contact you by call, text, email, and even social media. The Wisconsin Bankers Association (WBA) shared the top four scam scenarios seen in student loan repayment scams:

• Upfront Costs. Scammers charge illegal fees to borrowers attempting to access free debt-relief programs.
• Illegitimate FSA-ID Requests. Like your social security number, this ID allows scammers access to secure personal and payment information.
• False Promise of Forgiveness. Scammers do not know the details of your borrowing situation - they may make promises most people do not qualify for.
• False Partnership Claims. Verify that any source claiming partnership with the government, loan providers, and/or the Department of Education are legitimate.

View the WBA's Student Loan Repayment Scams document.

Tax-Related Identity Theft

Tax-related identity theft occurs when someone uses your stolen personal information to file a tax return. The IRS notes that you may be a victim of tax-related identity theft if:

• You get a letter from the IRS inquiring about a suspicious tax return that you did not file.
• You can’t e-file your tax return because of a duplicate Social Security number.
• You get a tax transcript in the mail that you did not request.
• You get an IRS notice that an online account has been created in your name.
• You get an IRS notice that your existing online account has been accessed or disabled when you took no action.
• You get an IRS notice that you owe additional tax or refund offset, or that you have had collection actions taken against you for a year you did not file a tax return.
• IRS records indicate you received wages or other income from an employer you didn’t work for.

The IRS offers valuable information on this topic in their newsroom:  www.irs.gov/newsroom/taxpayer-guide-to-identity-theft.

Advance Fee Investment Fraud

Advance fee investment fraud solicits investors to either pay fees up front or require fees to access the principle or earnings.  These fees may be described as a commission, taxes or operational expense.  Fraudsters often fool investors with official-looking websites or provide false statements of earnings.

Advance fee investment fraud may involve the sale of products or services, crypto-currency, lottery winnings, lost inheritance, and many more.  Watch out for red flags like:

• Investment offers that come “highly recommended” by unknown persons posting on websites or social groups.
• Offers that guarantee an unusually high rate of return.
• Pressure or sense of urgency to invest immediately.

If an investment sounds too good to be true, it probably is.  For more information regarding advance fee and other investment fraud, visit the FBI’s White-Collar Crime webpage for additional information.

Fake Check Scams

• You are asked to accept a check(s) for payment on behalf of another party
• You are told to keep a portion of the funds as payment or for other expenses
• After receiving the check(s), you are told to send funds elsewhere (cash withdrawal, purchase of gift cards, electronic transfer applications like Cash App or Venmo, or directed to purchase Bitcoin)
• When the fraud is successful, the funds have been transferred to the fraudster and the fake check is returned unpaid

Don’t be a victim.  If someone sent you a check and asked you to send money back – it’s a scam.

Overpayment Scams by Wire Transfer

• You are contacted by someone who claims to be from Microsoft, Amazon or an IT services company
• You are told that you are entitled to a credit or discount and are advised to login or provide your online banking credentials in order to initiate the “credit”
• The fraudster convinces you that an they issued an “overpayment” in error
• You are pressured to send back a sizable “difference” by wire and instructed to misinform bank staff about the purpose of the wire

If you were asked to provide sensitive banking details to an unknown party and an “overpayment” is involved – it’s a scam.

Unemployment/Cares Act Money Mule Fraud

• You are asked by an online acquaintance who requests bank account or personal identifying information to accept funds on their behalf
• You receive unfamiliar unemployment benefits payments or bank to bank electronic transfers
• You are ungently instructed to send funds elsewhere (cash withdrawal, purchase of gift cards, electronic transfer applications like Cash App or Venmo, or directed to purchase Bitcoin)

If you were asked by an online acquaintance to accept funds into your account and immediately withdraw the majority of the funds – it’s scam.

Relationship/Romance Scam

• Scammers create fake online profiles using legitimate dating apps in order to build a relationship and gain your trust.
• They may claim to be working overseas or in the military and soon present a need for money. The reasons for their request vary - emergencies, gambling debt, travel, or surgery.
• You are asked to pay by wiring money or gift cards - where they can get cash quickly and still remain anonymous.
• The scammer may offer to pay you back by check asking for your online banking login so they can process a mobile deposit.

Homeland Security Investigations (HSI) offers helpful tips to avoid losing money to a romance scam: https://www.ice.gov/news/releases/hsi-launches-new-awareness-campaign-digital-romance-scams-valentines-day.

Get Paid to Drive/Car Wrap Scam

• You are offered $250-$350 a week if you will have your vehicle (or motorcycle) wrapped to advertise a known product.
• If you sign up, you may receive a check for a couple thousand dollars, but are asked to deposit it and wire the rest to a company that will wrap your car.
• Weeks after you wire the money, the check bounces and you are out the funds and still responsible for the money you wired. Preloaded gift cards may also be presented as an alternate to wiring funds.

Fraud & Scams Impacting Businesses

Mailbox Theft (Business Checks)

Although this type of fraud is not new, we are seeing a general pattern of theft where criminals are targeting unsecured mailboxes at businesses to steal or photograph checks (incoming and outgoing mail). In the cases we experienced, the stolen check may be altered and exchanged for payment or the check information is used to create and distribute counterfeit business checks.

Ways to prevent this type of theft:

• The best prevention is to use a secured mailbox, especially if you are sending or receiving checks as payment. 
• Open and utilize a PO Box at your local post office.
• Collect your mail right away and have a collection plan for weekend mail or if you will be off site during mail delivery times. 
• Monitor your business accounts closely with services such as check Positive Pay. Contact our Treasury Management team to get started today.

Wisconsin Tomorrow Small Business Recovery Grant – Business Identity Theft

We have seen an increase in business identity theft situations in regards to the Wisconsin Tomorrow Small Business Recovery Grant:

• Some businesses have received “notice of potential identity theft” letters in reference to the grant for which they never applied. 
• Some businesses have received “notice of denial” letters from various lending institutions about credit applications that were not initiated by the business.

The Wisconsin Department of Revenue provides the following information if someone received either of these letters in regards to the Wisconsin Tomorrow Small Business Recovery Grant:

• A business owner, or their authorized representative, may make a request for a copy of the fraudulent grant application by contacting the Department of Revenue customer service line at (608) 266-2772.
• Go to the Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP) website to find FAQs regarding the grant denial letters: datcp.wi.gov/
• Go to IdentityTheft.gov.  This is the Federal Trade Commission's website that provides guidance to protecting the customer’s identity.
• Go to the Wisconsin Department of Financial Institutions at wdfi.org/corporations/#EntityIDTheft for information related to protecting a business.

Business Identity Theft

• Business identity theft occurs when identifying information and documentation is used to impersonate a business entity. 
• Criminals may pose as an owner, officer, or employee to obtain money under false pretenses including fraudulently applying for credit. 

Once a business becomes aware of any fraudulent activity, here are a few helpful resources and suggestions:

• Obtain a credit report for the affected individual or business from one of the three major credit bureaus at: Equifax, 800-685-1111; Experian, 800-311-4769; TransUnion, 800-888-4213 to see if other potentially fraudulent activity is present.
• Place a fraud alert or credit freeze with any one of the credit reporting agencies listed above.  
• Consider a company policy for safeguarding sensitive business identifying or account information.
• Notify your bank.  At Bank First, we also recommend setting a password on accounts as an added precautionary measure.  These “out of wallet” questions or statements are very effective in thwarting identity fraud.
• Report the incident to your local law enforcement agency and retain a copy of the report.
• Report the incident to FTC for federal reporting.

Paycheck Protection Program (PPP) Fraud/Scam Attempts

• Loan data, such as business name, type of business, address, PPP loan amount, funding date, number of employees, and financial institution, was made public by the SBA in December. In addition to the SBA, there are several online resources where this information is also published.
• As a result, fraudsters are taking advantage of this information and contacting PPP borrowers in an attempt to gain additional information and use it for fraudulent purposes. They may call or email you impersonating the SBA and/or your bank.

While there are legitimate businesses who may reach out to you with various services, we advise using extreme caution. Always be sure to contact your Relationship Manager directly to confirm the validity of any request from the SBA and/or your bank.

We encourage you to visit the SBA's website which provides additional information regarding SBA scam and fraud alerts: https://www.sba.gov/document/report-sba-programs-scams-fraud-alerts.

CEO Phishing Email

• An impersonation of your CEO with an urgent request to perform a task.
• Requested information may include paying a time-sensitive invoice, an urgent wire transfer, or request you to reply with confidential or personal information.

Clues that it's not your CEO: the email address or signature is not correct, the urgent tone of the email, even grammar errors. Verify the request with information you have on file before acting.