Preventing Fraud Articles

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Stay a step ahead of scams with these articles about fraud protection for businesses.

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How to protect your business from email fraud Email fraud is a growing problem Email fraud is one of the most costly cyber threats facing companies today. Fraudsters are getting better at impersonating trusted people — like CEOs, vendors, and longtime employees — to trick businesses into making fraudulent payments or sharing sensitive security information. But here’s the good news: Business email compromise is preventable. Fraudsters often depend on human error, not on high-tech hacking, so adding a few smart safeguards can help your business stop scams before it’s too late. What is Business Email Compromise (BEC)? BEC is a type of fraud where criminals use email to pose as someone you trust. Instead of relying on malware, these attacks use social engineering. They put pressure on employees, exploit trust, or create a false sense of urgency to drive action. These are just a few common forms of email fraud: Real email accounts are taken over using stolen passwords Spoofed domains make fake emails look almost identical to real ones Executives or vendors are impersonated convincingly enough to trick employees Compromised vendor accounts send realistic payment requests Whether the email asks for a wire transfer, a payroll change, or confidential information, the goal is the same: Move fast enough to slip through safeguards. Need help fending off fraud? Snag our Fraud Spotter Checklist to help you spot a scam before it strikes, then read on for more tips on preventing email fraud! Download now Here’s what your business should watch out for Fraudsters tend to follow familiar patterns. Knowing what to look for helps your team spot trouble before it spreads. These scams work when security steps are skipped or when employees don’t pause to verify a request. Slowing down and double-checking before acting is often enough to stop them. 1. Invoice fraud You receive an “invoice” that looks legitimate. It may even be timed to match your usual billing cycles. But the payment details have been quietly altered. 2. Vendor or supplier compromise Attackers access or mimic a vendor’s email account and send updated payment instructions, redirecting funds to a fraudulent bank account. 3. Executive impersonation A senior leader sends out an email with an “urgent request” to send a wire transfer. The message might emphasize confidentiality or time constraints to make employees act fast. 4. Payroll diversion An employee “updates” their direct deposit information. Without verification, the next paycheck goes straight to a fraudulent account. 5. Gift card scams A request from a “company leader” comes through, asking for bulk gift card purchases to surprise the team with a well-earned reward. The gift cards are delivered to a fraud-friendly address. What can you do to stop email fraud? A strong defense doesn’t require complicated tools. All you need is a clear process and good guardrails. 1. Train your team regularly Training doesn’t need to be complex — short refreshers each quarter go a long way. Employees should feel confident recognizing red flags like: Pressure or urgency in unexpected requests Slight changes to company email addresses Breaking normal or established processes Instructions to keep transactions confidential 2. Turn on Multi-Factor Authentication (MFA) This is one of the simplest and highest-impact steps you can take. Most account takeovers start with stolen passwords, but adding a secondary form of authentication (like a code sent via text or email) dramatically reduces your company’s risk of third-party logins. 3. Verify all financial requests through a trusted channel Before sending money or changing payment details, require a second confirmation via phone or in-person conversation. Never reply to the email directly if you suspect a scam. 4. Strengthen your email security Small steps add up to big impacts. Basic security protocols are often overlooked, even at large organizations. Here’s what you can do to help prevent email fraud: Require strong, unique passwords Implement routine password updates Add anti-phishing security tools 5. Use email authentication protocols (DMARC, SPF, DKIM) These settings help you identify impersonated emails and prevent spoofing by verifying unique digital signatures. You can think of it like having your system check the sender’s ID at the door. Your IT team or service provider can implement them quickly and easily. 6. Limit access to sensitive systems Give employees access only to software that’s essential for their role. Having fewer access points reduces your company’s risk of a data breach. 7. Create a simple response plan A quick response can minimize or prevent the damage caused by an attempted attack. Your team should know: How to report suspicious messages Authenticate a request that may not be legitimate What to do in the event of a suspected breach Start building a culture of prevention Business Email Compromise is a serious threat, but it’s also one you can prepare for. When your organization combines smart training, clear procedures, and common-sense protections, you create a reliable defense against email fraud. For questions about fraud prevention, reach out to our team. We’re always here to help you put safety and soundness first. 5 min read

Fraud Alert: Impersonation Scams What’s an impersonator scam? Fraudsters can mask their phone numbers and email addresses to look like they are contacting you on behalf of someone at First Bank. They will ask you to validate your account by providing your online banking username, password, or secure access code. With this information, they could attempt to hack into your account. How to avoid this scam: To keep your accounts safe, remember that First Bank will never ask you for a security code, multifactor authentication code, username, or password. Your login credentials should never be shared with anyone. If someone contacts you from First Bank and asks for any of this information, hang up and stop all communication immediately. Manually dial our customer support team at 1-866-792-4357 and report the incident. What does an impersonator scam look like? Impersonator scams start with a phone call, text message, or email that appears to come from a trusted source—like First Bank, a government agency, or a well-known company. The scammer will spoof the caller ID or email address to make it look legitimate. Here’s an example of what a fraudulent text message could look like. Notice that the text message on the left asks for User ID and the other is prompting you to click a fraudulent website link. The scammer will create a sense of urgency or a situation where you need to take some sort of action – like replying to a text message or clicking a link. From there, they will ask for sensitive details like your online banking username, password or a secure access code. These scams can be highly convincing, often using official sounding language. Stay Vigilant, Stay Secure Impersonator scams are designed to catch you off-guard, but with awareness you can stay one step ahead. Always remember: First Bank will never ask for your login credentials, secure access codes, or personal information through unsolicited calls, texts, or emails. If something feels off, trust your instincts—hang up, don’t click, and contact us directly. For additional security tips on how to protect your accounts, spot the warning signs, and protect yourself against scammers, visit our Fraud Resources page. 2 min read

How To Avoid Scams After Weather Emergencies and Natural Disasters Potential Scam Scenarios Scammers use a variety of tactics to exploit people during the aftermath of disasters. Here are some of the most common scams to watch out for: 1. Imposter Scams Scammers often pose as safety inspectors, government officials, or aid workers, claiming they are there to help. They may ask for sensitive information or upfront payments for services, such as inspections or applications, that are usually provided for free by legitimate organizations. 2. FEMA Impersonators One common scam involves individuals impersonating FEMA (Federal Emergency Management Agency) representatives. They may offer to help you with your FEMA application but will charge an upfront fee, which is not a part of any legitimate FEMA process. FEMA does not charge for applications or assistance. 3. Home Improvement and Debris Removal Scams After a natural disaster, many people need repairs to their homes or businesses. Scammers may pose as contractors offering quick debris removal or repairs but will often demand large sums of money upfront or perform subpar work, leaving victims with little recourse. They may also disappear after taking payment, leaving your property in worse condition. Recognize the Signs of a Scam While scammers can be clever, there are warning signs that can help you spot fraudulent behavior. Keep an eye out for these red flags: No Licensing Required: Scammers may claim they don’t need a license to do the work, which is false. Legitimate contractors should always have a valid license and insurance. Pressure to Sign a Contract Immediately: Scammers often offer a “discount” or say they can only fit you in if you sign a contract on the spot. This tactic is meant to pressure you into making a decision without careful consideration. Signing Over Your Insurance Check: If a contractor asks you to sign over your insurance claim check, beware. This can leave you vulnerable if the work is incomplete or of poor quality. Full Payment Upfront: Asking for full payment before any work is completed is a big red flag. Reputable contractors typically ask for a partial deposit, with the balance due upon completion of the work. Unusual Payment Methods: If someone asks you to pay by wire transfer, gift card, or cryptocurrency, it’s likely a scam. These payment methods are difficult to trace and recover if the contractor disappears. Ways to Avoid a Scam Protecting yourself after a natural disaster requires both awareness and due diligence. Here are steps you can take to reduce the risk of being scammed: 1. Know that FEMA Doesn’t Charge Application Fees FEMA provides disaster assistance for free, and they never charge for processing your application. If someone asks for money to help you qualify for FEMA funds, it’s a scam. Always verify through FEMA’s official website or hotline to ensure you’re dealing with legitimate representatives. 2. Verify Your Insurance Coverage Don’t rely on a contractor to tell you what your insurance covers. Always contact your insurance company directly for details about your policy. Additionally, never sign over your insurance check to a contractor. You want to maintain control over how your funds are spent to ensure the work is completed properly. 3. Be Skeptical of Immediate Offers for Repairs or Clean-Up In the rush to clean up or make repairs, it can be tempting to accept the first offer that comes along. However, unlicensed contractors and scammers often show up in disaster-affected areas promising fast fixes. Be cautious of anyone who demands cash upfront or won’t provide copies of their license, insurance, or a written contract. If they refuse to give you any of these, walk away. 4. Get a Written Contract and Read it Carefully Contract requirements vary by state, but even if your state doesn’t mandate a written agreement, always request one. A contract should outline the scope of work, materials to be used, payment schedules, timelines, and any guarantees. This provides you with legal protection if the contractor fails to deliver on their promises. Take Action: Protect Yourself and Your Community As we work together to rebuild after disasters, staying informed is the best defense against scams. Share this information with friends, family, and neighbors so that everyone in your community is aware of these fraudulent schemes. If you suspect you’ve encountered a scam or have been the victim of fraud, report it to local law enforcement, the Federal Trade Commission (FTC), or FEMA’s Disaster Fraud Hotline. Recovering from a natural disaster is hard enough without having to deal with the fallout from scammers. By recognizing the signs and taking the proper precautions, you can help ensure that your recovery is smooth, safe, and scam-free. Additional Resources: Hurricane Helene: Recovery Scams How to Avoid Imposter Scams How To Avoid Scams After Natural Disasters Picking Up the Pieces After a Disaster Stay safe, stay informed, and protect yourself from those who might try to take advantage during these challenging times. 5 min read

Money Mule Scams: How Criminals Convert Fraud into Profit What is a Money Mule? Money mules are individuals who unknowingly or knowingly assist criminals in laundering money, often by transferring illegally sourced funds between accounts or across borders. The source of the money comes from fraudulent scams or other illegal activities like drug trafficking. Criminals use their mule’s identity and layer the illegal transactions in an attempt to hide the illegal funds from law enforcement. Once properly hidden, the criminals are able to access their funds and cash out on their illegal activity. Common Money Mule Scams There are a number of ways that criminals will try to hide their money from law enforcement. Money mules are a form of money laundering, where criminals attempt to make their illegally sourced funds seem legitimate. Here are a few common ways people can unknowingly fall victim to money mule scams. 1- Deceptive Job Offers Money mule scammers will act as employers offering high-paying, remote positions. Common job titles could be payment processor, financial coordinator, or international fund liaison. While these job opportunities seem legitimate, their primary function is to receive and transfer illegal funds. The criminal will wire a large sum of funds to the mule, then instruct them to keep a percentage and transfer the remainder of the money to a different account or purchase a certain amount of cryptocurrency. The criminal hides behind their mule’s identity and is able to more easily access their funds. 2 – Romance Scams This type of mule scam exploits a victim’s emotions and trust. Scammers will find their victims on social media sites, dating sites or other online chat channels. They will deceive their victims with made up personas often using stolen photos and fake details. Over time, the scammer will attempt to build an emotional connection by sending affectionate messages or personal stories. Once they feel they have earned the victim’s trust, they will fabricate a story requiring financial assistance. These are oftentimes medical emergencies or travel issues that need quick funding into an account. Once the scammer has convinced their victim to oblige, they will continue to exploit their trust to launder their illegal funds. 3 – Lottery, Prize, and Investment Scams If something seems too good to be true – it probably is. These scams typically start via an unsolicited message or phone call informing you that you’ve won a prize. They instruct their victims to take a number of steps before they can claim their prize, and that is where the danger lies. These steps could include gathering your personal details, wiring a “prize tax” or fraudulent fee, accepting a large sum of money, and/or transferring a portion of the winning funds to another account. Similarly, investment scammers typically promise their mule victims “return” for their illegal money transfers – sometimes in the form of cryptocurrency or percentages of the money they wire. What are the Consequences? Large overdraft balances are most often the first consequence to the money mule. Once the criminal has access to their mule’s account, they typically push a large lump sum out of the account. This amount oftentimes will exceed the typical balance in the mule’s account, leaving them with a substantial negative balance to dig out from. Acting as a money mule is illegal, whether the crime is knowing or unknowingly committed. The punishment for these crimes include imprisonment and federal charges. Additionally, your identity and personal information could be stolen from the criminals involved in the money mule scheme. Internet Crime Complaint Center (IC3): The IC3 is run by the FBI and accepts online internet crime complaints from the victim at www.ic3.gov How to Protect Yourself As with most methods of protecting yourself against fraud – remain cautious whenever someone requests your personal information or banking information. Only share those details with people or organizations that you trust. If you receive a job offer from an online business, do your due diligence to confirm they are a legitimate company. Additionally, a legitimate employer will not ask you to form a company or open a new bank account on their behalf. Always be cautious if anyone asks you to wire or transfer money on their behalf. Be weary if something seems too good to be true, like you’ve won an unsolicited prize or been chosen to participate in a giveaway. Scammers act on urgency. If someone is pressuring you to do something that you’re uncomfortable with, walk away. If you or someone you know is afraid they are involved in a money mule scheme, it’s not too late to stop. Stop communicating with the person giving the directions. Tell your financial institution and consider changing accounts. Report suspicious communications or activity to law enforcement. The Internet Crime Complaint Center (IC3) is the Nation’s central hub for reporting cyber crime and run by the FBI. Visit www.ic3.gov for resources and more information about how to file a report. Maintain receipts, contact information and communications (emails, text messages, voicemails) so that information can be passed to law enforcement, if needed. 5 min read

Protecting Your Business from Counterfeit Currency Know Your Money The first step to fighting back against counterfeit currency is to know the ins and outs of what a legitimate bill looks like. Familiarize yourself with the security features of true U.S. currency so you know what to look out for. You can view examples of all denominations through the U.S. Currency Education Program website. Each note issued by the Federal Reserve includes unique security and design features that are periodically redesigned by the U.S. government to make them more difficult to counterfeit, so make sure you stay up-to-date on what’s new. Feel the Difference Embrace your tactile senses and take time to feel the quality of the cash you are being presented with. U.S. currency paper consists of 25% linen and 75% cotton with red and blue security fibers embedded throughout the paper that is not sold commercially, giving them a unique texture and feel. If you are presented with a bill that feels slick, there’s a good chance it was printed on lower-quality paper and has been counterfeited. In addition to the feel of the paper, genuine bills will have raised ink which adds to their unique feel. 4 min read

Fraud Prevention Checklist Arm yourself with the knowledge to fight back against scammers with our 2024 fraud prevention checklist. Empowering you to be informed, cautious, and proactive in avoiding fraud. 7 min read

New to Working From Home? Here’s How to Do It Safely To help mitigate the threat of COVID-19, businesses and employees are finding themselves taking part in the biggest “work from home” experiment ever tried. If you are one of those business owners or employees, here are some security tips to help protect you and your data while you work in your home office. 3 min read

Staying Safe from Tax Scams We received the following very handy and timely article from the Multi-State Information Sharing and Analysis Center (MS-ISAC) in regards to staying safe during this season of numbers crunching and record keeping for taxes. As always, if you have any specific tax questions, be sure to consult a tax prep professional. Watch out for these scams Unfortunately, much of your personal information can be gathered from multiple locations online with almost no verification that the right person is receiving the information. Criminals know this and use the information to file a fake tax refund request! If a criminal files a tax return in your name before you do, they will file it with false information to get a large refund, forcing you to go through the arduous process of proving that you did not file the return and subsequently correcting the return. Once they have your personal information, criminals can continue to commit identity theft well beyond the tax season. Another favorite technique used by criminals during the tax season is sending phishing messages indicating that a new copy of your tax form(s) is available. These emails often impersonate state, local, tribal, and territorial government comptroller or IT departments. If you fill out or attempt to login into the phishing website, the criminals will be able to see your login name and password, which they can then use to try and compromise your other accounts. The more information they gather from you, the easier it is for them to use the information to file a fake tax return in your name. Lastly, tax fraudsters also impersonate the IRS and other tax officials to threaten taxpayers with penalties if they do not make an immediate payment. It is important to remember: The IRS will not initiate contact about payment with taxpayers by phone, email, text messages, or social media without sending an official letter in the mail first. The IRS will not call to demand immediate payment over the phone using a specific payment method such as a debit/credit card, a prepaid card, a gift card, or a wire transfer. The IRS will not threaten to immediately notify local police or other law-enforcement agencies to have you arrested for not paying. 4 min read

No-Cost Information Security Tips for Businesses There’s never a bad time to set goals and get a fresh start, especially when it comes to taking steps to prevent fraud losses for your business. 3 min read

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