Recently, two of our commercial clients in different states experienced the same type of fraudulent scheme, resulting in losses for both.
Here’s what happened:
Each client received a phone call that appeared to be from their bank. The caller ID even showed the correct bank name. The person on the line claimed to be from the bank's fraud department and asked the client to confirm whether certain charges were legitimate. When the clients claimed the charges were not theirs, the caller stated that a verification code would be sent and needed to be entered to stop the fraudulent activity.
That verification code, however, was actually the key that unlocked the clients' accounts for the scammers. Once entered, the money was quickly stolen.
Unfortunately, these types of scams are becoming more frequent and more convincing.
According to the Federal Trade Commission, Americans lost more than $12.5 billion to scams in 2024. That’s a 25% increase from the prior year. A large portion of that total was tied to bank impersonation fraud.
These scams are successful because they feel urgent and personal. Caller ID spoofing makes them look legitimate. The scammer sounds professional and already has some information. In some cases, AI is used to make the caller sound like a real person from your bank. And by the time you realize something's off, your account may already be compromised.
If a scam like this happens, timing is everything. Banks can sometimes recover funds, but the chances of doing so drop significantly after the first few hours. Acting within one or two hours can result in a 90–100% recovery rate. After six hours, recovery rates can drop below 20%.
That’s why awareness and prevention are so critical.
Here are steps you and your employees can take to help reduce the risk:
We’re sharing this information because this scam isn’t theoretical; it’s already affecting commercial clients just like you. The faster you recognize these tactics, the better protected you’ll be.
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