Bank Impersonation Scams Are Targeting Businesses: What You Need to Know to Stay Protected

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.

$12.5 Billion Lost to Bank Scams in 2024

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.

Recovery Is Difficult and Time-Sensitive

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.

Common Bank Scam Tactics to Watch For

• Caller ID Spoofing: Scammers can make it appear as though they're calling from your bank.
• Urgency and Panic: They’ll tell you your account is compromised and needs immediate attention.
• Requests for Verification Codes or Personal Info: You may be asked to share account details, passwords, or one-time passcodes.
• Payment Redirection: Some scams request payments through wire transfers or prepaid cards.
• AI-Enhanced Calls: Some use synthetic voices or prerecorded audio to impersonate real bank employees.

How to Protect Yourself and Your Team

Here are steps you and your employees can take to help reduce the risk:

• Verify the Caller: Hang up and call your bank directly using the number on the back of your card or the bank's official website.
• Never Share One-Time Passcodes: Legitimate banks will never ask you to share an OTP or password over the phone.
• Pause Before Acting on Urgency: Take a moment to verify the situation before reacting to high-pressure tactics.
• Stay Away from Suspicious Links: Don’t click on links in texts or emails unless you’re sure they’re legitimate.
• Educate Your Team: These scams can target anyone in your organization. Ensure that your employees are trained to recognize warning signs or red flags.
• Enable Extra Security: Use two-factor authentication and sign up for bank alerts where available.
• Monitor Accounts Closely: Check your accounts daily and report anything unusual immediately.
• Report Fraud Quickly: File a report with the FTC at ReportFraud.ftc.gov as soon as you suspect a scam.

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.