How to Identify Risks of Financial Scams

What banks often miss is exactly where criminals strike. I had a case that perfectly illustrates the gaps. A criminal opened a new business banking account. They deposited large checks that were legitimate and made out to what appeared to be the same business. But here’s the truth: 🚩 The checks were stolen from the real business. 🚩 The fake business had a similar name to the real one. 🚩 It had a real EIN and a virtual address in another state. 🚩 The LLC was set up the same day as the bank account. 🚩 The criminal claimed they were generating $1M+ in revenue... within 24 hours of formation. 🚩 The business was registered in one state but claimed to operate in another where it wasn't registered. 🚩 And the biggest red flag? All deposited checks were withdrawn the same day. What did the bank miss? The inconsistencies. The urgency of withdrawals. The lack of operational history. The false legitimacy veneer crafted using public tools like EIN registration and virtual mailboxes. Meanwhile, the real business? They suffered delayed payments, lost vendor trust, and had to explain why checks that vendors mailed never reached their account. Their reputation was damaged—and the bank unknowingly helped do it. Fraud isn’t always loud. Sometimes, it’s built with real documents and fake intentions. If you're in banking, train your teams to look past surface-level legitimacy. 🔎 Investigate deeper. 📉 Look at account behavior. 🌐 Verify businesses beyond what’s on paper. The next fake LLC is already being filed. The question is: Will your bank catch it, or help fund it? You can't stop what you don't know. #FraudHero #fraudprevention #fraud #bankfraud

What Heads of Risk think they should be worried about: - Sophisticated AI cyberattacks - Quantum computing breaking encryption 😵💫 - Complex, multi-stage fraud schemes 👮♀ What they actually should be worried about: - Fake accounts and AI-generated credentials 🪪 - Legitimate business falling on hard times 📉 - Old tricks like card-not-present (CNP) scams 💳 Let's talk about that last one. So many CEOs and heads of risk reach out to me after a loss event involving this exact scenario. Normal account, no red flags on signup, then BAM - hundreds or thousands of purchases in quick succession 👎 Generally, it's one of two scenarios: - A bunch of low-value transactions to test stolen credit card information, before using the valid cards on bigger fraud 📊 - A normally quiet account suddenly starts running large transactions, often just before the cardholder realizes their details were stolen 📈 Real-time, it's really hard to catch this - seconds and minutes matter. You have to be forward-thinking, and proactively looking for the warning signs 🔎 Do things like: - Use AI-driven merchant profiling to detect fraud at sign-up, blocking high-risk accounts before they transact 👀 - Automate anomaly detection with rules-based alerts that flag unusual payment behaviors without excessive manual review 🧐 - Continuously assess merchant risk, not just at onboarding, but throughout the lifecycle, using ongoing monitoring and automated risk scoring ✅ CNP attacks aren't going away, but your revenue and credibility will if you keep falling for them and don't have the right guardrails set up. If this has you worried, let's chat 🫡

Yesterday, I had a firsthand encounter with a potential scam that serves as a stark reminder of the importance of vigilance in the digital age. A caller claiming to be from my bank informed me that my Debit Card was blocked and needed immediate activation. What raised alarm bells was the request for my Debit Card number and other personal details. All this happend during my transit. One will be for sure worried about cards being active during travel. How smart the scammers are becoming. 🚨 Beware of Scams: Protecting Your Financial Well-being 🚨 Having spent years in the banking industry, I was fortunate to recognize this as a scam and promptly took action to protect myself. But it got me thinking – this could happen to anyone, including you or your loved ones. Scammers are becoming increasingly crafty, and it's crucial to stay one step ahead. Here are 5 essential ways to safeguard yourself from such scammers: 1. Verify Caller Identity: Always double-check the identity of the caller, especially if they claim to represent your bank. Hang up and call your bank directly using the official contact information listed on their website or your physical debit card. 2. Guard Your Personal Information: Never disclose sensitive information, such as your debit card number, PIN, or other personal details, over the phone or via email. Legitimate financial institutions will never request this information in such a manner. 3. Don't Succumb to Pressure: Scammers thrive on creating a sense of urgency and fear. If you're pressured into making immediate decisions or face threats of consequences, take a step back. Legitimate organizations will allow you time to verify their claims. 4. Educate Your Circle: Share your experiences and insights with your family and friends, especially those who might be more vulnerable to scams. Awareness is a potent tool in fraud prevention. 5. Leverage Technology: Use caller ID, call-blocking apps, and verification tools to screen and identify potential scams. These tools can be invaluable in filtering out suspicious calls. It's crucial to remember that scams can take various forms, and scammers adapt their tactics to stay ahead. Our collective awareness and vigilance can help combat these threats effectively. Let's stay safe, informed, and empower our communities against financial fraud. Your experiences and knowledge could be the shield that protects someone else from falling victim to a scam. 💪💳 #Money #finance #ScamAwareness #FinancialSafety #ProtectYourself #cybercrime

Impersonation scams are up 148% and every CISO has seen it- on everything- email, text, messaging apps, phone calls…. Whether it’s fake CEO emails/texts, vendor fraud, or BEC-enabled theft, the rise is sharp and real. Key threats: * BEC 2.0 — Generative AI makes executive impersonation far more convincing * Retail risk — Fake purchase orders, refund fraud, and supplier cons are on the rise * CEO impersonation — Used to push urgent transfers, influence M&A, or mislead staff A few things to do as we get smarter about this evolving threat: - Lock down email: SPF, DKIM, DMARC - Confirm financial instructions out-of-band (make this part of procedure!) - Teach employees to pause, question, and escalate (tough to do!) - Use behavioral AI, if you can, to detect anomalies - Have a BEC-ready incident plan- including your law enforcement contact info (probably should be the #1). For US- Report impersonation scams: https://www.ic3.gov

I’ve spent decades investigating financial crimes—first as an FBI Special Agent, now as a licensed private investigator. One issue I still see too often? Companies giving one person too much financial control. Here’s a simple but critical example: The person who has access to your company’s bank account should not be the same person maintaining your accounting records. When one individual can move money and cover their tracks in the books, that’s a recipe for fraud. It’s not about mistrusting your team—it’s about protecting your business and the people who depend on it. Segregation of duties is one of the most effective ways to reduce risk. It’s a basic internal control, but it’s often overlooked—until it’s too late. Now’s a good time to ask: Who has access to what in your organization? #FraudPrevention #InternalControls #SmallBusinessTips #Accounting #PrivateInvestigator #SegregationOfDuties #FinancialIntegrity

🚨Fraud Alert!🚨 This one's for us, my fellow accountants. Between August 2023 and April 2024, fraudsters exploited the IRS Practitioner Priority Service (PPS) line, filing nearly 5,000 fraudulent tax returns and claiming over $462 million in refunds. While most of these were caught, 574 fake returns did make it through, resulting in $47 million in losses according to an article in the Journal of Accountancy. So how did they do it? Fraudsters stole legitimate tax preparers’ credentials, such as PTINs and CAF numbers, through phishing scams, social engineering, and just plain hacking. Using these stolen numbers, they bypassed weak authentication protocols on the PPS line, accessed taxpayer accounts, and filed fraudulent returns to claim refunds. The IRS has since implemented stronger controls, but this incident is an important reminder for all of us: ➡️ Stay vigilant: protect your credentials by using strong passwords, enabling two-factor authentication, and monitoring IRS accounts for unauthorized access ➡️ Consider physical security: take a look around your office and ensure that no sensitive information is easily visible. Remove any sticky notes with passwords and file sensitive documents securely. ➡️ Advocate for security: push for ongoing improvements in IRS authentication protocols to prevent future breaches - they only made improvements to their systems in April 2024, at the end of the scam! ❓ What steps do you currently take to protect your credentials and passwords? ----------------- I'm Anna. I post content on how accounting firms can protect their clients from fraud using traditional prevention tactics, financial analytics, and AI. Follow me to learn how you can keep your business clients safe from fraud! #TaxFraud #FraudPrevention #Accounting #AccountantsandAccounting #CPAs #TaxPractices

Hidden Vulnerability: The Human Element Business leaders often underestimate certain critical aspects of cybersecurity, which can leave their organizations vulnerable. Among these, one of the most overlooked—and exploited—area is human element which is very significant but underestimated. Scenario: Deepfake Fake Fraud-Executive Voice Impersonation Attackers use deepfake to mimic a CFO’s voice, exploiting authentication gaps to deceive employees into authorizing fraudulent transactions. This incident poses significant risk and exposes vulnerabilities in the company's authentication protocols. ⚠️ Cyber insurance policies may exclude coverage for losses caused by AI attacks as well as lack of authentication. 👀 Pay attention to policy language that excludes any loss, damage, or claim resulting from the use of deepfake technology, including audio, video, or image manipulation, such loss can be attributable to: 👉 Failure to Authenticate: verbal confirmation, or secure communication channels for verifying sensitive requests. 👉 Inadequate Verification: Failure to have or follow internal procedures for validating financial transactions. 👉 Lack of Awareness: Failure to provide regular employee training on identification and response. 🎬Take Action: ➡️Verify Insurance Coverage Review your cyber insurance policy for exclusions related to deepfake attacks. Confirm it covers losses tied to AI-based fraud and ensure compliance with specific authentication requirements to avoid claim denials. ➡️Strengthen Internal Verification Procedures Implement mandatory dual approvals for high-value transactions and use secure communication channels for all sensitive requests. ➡️Enhance Employee Training Conduct regular, scenario-based training to help employees identify deepfake fraud attempts. 💫By aligning insurance coverage with resilient risk strategies, businesses can turn their greatest vulnerability, the human element, into a formidable defense. Proactive measures help to mitigate the immediate threats and build a foundation of resilience against evolving cyber risks. #humanelement #cyber #defense #insurance #exclusions #resilience #protectwhatmattersmost

Let’s take a moment to address a serious issue that affects many customers: credit card scams. With the rise of digital transactions, it’s more important than ever to stay vigilant and informed. As a technology leader at Chase, I wanted to share a few tips to help you safeguard your financial information: 1. Monitor Your Accounts: Regularly check your bank and credit card statements for any unauthorized transactions. Report any suspicious activity immediately. 2. Utilize Chase's Credit Journey ID Monitoring: Take advantage of our Credit Journey service, which provides free credit monitoring and alerts calling out changes to your credit report. Anyone can use this free tool can help you spot potential fraud early. You don’t have to be a Chase customer. 3. Beware of Phishing Scams: Be cautious of unsolicited emails, texts or phone calls asking for personal information. Always verify the source before sharing any sensitive data. 4. Use Strong Passwords: Create complex passwords for your online accounts and change them regularly. Consider using a password manager to keep track of them securely. 5. Enable Two-Factor Authentication: Adding an extra layer of security can significantly reduce the risk of fraud. Whenever possible, enable two-factor authentication on your financial accounts. 6. Stay Informed: Educate yourself about the latest scams and tactics used by fraudsters. Knowledge is one of the best defenses against becoming a victim. At Chase, we are committed to keeping your information safe and secure. Our advanced security measures help protect your accounts, but your vigilance is crucial. Together, we can combat credit card fraud and keep our communities safe. Check out this recent post to learn more about steps you can take if you suspect your identity has been stolen. Stay alert and protect your financial well-being! #FraudPrevention #SecurityFirst #CreditJourney

A few weeks ago, I shared how I’d almost gotten scammed. And your support touched my heart.❤️ To say thank you, here’s a quick list of 7 tips to protect yourself against scammers! //1 Where does their first message come from? Email is still the most traditional path for serious offers, alongside VO platforms.   Serious proposals are less likely to come through: - A text - Telegram - WhatsApp - Social media Of course, scammers do use email and real offers can come through other platforms. So think of this as one checkpoint to consider amidst other factors. //2 Do a mini background check. If they claim they’re from a company, look into it: → Head to the website and look for them on the team page. → Search the company on LinkedIn and look for them under employees. If you can’t find them, reach out to the company or to a higher-up on LinkedIn to verify. //3 Check the email domain. Often, there will be small differences in a scammer’s email domain. For instance, take apple. Their domain is @apple .com. The domain of someone scamming as Apple might look like: - ap-ple .com - apple_support .com - apple. .com //4 Check the body of the message. Often, you’ll find: - Typos - Misspellings - Odd phrasing - A less professional tone - Line breaks that don’t make sense //5 Ask for a deposit up-front. If it’s for a larger project, ask for a deposit up-front. If they’re a scammer, they’ll either not respond or say no. But most true professionals will understand, respect, and consider your request. //6 Don’t open a new bank account. No professional job offer will ask you to:  - Send them money - Create a new bank account that requires a deposit to open If they ask for this, odds are they’re a scam. Any professional should be able to use PayPal, Venmo, Zelle, or ACH deposits for any of the major banks. //7 Trust your gut If it feels off, trust that feeling. Do your due diligence. And if it feels like the pieces just aren’t coming together, don’t waste more of your time. Just block and move on. And if you feel like it, post about it in VO communities to help others avoid it in the future. (❤️🙏 I’m so grateful that others posted about the scammers pretending to be TransPerfect so I could avoid the scam myself!) __ Of course, none of these are foolproof, and scammers get trickier every day. But it at least gives you a starting point for vetting suspicious jobs! → Anything you’d add to the list? #scams #voiceover #bestpractices #transperfect