Recently, two commercial clients in different states fell victim to a fraudulent scheme that resulted in financial losses. The incidents involved phone calls that appeared to come from their bank's fraud department. Caller ID showed the correct bank name, adding credibility to the call.
During the conversation, the caller asked clients to confirm certain charges on their accounts. When the clients denied authorizing these charges, they were told a verification code would be sent to stop further fraudulent activity. However, entering this code allowed scammers access to their accounts, leading to swift theft of funds.
The Federal Trade Commission reported that Americans lost over $12.5 billion to scams in 2024, with a significant portion linked to bank impersonation fraud. These scams are effective due to their urgent and personal nature. Scammers use caller ID spoofing and may employ AI technology to mimic real bank personnel.
If such a scam occurs, prompt action is crucial for fund recovery. Banks can sometimes retrieve stolen money if contacted within one or two hours after the scam; recovery rates range from 90–100%. After six hours, chances drop below 20%.
Awareness and prevention are essential. Sharing information about these tactics can help protect potential victims by recognizing signs of fraud early.