Jennifer, you spotted a fraudulent situation started with a simple request at the teller line. But after a conversation with your customer, you noticed that something wasn’t right. Tell us what happened.
Jennifer: Recently, a customer came into the bank requesting a large cash withdrawal from their account.
And with large cash withdrawals that are out of the ordinary for a customer, we ask a few questions, right?
Jennifer: Right. The customer explained that an online service provider had contacted them saying the service provider had mistakenly reimbursed the customer too much money. The person the customer was communicating with claimed to be a new employee worried about getting fired for the mistake. This person then asked our customer to withdraw the excess money and deposit it into an ATM for the company's account.
Whoa…that seems a bit suspicious.
Jennifer: Exactly. The scenario raised some red flags for me. I invited the customer into my office to discuss the situation further. Upon reviewing their accounts, I noticed that while there was money appearing to be deposited into their checking account, the funds had actually been transferred from one of the customer’s other accounts into the checking account. This created the illusion of a deposit that the customers wasn’t expecting. To the customer, the scenario the online service provider described seemed plausible.
But you followed the money trail and noticed something seemed very off about the whole situation. What did you do next?
Jennifer: I contacted our Deposit Operations team to verify my findings, and they confirmed my suspicions. I advised the customer to immediately unplug their home computer and provided them with contact information for a business that could clean their system. This “online service provider” had in fact gained unauthorized access to the customers accounts and completed the transfer as part of their scam to get the customer to send money directly to the scammer. We placed restrictions on their accounts until all transactions were verified and then opened new accounts for the customer. Additionally, we shut down their online banking and helped create a brand-new account for the customer.
The Horicon Bank team took every precaution to make sure the customer’s accounts were protected. How did the customer feel after this happened?
Jennifer: The customer was extremely grateful for our assistance in preventing the scam.
What are some key tips to avoid falling victim to similar fraudulent schemes?
- Verify the Source: Always verify the identity of the person or company contacting you. Use official contact information from the company's website.
- Be Skeptical of Unusual Requests: If someone asks you to withdraw money and deposit it elsewhere, especially into an ATM, be cautious. Legitimate companies do not operate this way.
- Check Your Accounts Regularly: Regularly monitor your bank accounts for any unusual or unauthorized transactions. If you notice anything suspicious, contact your bank immediately.
- Consult with Your Bank: If you receive a request that seems unusual or suspicious, consult with your bank before taking any action. Bank employees can help verify the legitimacy of the request.
- Protect Your Computer: Ensure your computer is secure by using up-to-date antivirus software and avoiding clicking on suspicious links or downloading unknown attachments.
- Educate Yourself: Stay informed about common scams and fraud tactics. Knowledge is your best defense against fraud.
What should a person do if they suspect they are being targeted by a scam?
- Stop Communication: Cease all communication with the suspected scammer immediately.
- Contact Your Bank: Inform your bank about the situation. Your banker can help secure your accounts and provide guidance on the next steps.
- Unplug Your Computer: If you believe your computer may be compromised, unplug it from the internet to prevent further unauthorized access.
- Seek Professional Help: Contact a reputable business to clean your computer and ensure it is free from malware or other security threats.
- Report the Scam: Report the scam to relevant authorities, such as the Federal Trade Commission (FTC) or your local consumer protection agency.