Understanding Investment Scams: What You Need to Know

Investment scams are deceptive schemes that trick individuals into investing money with promises of high returns. Instead of making legitimate investments, scammers take the money for themselves, leaving the victim with a significant financial loss. These scams can wipe out your life savings in the blink of an eye, making it crucial to recognize and avoid them.

Common tactics used by scammers include guarantees of high returns with little to no risk, high pressure to invest quickly, and unsolicited offers. These red flags are essential to recognize to protect your hard-earned money.

A Real-Life Story: Mrs. C’s Ordeal with an Investment Scam

Mrs. C, a Fortress Union Bank customer, was contacted by someone on Facebook Messenger claiming to be a well-known figure. After building her trust over several weeks, the scammer convinced her to switch to a more secure messaging app, Telegram, to discuss a ‘fool-proof’ investment opportunity.

Mrs. C was instructed to open a Bitcoin account and make several deposits, totaling $14,000. Initially, her investment account showed a profit of $500,000. However, to withdraw her profits, she was told that she needed to deposit $4,000 to cover fees. She didn’t have the cash on hand to pay fees, so the scammer offered to deposit a check for $10,000 to her personal bank account. She then transferred the funds to her Bitcoin account. Every day this account accrued fees, so the scammer sent another check for her personal bank account to cover them.

When she tried transferring additional money to cover the latest fees, she discovered her personal bank account had been frozen. This discovery was made while Mrs. C  was traveling on vacation – out of state.

How Fortress Union Bank Stepped In to Help

Fortress Union Bank’s Fraud Prevention Department was able to contact her and explain that the checks from the scammer were returned as counterfeit, causing her account to be overdrawn. Horrified, Mrs. C expressed her distress and the difficulty of her situation.

The Fraud Prevention Manager calmly notified her that this was unfortunately a classic example of an investment scam but assured her that the Fraud Prevention team would be there for her and give her the support she needed. They worked closely with Mrs. C., explaining all the red flags and giving her reassurance on how to protect herself from bad actors in the future.

While the Fraud team helped Mrs. C. understand what happened and why, the local Fortress Union Bank branch immediately contacted her son, who acted as her representative. They opened a new account online and deposited enough funds to cover her overdrawn account. This gave Mrs. C enough peace of mind to continue with her vacation. She expressed immense gratitude for the care and understanding shown by Fortress Union Bank during her experience writing:

“I can honestly confirm I have never in my 69 years been treated so well with so much compassion and understanding by any bank. I have worked and lived all over the country for decades.  We are still on vacation and enjoying our restored existence! Thank you to all the bankers who made our recovery possible!”

Red Flags: Common Warning Signs of Investment Scams

To help you stay vigilant against investment scams, we have created an informative infographic highlighting the key warning signs to watch out for. This visual guide highlights 6 red flags to help you identify potential scams and protect your financial well-being.

Protecting Yourself: Practical Tips and Expert Advice

To protect yourself from investment scams, follow these practical tips:

• Do your research. Investigate before investing and check credentials.
• Be skeptical of high returns. If it sounds too good to be true, it almost always is.
• Avoid unsolicited offers. Scammers often use these methods to reach potential victims.
• Take your time. Do not rush; if you feel pressured to make quick decisions, this is a red flag.
• Verify the investment. Ensure the investment is registered with the appropriate regulatory authorities.
• Protect your personal information. Secure sensitive information.
• Be cautious of unusual payment methods, such as cryptocurrency or wires, which can be difficult to trace and recover.
• Educate yourself. Being informed can help you recognize and avoid scams.
• Consult experts. If you are unsure about an investment opportunity, seek advice from a trusted financial advisor.
• Report suspicious activity. If you suspect you’ve encountered an investment scam, report it to your financial institution.

Sources:
Cryptocurrency Investment Fraud, Federal Bureau of Investigation
What To Know About Cryptocurrency and Scams, Federal Trade Commission
Crypto Investment Scams, American Bankers Association

Report Scams

If you’ve been a victim of an investment scam or any other type of fraud, please contact your financial institution. Fortress Union Bank Customers can reach out to our Fraud Prevention Department:

Fortress Union Bank Fraud Prevention

800.914.6027
Mon. – Fri. 8 a.m. – 5 p.m. CT

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The post Investment Scams: A Real-Life Customer Story and How Fortress Union Bank Helped Out appeared first on Fortress Union Bank.

In our rapidly evolving digital landscape, staying ahead of these threats is essential. That’s where a Positive Pay system comes in, a proactive fraud prevention tool. It detects fraudulent transactions before money leaves your account. Whether you run a large corporation or operate solo, dealing with fraud can disrupt your business.

Here’s a breakdown of how Positive Pay keeps you in control of your financial transactions and keeps fraudsters out.

What is Positive Pay?

Positive Pay is an online system that helps you and your team ensure only approved ACH transactions or checks clear your business account and stops fraudulent transactions.

How does it work?

When you set up a Positive Pay account, you’ll set an approved list of vendors with parameters for those transactions. When transactions come through your account, the system will verify that those transactions match your approved list. If it doesn’t match, you’ll be asked to review it.

You will be notified if Positive Pay detects discrepancies between your transaction records and those potentially posted to your account. You will need to review the transaction and approve or reject the payment. There are two options with Fortress Union Bank’s Positive Pay system:

• ACH Positive Pay: Businesses can enroll in ACH protection services, which protect you against unauthorized digital transactions.
• Check Positive Pay: Check fraud protection is available for businesses who still rely on issuing checks.

This is a preventative measure to help protect your business against fraudsters and cyberattacks.

Can you give an example of how Positive Pay prevents check fraud?

Let’s say Sarah runs a flower shop. She runs the business alone, so she only issues checks to her suppliers for her inventory. One day, she receives a notification from her Positive Pay system alerting her to a potentially fraudulent check presented for payment. When she reviews the alert, she sees the image of the suspicious check. The check looks legitimate, but she doesn’t recognize the name written on it, and the signature appears to be forged.

She returns the transaction with a click of a button and continues her busy day.

Can you give an example of how Positive Pay prevents ACH fraud?

Alex runs a craft woodworking business. He leads a team that makes cutting boards, frames, and signs for an online store. Most of his cash outflow is digital, automatic payments.

One morning, Alex responds to email orders and receives a notification from the ACH Positive Pay system. It flagged a suspicious transaction that appeared to be from a utility company. As he reviews the alert, he notices a few red flags. The timing was off from their typical payment, and the amount was higher than usual.

He rejects the transaction through Positive Pay, closes his laptop, and hops to a meeting with one of his team leads.

How would I use it day-to-day?

Positive Pay is designed to be simple and integrate seamlessly into your business. Its easy to access for Fortress Union Bank customers, simply log in to Business Online Banking or use the business mobile app to access the Positive Pay service.

If you’re a solo entrepreneur who can’t keep track of the books daily, this system is a second check that proactively reviews transactions alerting you when your attention is needed.

In larger companies where several transactions happen daily, Positive Pay gives your team a real-time opportunity to review abnormal transactions and streamline monitoring for your accounting team.

If you enroll in ACH Positive Pay protection, you’ll set up some guidelines about what is ‘normal’ for your business. Add companies to an approved list or block unauthorized companies. Set up transaction parameters such as amount limits, frequency, and start and end dates.

With Check Positive Pay, you’ll upload a file with the checks issued on the business account or manually enter checks in the Positive Pay system. When checks are presented to clear your account, you’ll get an alert if something doesn’t match what’s been entered so you can review and decide whether to pay or return.

Ultimately, Positive Pay saves you time by being proactive instead of reactive to fraud.

How has it helped other businesses?

Positive Pay is designed to stop fraud in any business, whether you’re a sole proprietor or a big corporation. Stacie Wolter, a fraud analyst at Fortress Union Bank, says, “Fraudsters don’t discriminate. They’re after everybody, so you will benefit from Positive Pay if you write checks or pay using ACH.”

Positive Pay is a secure and convenient service for helping fight against fraud yet it’s only one piece of a collection of services that fall under the Treasury Management umbrella. Read more about the basics of treasury management which summarizes everything from making ACH payments and payroll to receiving online customer payments, paying credit card statements and managing overall business cash flow.

Please contact Fortress Union Bank’s Business Services team to learn more about Positive Pay and other business services available — 844.238.3838.

Stories from business owners like you can give you valuable insight into your own enterprise. Listen to Dream, Plan, Live: the Fortress Union Bank podcast for stories, how-to guides, and advice from the experts at Fortress Union Bank.

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The post Businesses fight back against fraud with positive pay system appeared first on Fortress Union Bank.

Why do you get so many robocalls?

According to the Federal Trade Commission (FTC), companies using autodialers can send thousands of phone calls every minute for an incredibly low cost. Some robocalls, like an appointment reminder, flight status update, prescription refill reminder and other purely information messages, are permitted by the FTC.

But, if the recording is a solicitation being used without your written permission to receive it, the call is illegal. Scammers and telemarketers use robocalling technology to reach a large number of people quickly. They can use autodialing systems to call thousands of numbers in a short amount of time, making it more likely they will reach someone who will be enticed to give them money or personal information.

Additionally, outdated phone number registries, data breaches, and the ability of robocallers to spoof phone numbers mean that even individuals who have not given out their phone number may still receive robocalls.

Why are robocalls so prevalent and hard to stop?

Many fraudulent robocalls use ID “spoofing” to fake the caller ID information you see on the phone, so you think the call you’re receiving is from a company you know or already do business with. When it turns out the call is a scam, the robocallers, who have used internet technology to hide their location, are difficult to track down.

Robocalls are prevalent because they are cheap and easy to make. Unfortunately, some robocallers are located in foreign countries where U.S. authorities cannot prosecute them. Additionally, robocallers often use spoofed phone numbers, making it harder to track them down.

The Federal Communications Commission (FCC) and other regulatory organizations have attempted to crack down on robocalls by implementing regulations, creating a national do-not-call registry, requiring phone companies to implement call-blocking technology, and even issuing fines of millions of dollars to violators. However, these solutions are often ineffective in stopping the calls altogether.

What to do if you get a robocall

If you receive a robocall, there are a few things you can do to protect yourself.

First, don’t engage with the call. If you do answer and realize it is a robocall, hang up immediately. That’s it. Don’t try to argue your case with a fraudster. Engaging with the call could lead to the robocaller attempting to scam you or obtain personal information.

If you have been scammed by a robocaller or have received a particularly threatening call, you can take the following steps:

• Report your experience to the Federal Trade Commission (FTC)  online or by phone at 1.888.382.1222.
• Contact your local law enforcement agency.
• Email Fortress Union Bank to take the necessary steps to protect your accounts. And remember, Fortress Union Bank will never ask you to give your account information, PIN, or password to us over the phone!

Technology that helps you remember your dental or hair appointment is great. But be wary and beware of calls that don’t sound like the trusted companies you know.

Robocalls are an unfortunate reality that many people have to deal with on a regular basis. While it may seem difficult to stop them altogether, there are steps you can take to protect yourself and avoid becoming a victim of a robocall scam.

Post updated. Originally published December 2013.

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Whenever you’re checking your bank account online or paying bills, you need to be extremely careful with the websites you visit and the links you click. Recklessness online may cause you to inadvertently install malicious computer software known as ransomware.

What Is Ransomware?

Ransomware is a type of software (or malware) that is specifically designed to disrupt or gain unauthorized access to your computer. It prevents you from using your computer until you pay a ransom.

There are various types of ransomware, all of which prevent your computer from functioning. Ransomware can:

• Lock you out of your entire computer,
• Prevent applications or programs from opening, and
• Encrypt files to restrict access.

In almost every case, attackers will demand payment. Once they receive the ransom, they’re supposed to restore function to your computer. If you fail to pay within a period, the attackers may demand more money.

Ransomware is widespread, and personal users and business owners must be cautious. You must be alert and protect yourself and your computers at all times.

Your personal and work computers need to be protected at all times.

Protecting Yourself At Home

Ransomware creators usually target average home users because they don’t  have the knowledge or expertise to properly protect themselves.

Luckily, you can defend yourself by following some best practices. First, let’s go over proper habits while browsing the internet:

• Avoid clicking suspicious links in emails or on social media.
• Don’t open unknown email attachments.
• Only download files from trusted sources.

You must also realize that your personal computer can be targeted at any time. Protect yourself by ensuring you have anti-virus with active monitoring installed on your computer. If you want to go one step further, install anti-malware and anti-ransomware programs.

Next, back up your data. If ransomware encrypts your files, you’ll be able to recover quickly and avoid paying a ransom. Create several backups of your files on an external hard drive or a secure cloud service. Make these backups regularly, and don’t leave them plugged into your computer. External devices are also at risk of becoming infected.

Protecting Your Business

Microsoft recently reported that the number of ransomware attacks on businesses is increasing. Attackers target businesses because companies are more likely to pay a ransom when their operations are disrupted.

Protecting your business involves more than safeguarding your personal computer with the best practices outlined above.

First, create a cybersecurity plan that outlines best practices, security tools, and your response to ransomware attacks. Remember, you not only have to account for computers but also servers and mobile devices. Anything that’s connected to the internet can become an access point to sensitive business files.

Your cybersecurity plan needs to include employee training. If your workers aren’t careful while checking email or processing orders, they can unknowingly expose computers to ransomware.

The response portion of your plan should detail the actions you’ll take following the discovery of ransomware. These can include contacting the authorities and restoring files from backups.

Finally, stay up-to-date about the latest ransomware attacks. According to Microsoft, there are many types of ransomware out in the wild. Understanding the warning signs and how these dangerous programs operate is vital to your future protection.

Get Cyber insurance

Whether you’re a homeowner or small-business owner, you may be interested in obtaining cyber insurance. Policies offered by Fortress Union Bank Insurance can help protect you from ransomware and other online threats and will provide peace of mind. You aren’t invincible online, so you must take precautions and protect yourself before your personal life or finances become compromised.

The internet, for all its benefits, also comes with threats like ransomware. If you aren’t careful, your personal and business computers and files may be held hostage. But if you follow best practices at home and in your business, you can help protect yourself.

Request a quote

Post updated. Originally published January 2017

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Use Wi-Fi At Home

One of the perks of shopping online is staying in the comforts of your own home. But if you decide to search for gifts at a coffee shop or the airport, be wary that a fraudster could be watching.

A Man In The Middle Attack occurs when people use public or insecure Wi-Fi networks. Hackers can position themselves in the middle of your connection and watch your activity without you knowing. If you enter your address, social security number, or card number, they can clock it and compromise it.

The best way to protect your personal information is to shop on secure Wi-Fi you trust.

Protect Your Passwords

Hackers are getting smarter about decoding passwords at an alarming rate. That’s why you should regularly update passwords and enable two-factor authentication on your accounts.

But coming up with passwords can be overwhelming when you have to keep up with the rules. Should you use a variety of old passwords? How many characters should it be?

Here’s the most important rule: do not use the same password for multiple sites. If one password gets compromised, all your accounts get compromised. So, how do you keep track of your passwords securely? Avoid writing your passwords down in a notebook or a piece of paper. If you lose that sheet, you lose all your passwords.

Instead, use password managers built into your computer and browser. Password managers will remember information for all of your accounts and can also generate unique, secure passwords.

Shop On Sites You Know

It can be tempting to click on social media ads that promise low prices or search for sites with unique gifts. But remember: anyone can pay for an ad or put up a website. Shopping big-name stores online is the best way to secure your financial information. You’ll also find better deals that will deliver the perfect gift you’re looking for.

Check that the sites you’re shopping on are safe by looking for secure website indicators, like “HTTPS” in the URL or the padlock icon next to the URL, before making a purchase.

It’s also an excellent time of year to support local businesses if you’re looking for a unique present you can’t find at a big-box store. Ultimately, you should trust names you know when you’re rushing through your holiday shopping.

Utilize Digital Wallets

Your transactions have several layers of security protection – your bank, the retailer, and your card company. Still, you should never save your card information on a website. And, as we’ve discussed, there are still risks with entering your card information directly at check-out.

The solution? Digital wallets add an extra layer of protection for your transactions. Digital wallets encode your card information, so your information won’t be compromised if a store gets hacked. Digital wallets like Apple Pay®, Samsung Pay or Google Pay are options that help secure your financial information. They can also expedite your online shopping while keeping your information safe or in-person shopping by tapping your phone or smartwatch when you check out.

Plus, Quick Bonus Tips

• Remember to monitor your accounts regularly for suspicious transactions. You can enable transaction notifications/alerts to keep track of this quickly.
• You should also keep your app, phone, and computer software up-to-date for the latest security measures.
• Be cautious about clicking on links or providing personal information in emails, especially those claiming to be from banks or online retailers. They could be phishing scams. Legitimate organizations typically won’t request sensitive information via email.

New scams are popping up every day, and we want you to be in the know. Listen to Dream, Plan, Live: the Fortress Union Bank podcast for more tips to protect yourself from fraud with the experts Fortress Union Bank.

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According to CNBC, nearly one in three Americans say they’ve been a victim of a phone scam in the past year, and that’s only one type of fraud that people use to trick others. The act of misrepresenting the truth or concealing facts to cheat a person of their money or property is illegal, and there are many ways that people can fall victim to scams. Keep reading to learn more about common types of fraud and how you can protect yourself, your family and your sensitive information.

Common types of fraud

When you hear the word “fraud” you may think of a specific form of scam that you’re familiar with. Sadly, there are several types of fraudulent activities that happen through a variety of mediums. Here are some of the most common kinds of deception that people may use to swindle you out of your personal information or money:

Mail fraud

Mail fraud is very self-explanatory: Any scam that involves the use of postage mail. Although this may seem harmless, it’s widespread and can actually be one of the most serious types of fraud. Scammers may send a letter asking for money or personal data because printed and mailed documents seem more legitimate. This type of fraud also includes stealing someone else’s mail or using chain letters to collect money or items.

Tax scams

IRS scams generally come in the form of phone calls or emails that claim to come from the IRS. People will use threats of tax bills, audits or the promise of potential refunds to trick people into giving up personal information over the phone or through email.

Business fraud

Business fraud can be a crime committed within a company, or it can describe attacks against the business itself. The various types of business scams include:

• Payroll fraud: This financial crime occurs when someone steals money from an organization by appearing to pay someone for their labor, but pocketing the money instead.
• Financial statement fraud: When a business manipulates its financial records to make its assets seem like they are actually worth more (or sometimes less), it’s considered a financial statement scam.
• Asset misappropriation: This most common type of employee fraud happens when a worker blatantly steals money or assets from the company they work for.
• Identity theft: A company can either be the victim or the fraudster in this type of business scam. A business might steal bank information or other sensitive information from its customers, or an organization could be attacked through data fraud.

Phone and internet scams

Fraud doesn’t stop with the mail — it also reaches people through phone calls and internet usage. Although people can fall for scams at any age, it’s more common for older adults to be targeted by fraudsters, according to Comparitech. Some of these common scams include:

• Grandparent scam: Since older people are often more trusting of fraudulent attempts, swindlers will pretend to be the grandchild of the person on the receiving end of the call.
• Tech support: For older adults that only have a limited understanding of technology, scammers may pretend to be IT professionals and convince the person that they have a virus and need to pay for a new program or give remote access to their computer.
• Software scam: This fraud type looks like a warning message that appears on a computer or phone and will attempt to have you click on it. If you activate the notification, it can install malicious software that can steal your personal information.
• Lottery and sweepstakes scams: Although it can be exciting to win a sweepstakes prize, if you’re not sure about the legitimacy of the claim then it’s best to avoid interacting with the message. Scammers will often ask for money to cover processing fees or taxes.
• Robocalls: You may feel unbothered by pre-recorded robocalls, but they can still be dangerous. Generally, scammers will use this method of fraud to ask for donations or financial help.
• Investment scams: Investment scams are deceptive schemes that trick individuals into investing money with promises of high returns.  These offers often start with unsolicited social media messages prompting you to send cryptocurrency.

Ransomware

Ransomware is a type of software or malware that disrupts or gives unauthorized access to your computer. Generally, attackers will steal personal information and credit card or debit card data and demand payment to unlock your computer. For businesses especially, hackers can threaten to leak or sell their data for non-payment. According to CloudAlly, the average ransom paid by organizations in 2022 is $812,360.

Fraud detection

With the many possible sorts of fraud, it may seem impossible to avoid becoming a victim of scammers. But, there are ways to recognize when you or your loved ones are being tricked.

Detecting mail fraud

Mail fraud is vast, but typically you should watch for any delivered packages or documents that seem fishy. To avoid falling for mail fraud, make sure a piece of postage is real before responding to it. Do this by verifying any phone numbers or emails on the note. Even if the document looks legitimate, it’s better to be safe than sorry. Another way to protect yourself is to bring any outgoing mail with your bank account number or your social security number attached directly to the post office.

Detecting tax, phone or internet scams

Typically, fraudsters using aliases such as those claiming to be representatives of the IRS will request things that should send off warning signals. Here are some red flags that may indicate that you’re being scammed:

• They ask for immediate action: Scammers want to make you feel scared, so they may demand that you pay them on the spot or threaten negative consequences. You should always have an opportunity to question or appeal the amount they say you owe, and if you’re not being given that opportunity, the person is most likely not who they say they are.
• They require odd payment methods: If you’re being asked to pay a fee using a prepaid debit card, gift card or wire transfer, don’t give them any information. The IRS will never require you to pay tax-related charges in any of these ways.
• They call you unexpectedly: When the IRS contacts taxpayers, they generally do so by mail before contacting people over the phone. If you haven’t received any postage from them, it’s safe to assume that you’re being scammed.

If you feel uncomfortable or weird about a phone and internet interaction, it’s probably a sign that this suspicious activity isn’t right. In those moments, it’s important to trust your gut and take extra precautions to keep yourself safe.

Fraud prevention

You don’t have to wait to get scammed to worry about preventative measures. Implement safe practices now so you can rest assured that your information will remain secure. Your bank uses fraud prevention methods like positive pay and unauthorized transaction detection to keep you safe, but there are also measures you can take further protect yourself.

Use password protection

With your phone, computer, online bank account and any other mobile or online device, use a password to lock out fraudsters. Create a strong password that hackers will not be able to easily figure out or find on social media. A password manager such as Dashlane or LastPass can provide highly secure passwords that you won’t need to remember. (Fortress Union Bank does not endorse 3rd party software solutions.)

Allow push alerts on your mobile banking app

Your bank will be able to quickly let you know if any transactions look suspicious and notify you immediately. This may even allow you to stop scammers after they access your account.

Keep your devices updated

Allow all of your devices and applications to update as new versions are available. Generally, upgraded operating systems come with even better security measures in place.

Watch what you click on

If a message or email looks fishy, don’t click on it. It’s best to delete it and let your bank or carrier know about the potential threat to your information.

Avoid using public computers and unsecured wifi

If you’re considering logging into any of your accounts that may contain any sensitive information on a public computer, don’t. If not removed properly, the next person that uses that device could easily access your data or steal your passwords. Only use secure, familiar devices when accessing any personal details.

You may believe that you’ll never be a victim of online fraud or other scams, but it’s always better to be extra prepared for potential fraud than to have your information or money stolen from you. If you have been hacked or scammed, it’s not too late to get help.

Steps to take when you’re a victim of fraud

No matter what form of fraud you believe you may be a victim of, immediate action is needed to protect yourself and your finances and prevent further damage from happening. If your bank information has been compromised, you should contact your financial institution and have them help you recover your data. For other scams including phone calls, emails, tax scams or business fraud, start by contacting the Federal Trade Commission (FTC) to report the incident or call the agency at 877.382.4357.

After contacting all necessary entities, follow these steps:

• Stop all contact with the scammer.
• Reset your passwords and usernames.
• Update your anti-virus software.
• Have an IT professional look at your computer to ensure no malware has been downloaded to your device.

The most important item to remember is that you don’t have to be alone if you’ve been tricked by a scammer or compromised by fraudulent activity. With modern updates in secure banking technology, you can feel comfortable knowing that you have the entire Fortress Union Bank team by your side.

If you’re interested in a safer mobile and online banking experience, contact us today to set up an account or speak to one of our staff members.

Post updated. Originally published January 2023.

The post Fraud prevention: How to protect yourself from scams appeared first on Fortress Union Bank.

Scams can take endless forms, but intimidation scams are the most threatening and familiar. You can probably think of a few: tax scams, imposter scams, and locking you out of your information, to name a few.

But when we break down how scare tactics work, it can be easier to spot them and stop them. Here are three ways con artists use scare tactics of scams and how you can stop them.

1. Targeting your personal information

Scammers are targeting your money and information, like your bank account or social security number, because they want to steal from you and people in your network. But asking you to give up this information is also an effective way to make you feel more vulnerable.

One common intimidation scam, for example, is phony debt collection. Here’s how it works: a person gets a call from someone saying they are a debt collector and that this person has an outstanding debt. If they don’t pay back the money in 24 hours, the police will arrest them.

Victims of this scam feel intimidated because they’re caught off guard and vulnerable. That’s why you must have an in-depth knowledge of your financial situation and debts if you have them. In scenarios like this, it’s also best to block the number that calls you.

2. Invading your privacy

Scammers frequently contact victims by texting or calling them. But social media is more commonly used for scams because con artists can quickly and easily reach millions.

Sometimes this means cat-fishing a target, meaning they pretend to be someone they are not online. It can also mean duplicating your profile or hacking into your account. This is effective because, again, con artists feel close to you, so you feel vulnerable.

Follow these tips to ensure that your online bank accounts (and any other online account) are safe. If you ever receive a message that seems phishy, call or text the person directly, ensure they are okay, and warn them about their hacked account.

3. Thriving on fear

Fear is a powerful scam tactic because it creates confusion. But in those moments, it’s essential to stay calm.

Stay informed about common scams with the IRS Tax Scam and Consumer Alert Page. Don’t be afraid to end a call or block a number or profile if something doesn’t seem right about a conversation. And remember, your bank is always there to give you peace of mind.

Stay informed and learn more about specific scare tactics. Listen to our Dream, Plan, Live episode – Fraud Noir: Scare Tactics.

The post How con artists use scare tactics for scams (and how you can stop them) appeared first on Fortress Union Bank.

Business fraud is a broad term. It can refer to crimes committed by high-ranking employees in a business, or it can describe attacks committed against the businesses themselves. At the end of the day, business fraud almost always involves someone stealing money from someone else under the guise of business dealings.

In either case, it’s a serious issue. That’s why it’s crucial to be alert to the types of fraud in business today.

Different types of fraud in business

1.   Payroll fraud

Payroll fraud occurs when someone exploits your company’s payroll system to steal money while appearing to pay someone for their labor. An employee who has access to the payroll system will have the easiest time committing this type of fraud. But it can also be committed by anyone inside or outside the company with extensive hacking skills.

Someone can commit payroll fraud by:

• Submitting false timesheets to pay themselves or someone else more than they earned.
• Issuing unauthorized bonuses.
• Sending money to a fake employee or ex-staff member.

You and your employees are the first line of defense against corporate account frauds. Advanced cybersecurity measures paired with employee education about the warning signs, safe practices, and responses to suspected fraud are essential to protecting your company and customers.

2.   Financial statement fraud

An employee or business owner may commit financial statement fraud for a variety of reasons. Most commonly, the fraudster will manipulate financial records to make their assets, income, or total net worth seem greater. They will also paint their debts, liabilities, and losses as more minute. This type of fraud is typically committed to secure loans or avoid consequences for not reaching financial goals. Other times, the worker seeks loans so they can steal the money for themselves.

In any case, this type of business fraud is a serious financial crime. Pay attention to suspicious activity and react quickly. Look out for unexplained account or network activity, pop-ups, and suspicious emails. If detected, immediately contact your financial institution, stop all online activity and remove any systems that may have been compromised. Keep records of what happened.

3.   Asset misappropriation

Asset misappropriation is the most common type of employee fraud, and it’s often the easiest to commit. Let’s be clear: misappropriating assets means deliberately stealing from an employer.

There are two categories:

• Cash misappropriation: Stealing money directly from the company, whether it is transferring funds from company bank accounts, making unauthorized purchases on a company card or taking cash right from the safe.
• Non-cash misappropriation: Stealing non-cash assets from the company. This could be in the form of taking office equipment, supplies or inventory without being authorized.

The best way to prevent asset misappropriation is to keep detailed inventory and financial records and prove any losses. Partner with your bank to prevent unauthorized transactions. With our business checking accounts at Fortress Union Bank, you can stay on top of your finances.

Also, talk to your banker about programs that safeguard you from unauthorized transactions. Positive Pay and other services offer device authentication, multi-person approval processes, and batch limits to help protect you from fraud. Also, follow these four tips for protecting your cash management systems.

4.   Tax fraud

The more revenue a company earns, the more it will have to pay in income taxes. Tax fraud occurs when a business avoids high tax rates because they are in a higher tax bracket. Business owners will sometimes strive to pay less in taxes by downplaying their business’s earnings or claiming false deductions by lying on their tax returns or submitting a falsified return. Additionally, tax evasion is when businesses or individuals avoid paying taxes altogether. This is also considered a type of tax fraud.

As a business owner, it’s essential to understand your responsibilities and liabilities of reporting on your annual earnings and hold employees and contractors responsible for following federal law.

5.   Identity theft

Identity theft is a complex form of business fraud because a business can be either the perpetrator or the victim.

Identity theft is when someone steals personal information from another person and uses their information to steal from them. Fraudsters could open a new line of credit with their social security number, make purchases with their credit card number, commit crimes under a false identity, and much more.

A business can commit identity theft by stealing bank account information or other personal data from its customers. At the same time, businesses can be attacked through data fraud. Employees with sensitive information might use that data to steal from a business or commit other crimes. Another company might also steal this information through a business-to-business transaction.

It is important to protect your cyber environment just as you would your cash and physical location. Do not use unprotected internet connections. Encrypt sensitive data and keep updated virus protections on your computer. Use complex passwords and change them periodically.

6.   Corruption

Corruption is a blanket term for many different types of business fraud. Essentially, when a person in power at a business deliberately mishandles funds or engages in any kind of dishonest behavior, it is considered corruption.

Some examples of corruption are:

• Money laundering.
• Manipulating public elections.
• Accepting bribes.
• Making unreported transactions.
• Conducting business dealings with criminals.

Business owners might become corrupt if they seek to make as much money as possible with little regard for morality or justice. It’s rare, but sadly, it happens. That’s why employees of a business must be alert and observant. It’s also essential that suspicious businesses are reported to and investigated by the IRS or the FBI.

Protecting your company from fraud

Corporate fraud is a serious matter. Whether the business is the victim, or a company leader is the one committing crimes, it’s important for everyone involved in an organization to be on the lookout.

The best way to protect your business from fraud and corruption is to understand the risks and put preventative measures in place. Regularly reviewing financial records is one important step, and often updating technology and software is also essential.

It’s important that you hire trustworthy employees as another method of fraud prevention. Run background checks on everyone you hire, and only disclose sensitive information to workers who need it to perform their jobs.

Your Fortress Union Bank business account comes with fraud monitoring tools that can help reduce your worry about security breaches or asset misappropriation. From security and positive pay alerts to employee permissions and access controls, services are available to help stay on top of your finances and catch fraud before it hurts your business.

Want to learn more about how Fortress Union Bank keeps your financial accounts safe? We would love to help answer your questions.

Post updated. Originally published September 2021.

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Here are three red flags you should look out for to avoid online fraud.

1. Someone you don’t know asks you to send money.

There are many ways fraudsters could compromise your accounts if you send money digitally, especially if your online transaction isn’t secure. That’s why it’s a good rule to avoid sending money to any person you don’t personally know.

If you’re shopping on user-to-user selling websites, like Craigslist or Facebook Marketplace, do not send money to any users without seeing the product or meeting the person. Paying with cash is one of the safest options for making these purchases. If you are not using cash, keep all of your mobile payments apps up-to-date with the latest software, and use digital transaction platforms with insurance policies in case of fraud, like PayPal.

2. Someone asks you for access to your personal information.

It may seem like a no-brainer, but it’s important to remember that you should never give any access to your personal information, like your bank account number or social security number. Fraudsters make it difficult because they will often pose as an authority group, like the IRS or a software company.

But in our increasingly digital world, it’s essential to understand how the IRS or a software company would contact you. Remember: keep your personal information as safe as you would keep a key to your house or your car.

3. Someone offers you something expensive or valuable.

If an offer online seems too good to be true, it’s more likely a scam. These scams can appear in so many different ways, like cheap concert tickets to see a popular artist or pay-to-win lottery schemes. Use your common sense when you’re scrolling online, and always air on the safe side.

If you encounter something online that appears to be a scam, you should also report it to the platform you’re using or the IRS to avoid other people falling for it.

Ready to test your knowledge of spotting internet scams? Listen to the new series from the Dream, Plan, Live podcast, Fraud Noir, and see if you can spot the red flags in these online stories with Fortress Union Bank’s Fraud Analyst, Stacie Wolter.

The post 3 red flags to look for internet fraudsters (lottery scams, Facebook Market, and more) appeared first on Fortress Union Bank.

New variations of tax scams appear every year, so it’s important to be alert and follow tax scam tips provided directly by the IRS.

What is a tax scam?

IRS scams are typically phone calls or emails that claim to come from the IRS. Fraudsters use fake refunds, threats of a tax bill, or audits to pressure victims as a lure to give up personal and financial information. Phishing scammers use this personal data to steal the victim’s money or identity.

Telltale signs of a scam

First, it’s critical to know what the IRS would not do if they contacted you. The IRS (and its authorized private collection agencies) will never:

• Email you without mailing an official notice first.
• Demand that you immediately pay your taxes over the phone.
• Threaten to immediately bring in local police or other law-enforcement groups to have the taxpayer arrested for not paying.
• Claim to be able to suspend or cancel your Social Security Number.
• Demand that taxes be paid without giving the taxpayer the opportunity to question or appeal the amount owed.
• Ask for credit or debit card numbers over the phone.
• Email to demand immediate payment using a specific payment method such as a prepaid debit card, gift card or wire transfer.
• Use text messages or social media to discuss personal tax issues, such as those involving bills or refunds.

Tax scam tips

If a phishing scammer contacts you, the IRS offers the following tips to keep you safe:

• Fraudsters may know a lot about you when they call and may be able to spoof your caller ID to show that they are calling from an official number. Don’t be fooled.
• If you don’t answer the phone, they may leave an urgent callback request. Email the IRS hotline at 800.829.1040. Do not call the number left in the message.
• If you receive a call that you think might be from the IRS, take down the agent’s information and call them back using the official IRS phone: 800.829.1040.

Scams to watch out for this year

The IRS reports common scams on their website, so check the Tax Scams/Consumer Alerts page for the most up-to-date information.

For any questions about owing money to the IRS, contact a qualified tax expert or call the IRS directly using their official hotline:

IRS Hotline
800.829.1040

If you believe that you (or someone you know) have been the recipient of tax-related phishing or phone scams, you’re encouraged to report the incident to the IRS. Learn more.

Additional information about fraud and identity theft is also available from the Federal Trade Commission.

Want to learn more about catching phone and internet scams? Check out our tips from the Fortress Union Bank blog.

If you receive a questionable call and are unsure what to do, please reach out to us.

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