SMBT Hosts Fraud Awareness and Prevention Roundtable for Local Business Leaders

On October 22nd, SMBT gathered business owners and managers for a crucial Fraud Awareness and Prevention Roundtable at Firm Foundations. This event brought together a panel of experts, including Risk Management specialists, IT professionals, and local, county, and state law enforcement officials, to address the pressing issue of fraud in today’s business environment.

Participants engaged in discussions about the potentially devastating impact of fraud on businesses, emphasizing the importance of staying informed about current fraud trends. The roundtable offered practical advice on how to recognize and prevent fraudulent activity, empowering attendees with the tools necessary to safeguard their organizations.

We’re grateful for the opportunity to collaborate with law enforcement and industry experts to educate our local business community about fraud prevention strategies. By sharing knowledge and resources, we can work together to mitigate the risks associated with fraud.

Our team recently spoke with business owners to provide key tips on protecting their mail, finances, and loved ones from common scams and fraud. Here's a summary of the advice shared:

1. Focus on Mail Theft Prevention:

   • Why is mail stolen? It's an easy target for identity theft. Criminals can steal sensitive information from checks, personal details, or financial records.
   • Stolen checks are often washed or re-created, making them a prime target for fraudsters. Once stolen, your bank information can be sold on the dark web.
   • Don’t drop mail after the last pick-up: Late-night or after-hours drop-offs make mail vulnerable to theft.
   • Be aware of organized crime: Some groups have stolen the keys (Arrow Key) to Blue Postal Boxes, or they may even steal the box entirely.
   • Set up Informed Delivery: This USPS service allows you to track the mail arriving at your address, helping to catch any discrepancies or theft early.
   • Avoid putting outgoing mail in your mailbox with the "Steal My Mail" flag up: This is a clear signal to criminals that there’s mail inside worth stealing.

2. Prevent Account Payable Fraud:

   • Be cautious of emails requesting payment changes: Criminals often send fake emails pretending to be your vendors, asking for changes in payment details.
   • If the AP department makes the change, the fraudsters receive the funds.
   • You’ll often discover the fraud when you get a past due notice, and the payment has already been redirected.
   • Set up procedures to verify any changes in payment orders. Always confirm with the vendor through a known and secure communication channel (e.g., phone call, direct email).

3. Romance and Grandparent Scams:

   • $3.8 billion in losses were reported last year from romance scams alone.
   • The typical victim is a 60 to 75-year-old who is divorced or widowed, often feeling lonely and seeking companionship.
   • Scammers target these individuals through online dating sites, where they create a convincing persona and foster a trusting relationship with the victim.
   • Fraudsters may promise to visit the victim or even move to their area, and over time, they convince the victim to send money to help with legal or immigration issues related to their supposed visit.
   • Please talk to your loved ones about these types of scams. It’s important to stay vigilant and recognize signs that someone may be falling prey to these tactics. Early intervention can prevent significant emotional and financial harm.

4. FDIC Insurance and Fraud Protection:

   • FDIC Insurance protects your deposits in the event of a bank failure. This provides a safety net if the financial institution where you hold your funds collapses.
   • However, FDIC insurance does not protect your account from fraud. It only covers the loss of funds in the event of a bank failure, not fraudulent activity such as unauthorized transactions.
   • To reduce your business's risk of fraud exposure, consider obtaining additional insurance designed to protect against fraud-related losses. Business owners should consult with insurance providers to understand the types of coverage available to mitigate risks from fraud, including cybercrime and financial theft.

By taking these steps, businesses and individuals can better protect themselves from identity theft, fraud, scams, and financial loss. We encourage you to stay vigilant, set up preventive measures, and discuss these threats with your team and loved ones. Protecting your assets, reputation, and personal security requires ongoing attention and action.

The event underscored the commitment of SMBT to support local businesses in navigating these challenges. Attendees left with valuable insights on fraud detection strategies and a strengthened resolve to protect their operations from fraudulent activities.

For more information on fraud prevention resources, local businesses are encouraged to reach out to SMBT and their community partners. Together, we can create a safer business environment for all.

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