Here's a story about how Kennebec Savings Bank recently helped one of its customers avoid a scam. We hope sharing this will help you stay vigilant and avoid similar traps.
The Scam Unfolds
Recently, a customer at Kennebec Savings Bank came in to withdraw money to build a new deck. Knowing the customer lived in a condo, the account manager started asking questions and eventually escalated the situation to the branch manager. The customer then revealed his phone, and the branch manager saw that a fraudster was listening in on their conversation. This quick thinking helped prevent the scam.
Real-Life Examples of Scams
This wasn’t an isolated case. One customer tried to withdraw funds to marry someone he believed to be Jennifer Aniston, and another wanted to wire money to pay taxes on supposed Irish lottery winnings.
Kennebec Savings Bank, a Maine-based mutual with $1.7 billion in assets and 78,000 accounts, saw fraud cases triple between 2021 and 2023. In 2023 alone, they experienced 264 cases of fraud but prevented over $430,000 in losses.
The Rise of Imposter Scams
According to the Federal Trade Commission (FTC), imposter scams accounted for nearly $2.7 billion of the more than $10 billion lost to fraud in 2023. Social engineering, where scammers manipulate victims into revealing personal information or performing actions for illegitimate reasons, has become a significant issue.
Growing Sophistication of Scams
Today's identity scams are not just targeting the hapless; even seasoned professionals are falling victim. Scammers use advanced techniques like social engineering and deepfake technology to deceive people. For instance, a New York Magazine columnist was scammed out of $50,000 by someone impersonating a CIA agent. Another incident involved a finance worker in Hong Kong who lost $25.6 million to a scammer using deepfake technology.
How Technology is Fighting Back
While scammers use technology to their advantage, new technologies are also being developed to combat these threats. Companies like iProov use facial biometrics to ensure that a real person is present rather than a manipulated image. Sardine, another tech firm, detects behavioral differences to flag suspicious transactions.
Enlisting Government Help
Paul Benda of the American Bankers Association (ABA) has called for more government action to combat illegal text messages and spoofed calls. He suggests that social media companies should quickly take down impersonation accounts and that telecommunications providers should be held accountable for allowing scammers to spoof legitimate numbers.
Educating Customers
Education is crucial in the fight against fraud. Kennebec’s President and CEO Andrew Silsby publishes a monthly newsletter to educate customers and employees about recognizing and preventing scams. Celebrating quick thinking by front-line employees helps teach others about the latest fraud tactics.
Tips to Protect Yourself
- Know Your Customer: Be aware of unusual behavior and verify any requests that seem out of character.
- Distrust All Incoming Calls: Unless you initiated the call, be skeptical. If you receive a suspicious call, hang up and contact the institution directly using a verified number.
- Never Wire Money: Wire transfers are risky and often used in scams. Always explore safer alternatives.
- Report Suspicious Activity: If you suspect a scam, report it immediately to your financial institution and law enforcement.
Conclusion
Scams are becoming increasingly sophisticated, but by staying vigilant and informed, we can protect ourselves and our loved ones. Remember, if something seems too good to be true, it probably is. Always verify and take the necessary steps to safeguard your personal information
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