Tuesday Topic: Preventing Fraud and Mitigating its Damage

It's a constant, never-ending battle.  We aren't paranoid.  They ARE out to get us.  In our tiny little bank, we saw a lot of fraud in the unemployment benefits programs during Covid. When we tried to let the banks or unemployment departments know about it, we couldn't get through to the right person.   We reported a tax fraud scheme through SARS reports prior to COVID but, for instance, $200,000 in tax fraud wasn't enough to investigate. There is so much fraud that there isn't enough manpower to track it down - by far.  It thrives due to no punishment.  Vigilance is a must, and it's never enough.  Many times our bank is left holding the bag because the customer is judgment-proof.

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Mary Fowler
Chief Executive Officer
The Peoples Bank
Magnolia, AR
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Original Message:
Sent: 07-18-2022 12:33
From: Rob Blackwell
Subject: Tuesday Topic: Preventing Fraud and Mitigating its Damage

Americans lost more than $5.8 billion to fraud schemes in 2021, a 70% increase over 2020, according to data from the Federal Trade Commission. The true amount is likely much higher, considering that many schemes go unreported and only half of U.S. states contribute to the FTC's tracking efforts. Daniel Cardi, Associate Vice President and Corporate Security Officer for East Syracuse-based Community Bank, attributes the rise in incidents to the prevalence of digital banking platforms, which are vulnerable to phishing attacks and other complex scams, and instant money transfers, which are prone to impersonator scams.

To prevent fraud and protect customers, community banks should remain vigilant, says Rebecca Kruse, Executive Vice President and Chief Operating Officer for ICBA Bancard. Her suggestions include being able to shut merchants down quickly, continuously monitoring card networks, and when an incident does occur, identifying other cards that may be at risk.

How does your bank handle fraudulent transactions? Any additional suggestions for the group?

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Rob Blackwell
Chief Content Officer and Head of External Affairs
IntraFi
Arlington, VA
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