How Fraudsters Use Current Events to Carry-Out Scams

Where there are current events, there are scammers scheming over ways to target new victims.  While you may be thinking, ‘wait a minute, current events are always occurring, so wouldn’t that mean fraudsters are always scheming to steal our sensitive information?’

Yes, scammers and fraudsters are continuously trying to find ways to fool even the most unsuspecting individuals to gain access to their information and adapting their techniques to avoid suspicion.

By capitalizing on the confusion and urgency surrounding such events, scammers use various tactics in an attempt to steal sensitive financial and personal information, including account numbers, Social Security numbers, and passwords.

Events such as bank closures, mergers, or even temporary disruptions create a fertile ground for scammers to prey on unsuspecting individuals.

Here's how these scammers operate and how you can protect yourself.

A Real-Life Example:

A recently announced merger of two banks in our area is currently being used for this type of fraudulent scam. Reports indicate that many of the bank’s customers, as well as non-customers, are receiving suspicious text messages purporting to be from the bank, warning them of charges made to their accounts.

These messages contain a link that can lead to serious security breaches.

The Basics:

How Scammers Exploit Bank Closures

When a bank announces its closure or merger, customers often face questions about where their funds will go, how their accounts will be managed, and whether additional action is needed. Scammers seize this opportunity to impersonate banks, regulators, or legitimate service providers. Here’s how they typically operate:

1. Phishing Emails and Texts

Fraudsters and scammers send emails or text messages claiming to be from the closing bank or a government agency. These messages often:

• Urge immediate action, such as "verifying" your account.
• Include fake links leading to websites that mimic official pages.
• Ask for sensitive information like passwords or account numbers.
  

2. Phone Scams

Scammers may call, pretending to be bank representatives. They might:

• Claim your account is at risk of being frozen.
• Request verification of your Social Security number, PIN, or account details.
• Pressure you with urgency or threats of financial loss.

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3. Fake Websites

Sophisticated fraudsters create counterfeit websites that look like the official bank site. These may appear in search results, but commonly appear via links shared in phishing communications, tricking users into entering their login details.

In the example above, customers who had received the fraudulent message may have clicked the link to login and check their account activity in order to view the charges that were said to have been issued. In doing so, they would actually send their credentials to scammers without realizing their error since the website looked almost identical to the bank’s website.

From here, the scammers can use or sell account information, resulting in stolen funds, identities, and creating a detrimental impact on victims’ financial well-being.

4. Physical Scams

Some fraudsters go as far as mailing fake letters or notices. These documents might include instructions to send personal information by mail or to call a fraudulent hotline.

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Who is at Risk?

While anyone can be a target, fraudsters often focus on:

• Elderly individuals who may not be familiar with digital security practices.
• People who are less tech-savvy or financially inexperienced.
• Customers who lack knowledge about how banks communicate with clients during closures.
• People impacted by a current event, lowering their guard.

How to Protect Yourself

3. Inspect Links and Emails

• Hover over links to check where they lead before clicking. Many scammers create websites that look identical to the bank’s site but will have inconsistencies in the URL (website address).
• Look for typos or inconsistencies in email addresses and websites.
• Better yet, create bookmarks in your web browser for sites that you regularly visit such as financial sites or online retailers, and use those to navigate to the websites.  That way you know you are going to the correct destination.
  

4. Don't Share Personal Information

Never share sensitive details over phone, email, or text unless you have initiated the contact with a verified entity. If you do accidentally share your information, contact your bank immediately.

5. Enable Account Alerts

Sign up for account activity notifications from your bank. This ensures you’re immediately informed of unauthorized transactions.

6. Report Suspicious Activity

If you suspect fraud, report it to your bank immediately. Additionally, you can also report attempted fraud and scams to local law enforcement in an effort to help protect others.

What to Do if You’re a Victim

If you’ve fallen for a scam:

• Contact your bank to secure your account and report unauthorized transactions.
• File a complaint with the FTC at www.reportfraud.ftc.gov.
• Monitor your credit report for unusual activity through My Credit Score in your Shore United Bank Mobile App.
• Place a freeze on your credit file with each of the credit bureaus (Experian, Transunion, and Equifax).  This will prevent scammers from opening new accounts in your name.

Fraudsters are opportunistic, and bank closures provide the perfect cover for their schemes. By staying vigilant and educating yourself on common tactics, you can protect your financial and personal information from falling into the wrong hands. When in doubt, remember that legitimate organizations will never pressure you into sharing sensitive information.

Stay informed, stay alert, and safeguard your finances from the growing threat of fraud.

For more in-depth information on how to protect yourself from fraud and scams, check out these security tips:

SECURITY TIPS