The rise in fraud has become one of the biggest concerns for community banks and their customers in recent years. Fraud has a serious bottom-line impact on banks, and it hits customers in a very personal way, all of which goes against the ethos of community banking. 

Fortunately, community banks know their customers exceptionally well and are therefore uniquely positioned to help prevent and detect fraud on the front lines.

At ICBA, we understand the gravity of frauds and scams and their impact on customers. In this new column, we’ll be looking at ways to make this fight easier. We’ll be tackling issues including:

  • Debit card fraud

  • ATM fraud

  • Impersonation scams

  • AI-assisted fraud and scams

  • Cryptocurrency scams

  • Phishing, smishing and vishing (cyberattacks using social engineering, SMS messages and voice calls respectively)

We'll be giving you critically important, new information and resources, so that you can build protection for your customers and promote resilience within your communities.

Check fraud

This year, ICBA has addressed check fraud in some depth, and if you’ve missed our reports, you can visit our website at icba.org for some valuable resources. Start by downloading our guides: 

  • Check Fraud: A Practical Guide to Altered, Forged, and Counterfeit Checks for Community Bankers

  • Check Fraud: Detection Mechanisms

  • Check Fraud: Engagement with Federal Bank Regulators

Other resources you can reference when building a check fraud strategy include:

  • The fraud subgroup on ICBA Community

  • Episode 25 of the Independent Banker podcast: "Why is Check Fraud Such a Problem Right Now?"

  • Lance Noggle's article on check fraud mitigation tips in the June 2024 issue of this magazine

  • The recording of ICBA's ThinkTECH Solutions Forum on fraud

Romance scams

It’s February, so use Valentine’s Day as an opportunity to educate your tellers and customers about the signs of romance scams. Romance scammers are adept at using information on dating websites or social media against their victims. 

Remember these red flags: 

  • Scammers will tell their victims they can't meet them in person.

  • They will ask their victims for money to cover medical bills or even flights to visit them.

  • They will ask them to pay in ways that are hard to reverse, such as gift cards.

As a community of banks, we are increasingly resilient against fraudsters, but we know you have concerns. 

For more resources, visit ftc.gov/romancescams. You can also check out our own icba.org and navigate to Advocacy > Our Positions > Fraud and Scams. If there are any issues you’d like to hear more about, please drop me a line.