The CommunityBanker 8 The fraud forest has transformed into a jungle, with predators lurking since the start of the pandemic, and these predators often target what they perceive as the weakest in the pack – the young and the elderly. In the Federal Trade Commission Consumer Sentinel Network Report for 2021, younger people (age 20 – 29) reported losing money more often than older people (age 70 – 79) when exposed to fraud. Virginians are not immune to this threat. The same FTC report ranked Virginia 14th in the nation for fraud, with 93,763 total fraud and other reports per 100,000 Virginians – and a total fraud loss of $112.9 million. Community bankers are often the first line of defense preventing their customers from becoming prey in this scam safari. Most safaris consist of a client, ranger and tracker. Here, the client is the customer. The ranger is you, the community banker with vast knowledge of the bush and the fraudsters that hunt within it. And the trackers are the front-line staff who engage your customers daily and, as trackers, are equipped with the weapons required to prevent harm to those customers. But how are these safeguards achieved? The answer is education! When I say education, I don’t mean “telling.” I mean “training.” Telling is often one-way communication we assume has reached the right audience with the right message. Training will change behavior. Let’s first talk about your trackers, your front-line staff. When communicating to your staff about fraud or a scam affecting your customers or presently impacting them, are you telling or training? Telling is an email or notice hung on a bulletin board in the breakroom letting them know a customer has fallen victim to a romance scam. The tagline at the end of this communication is probably “be on the lookout for this scam.” But on the lookout for what? Instead, you can train your trackers to identify the red flags of, say, a romance scam and then ask questions about suspicious transactions. For example, “Did someone you have never met in person ask you to send them money?” “Have you been told to provide a false reason for withdrawing or sending funds via a wire transfer?” “Have you been instructed to withdraw cash and convert it to cryptocurrency for payment of any type?” Like many other scams, romance scams are successful because the fraudster can get the victim under the ether. The ether is a state of mind where the victim no longer thinks logically, instead reacting on emotion. Having pamphlets/brochures about these scams available in the lobby is a good start, but that, too, is telling. Think about starting the training process with a town hall meeting. Partner with a local chamber of commerce and hold a one-hour session on identifying and preventing fraud and scams. Training in this area does not have to, and shouldn’t, be a one-time event. As humans, we forget – even with information as crucial as this. Let your customers know that you’ll continue to hold the training sessions, and use your social media presence to communicate about fraud and scams and how to avoid falling prey. The jungle’s terrain is ever-changing. Be the ranger that helps lead your customers to a scam-free sanctuary. Being your customers’ trusted partner is key! If they trust you, they will listen to you. By Mike Burke, Senior Robbery & Crisis Management Consultant The Jungle is Claiming Virginians as Fraudsters Prey on the Young and Elderly SHAZAM pioneered the PIN-debit point-of-sale transaction, still used worldwide today. We’re the only nationwide independent, memberowned debit network, processor and core provider supporting community banks and credit unions. Since we don’t answer to shareholders, we can reinvest profits in technologies our clients need as they serve the next generation of consumers. SHAZAM ensures our clients have the products and services they demand and expect in a cost-effective way. Founded in 1976 and headquartered in Iowa, we’re a leader in payments and financial technology, with a simple mission: Strengthening community financial institutions. Visit us today at shazam.net.
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