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New Scam Alert: Fraudsters Targeting PPP Loan Recipients

Scammers are at it again, this time targeting businesses that received Paycheck Protection Program (PPP) loans. Nebraska banks have reported an alarming increase in fraud attempts, where criminals are using publicly available borrower information to impersonate banks and trick business owners into giving up sensitive online banking credentials.

Here is how the fraud plays out:

1. Spoofing bank numbers: Fraudsters are posing as legitimate banks by spoofing their phone numbers, making it appear as if the call is coming from the bank.
2. Pretending to be your bank: The scammer then contacts PPP loan recipients, claiming they need to verify account details or assist with loan matters.
3. Stealing login credentials: Victims are tricked into providing their online banking credentials, including their user ID.
4. Resetting your passwords: Once they have the user ID, the fraudsters initiate a password reset and ask the victim to provide the one-time security code sent by the bank.
5. Gaining full access: With both the user ID and the security code, the scammer can log into the victim’s online banking account. From there, they add unauthorized users to the account, bypassing any security controls the bank may have in place.
6. Making fraudulent transfers: The scammer then initiates same-day ACH transfers, draining funds from the account before the fraud is even detected.

Protect your business by remembering these things:

• Your bank will never call for your login credentials. A legitimate bank will never ask for your user ID, password or one-time security codes over the phone. If someone calls requesting this information, hang up and contact your bank directly using a known and trusted phone number.
• Be skeptical of unsolicited calls. Always verify the identity of anyone asking for your banking information, even if the call appears to come from your bank. Scammers can easily spoof phone numbers to make them look legitimate.
• Educate your employees. Make sure everyone with access to your business’s online banking is aware of this scam and knows how to spot red flags.

Fraudsters are becoming more sophisticated, but by staying informed and vigilant, you can protect your business from falling victim to their tactics. If you suspect you’ve been targeted, contact us immediately and report the incident to law enforcement.

Your safety and security are a top priority – don’t let scammers compromise your hard-earned funds. For more fraud prevention and cyber security tips, visit our guide here.