How to recognize scams and fraud

Amy Doner of First United Bank's fraud department
presented a program today on recognizing and
avoiding fraud and scams during a Chamber event.

MARION, Ky. – Scammers continue to find new ways to steal personal information and money, but a few warning signs can help residents avoid becoming victims.

Amy Doner, fraud specialist with First United Bank and Trust Company, spoke last week at the Crittenden County Chamber of Commerce’s Lunch and Learn event catered by Marion Pit Barbecue and held at Rocket Arena on the high school campus.

Doner says recognizing the tactics used by scammers is one of the best defenses against fraud.

Banks like First United, she said, are beginning to create their own fraud departments with guidance from the Kentucky Bankers Association. First United started its fraud investigation and prevention department two years ago.

According to information provided by Doner, many scams follow a similar pattern. Scammers often pretend to represent a familiar organization, claim there is an urgent problem or a prize waiting, pressure victims to act immediately and demand payment through specific methods.

“One common tactic is impersonation,” Doner said.

Scammers may claim to be calling from a government agency such as the IRS, Social Security Administration or Medicare. Others may pretend to represent a utility company, technology company, charity or another organization the victim recognizes.

Technology has made those schemes more convincing.

“Fraudulent callers can disguise phone numbers so the name appearing on caller ID looks legitimate,” she

told those at the luncheon.

Scammers also frequently create a sense of urgency. They may claim someone owes money, a family member has an emergency, an account has been compromised or a computer has a virus. Others promise lottery winnings, sweepstakes prizes or other rewards but require a fee before the victim can collect.

“They also want to put pressure on you. They might give you a deadline until the end of the day to act,” Doner said.

Fraud experts warn that pressure is one of the biggest red flags. Legitimate businesses and organizations will allow people time to verify information and make decisions. Scammers often push victims to stay on the phone, act quickly and avoid talking to others.

Officials recommend stopping before responding to a suspicious call, email or text and discussing the situation with a trusted family member, friend or neighbor.

“Scammers will commonly request payments that are difficult to recover,” Doner said. “It might be through a pay app like Venmo or Cash App, or it could even be by P2P.”

It also might include payment by cryptocurrency, wire transfers or gift cards.

“Some scams involve sending fake checks and asking victims to deposit the money and return a portion before the check is discovered to be fraudulent,” she said.

Residents are also reminded not to provide personal or financial information after receiving unexpected calls, emails or text messages. That includes Social Security numbers, banking information and credit card numbers.

If someone believes they have become a victim of fraud, First United Bank recommends taking immediate action. Victims should contact their financial institution, turn off compromised debit cards, change passwords and continue monitoring accounts.

If a scammer obtains a Social Security number, consumers are encouraged to contact one of the three major credit reporting agencies – Experian, TransUnion or Equifax – to place a fraud alert on their credit file.

“You will want to immediately put a freeze on your credit,” Doner said.

If scammers gain access to a computer or mobile device, disconnect the device from the internet, update security software and remove any apps installed at the scammer’s direction.

Fraud cases involving financial losses should also be reported to local law enforcement and to the Federal Trade Commission at ReportFraud.ftc.gov.