Existing Relationships Exploited by Hackers
Imposter fraud occurs when someone acts as if they work for a company that you know and trust such as a utility, bank, or insurance company. The hacker uses the current relationship between you and the company to request a payment or inform you that a change will be made to your traditional payment arrangement.
Providing information to the hacker allows them to redirect these payments. The payments look normal to the bank because they are being made by authorized users. Typically, this type of fraud is not quickly identified, making it harder to recover funds, particularly those sent electronically.
Best Practices to Avoid Imposter Fraud
•Require verification on all requests for payments made outside normal channels or changes to vendor remittance information.
•Cross-verify. If the request came by mail or email, verify it with a phone call. If the request came by phone, verify it by email.
•Always use the contact information that you have on file to verify the requestor. Never use the contact information that comes with the request.
•Reconcile your accounts daily. If you spot an unauthorized transaction or unusual activity, notify First Bank immediately.