Independent Banker | How Fraudsters Prey on Good Nature Following Disaster
By Jen A. Miller
Scammers and hackers never stop seeking out targets, not even in the wake of a natural disaster. After Hurricane Helene caused nearly $60 billion of damage to western North Carolina in 2024, victims were slammed with unsolicited phone calls, phishing attacks and people posing as good Samaritans.
In these times of need, community bankers can help customers avoid compounding a natural disaster with a financial one.
Taking advantage of exhaustion
Scammers launch themselves at victims of disasters because they prey on people when they’re already exhausted and more likely to fall for a scam, especially if it looks like an offer of help.
“People are particularly prone to falling for these scams during a disaster situation because it’s traumatic,” says Scott Anchin, senior vice president of strategic initiatives and policy at ICBA. “People’s guards are down. It’s the time when people are least expecting to be taken advantage of.”
Disaster victims become almost immediate targets of phishing scams from people who pose as government or bank officials to try to get banking information. Bad actors might be trying to steal information to sell on the dark web or looking to apply for FEMA assistance using stolen information, such as names, addresses and Social Security numbers.
Scammers may even show up at people’s businesses and homes, masquerading as government officials who demand “payment” or offering high-interest bridge loans. Fake contractors also swarm, saying they’ll get to work right away if you just pay them cash, only to never return.
The online volleys aren’t as easy to spot anymore. “Fraudsters are so good now because of AI,” says Terri Luttrell, compliance and engagement director at banking software company Abrigo.
These fraudsters use the technology to build better, more believable websites, and unlike previous phishing attempts with poor syntax that would raise a red flag, emails now typically have proper spelling and grammar.
Scammers exploit fear to empower their fraud attempts. “Your home’s been damaged, your job’s been taken away because the place you worked at was damaged, whatever it is—when you’re afraid financially, it’s easy to get on the internet and look for solutions,” says Peter Gwaltney, president and CEO of the North Carolina Bankers Association. And with that, these victims can easily fall right into a trap.
Be a trusted source
Customers of community banks need to know where they can turn to, instead of the internet. Community bankers need to be out in front of their customers as a trusted option by proactively and directly reaching out to customers.
After Hurricane Helene, North Carolina community bankers were “bending over backwards to communicate with their customers,” says Gwaltney. This included telling customers where to go for federal aid, offering to defer payments and using the bank’s social media platforms to share scam warning reports from the FBI, FEMA and SBA.
Community bankers, says Luttrell, should attend any town halls or meetings held by communities or government agencies for residents who are trying to get back on their feet. Banks can also set up seminars or invite people into their branches, operating as a neighbor and a trusted partner.
These recovery and warning messages don’t need to go out only when disaster strikes. At The Citizens Bank in Olanta, S.C., fraud education is constant through email alerts, social media posts, messaging on its deposit banking website and even commercials starring its corporate investigator.
“We’re trying to keep [our fraud education] out there and in front of our customers,” says Margi Fleming, senior vice president of human resources, branch administration and marketing at the $1.08 billion-asset community bank.
Supporting due diligence
As an added layer of protection beyond education, bank technology can help monitor transactions and look for unusual spending patterns, like large cash withdrawals or wires going to accounts based in other countries. Bankers can then reach out to customers to verify the transaction and ask if they have vetted the money’s recipient.
That’s a particular concern in the region The Citizens Bank serves. Many people retire to coastal South Carolina from other areas of the country and may not know the local contractor scene. Asking those questions can be difficult, says Fleming, especially if a customer thinks they’re being accused of something. Even a simple comment, like a teller asking if they need anything “or want to make sure one of our mortgage folks has worked with this contractor,” she says, can stop a lot of hurt.
So, as the incidence of natural disasters increases, community banks should get on the front foot about educating customers before and during natural disasters.
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To see the full article, visit Independent Banker, “How Fraudsters Prey on Good Nature Following Disaster.”
