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The collapse of Silicon Valley Bank (SVB) and Signature Bank has, unfortunately, created a golden opportunity for scammers – one they haven’t let pass them by. Over the past few weeks, scammers have targeted everyone from businesses - banking with Silicon Valley Bank or not - to people simply interested in getting the latest news. Business owners and consumers alike should stay alert to potential scams.
Identify common scam techniques
Scams related to a bank collapse take many forms, but these tactics are particularly common:
Phishing attacks. Scammers use email, text messages, or phone calls to contact you, claiming to be from SVB or Signature Bank. They may ask you to make a payment, withdraw your funds, connect a secondary bank to your account, or receive invoice details. You may receive these messages even if you never had an account at SVB. Don’t let curiosity get the better of you. If you interact with scammers, or worse, give them sensitive information like your bank account number, you’ll put yourself at risk for identity theft. Some news sources report that scammers are using official government statements, such as this one issued by the Department of the Treasury, Federal Reserve, and FDIC, to give credibility to their phishing schemes. Remember, just because an email contains some accurate information doesn’t mean it comes from a safe source.
Business Email Compromise (BEC) scams. Numerous small businesses and startups were affected by SVB’s collapse, which created an opportunity for BEC scams. The collapse caused many companies to transfer funds to different banks. That meant staff needed to change payment details and other banking information. Scammers capitalize on this confusion. In a BEC scam, hackers get to access a business email account and send emails pretending to be a higher-up in a company. The “boss” asks a team member to transfer funds to criminal-controlled bank accounts with legitimate-sounding names and account numbers. If you wire funds to the wrong account, the money will be difficult (if not impossible) to retrieve.
Fake website cons. According to The Washington Post, people registered multiple SVB-related domains as soon as the news of the collapse broke. These domains can be used in a variety of scams. You might get a message directing you to a link with a domain name that appears to be from SVB itself. If you click, you could download malware onto your computer or mobile device, and if you enter sensitive information on said website, you could become the victim of identity theft. Scammers may use a similar tactic to imitate other financial institutions or companies that did business with SVB.
How to avoid these scams
- Think before you act. If you receive a message about a bank collapse, slow down and think about whether it’s coming from a trusted source. Verify the source of the message or call first, even if the sender pressures you to act right away.
- Train your employees. If you own a small business, teach your employees how to spot business email compromise scams and other common cons. Implement processes to keep you safe, such as always verifying a wire transfer by phone before sending the money.
Learn how to identify fake websites and phony emails with our tips on how to spot a scam. - Never click on suspicious links. If you receive an email (especially an unsolicited one) from a sender you don’t know, don’t click on the links. Do an internet search and go straight to the official website in question if an issue requires you to take action.
- Don’t trust your caller ID. Scammers spoof caller ID to lend credibility to their cons. In one BBB Scam Tracker report, the caller ID appeared as “FDIC” and urged the recipient to “claim your account funds in the next 24 hours.”
- Verify the source. If you receive a suspicious email or find yourself on a website that doesn’t seem quite right, take a few minutes to verify what you’re seeing. Look up the website address in your browser to see if you are really on the official site. A few minutes of your time can mean the difference between spotting a scam and falling for one.
For more information
Visit BBB.org/AvoidScams for more ways to recognize a scam before it’s too late. Read more about business email compromise scams.
If you spot a scam related to a recent bank collapse, report it at BBB.org/ScamTracker. Your report helps boost awareness for other business owners and consumers.