Financial fraud news is a daily occurrence, with a notable increase recently in impersonation and romance scams. Impersonation scams target both individual consumers and businesses alike and are becoming increasingly sophisticated. Business impersonation scams may leverage the business’ actual logo and may even spoof phone numbers to lend credibility to the scam. Romance scams target a variety of individuals and certain profiles are more vulnerable than others, specifically those looking for connection and companionship.
American Riviera Bank provides dedicated resolution services led by Ana Gutierrez, Fraud Investigations Manager, to support clients who may have experienced financial fraud. Community banks, like American Riviera Bank, offer an advantage over larger institutions in fraud prevention and response through direct access to specialists. While major banks often route fraud calls through automated systems and multiple departments, community banks provide direct lines to fraud investigators.
"Our clients can call me directly if they suspect fraud," Gutierrez emphasized. "They don't have to navigate through automated phone trees or wait to speak with someone who may not be equipped to handle complex fraud cases. When time is critical for fund recovery, this personal access can make all the difference."
An expert in the latest deceptive financial practices, Ms. Gutierrez detailed how impersonation and romance scams work and red flags to consider. The sophistication of impersonation scams has grown in recent years. One common type of impersonation scam is when an organization’s system is accessed, and fraudulent email accounts are created that closely mirror legitimate businesses. These scams can target individuals by claiming to be a business like Intuit, Amazon, Microsoft, or even the bank’s fraud department, and typically involve an alert to a tech support issue. Businesses can also be targets, and we’ve seen an uptick recently in business clients reporting fraudsters who have impersonated bank employees and requested online banking credentials. Businesses are also targeted through compromised vendor emails, one of the most concerning trends happening now. Vendor emails are infiltrated and attack legitimate business relationships through convincing emails that look like invoices or other standard correspondence. Red flags to look for include:
Whether an individual or a business, impersonation scams involve pressure tactics that initiate stress and an immediate need to resolve a problem. For this reason, these fraud attempts may likely include a need to update banking information or change payment methods. Because the scam includes access to real invoice data or details about the vendor/individual relationship, these requests can appear completely legitimate.
"We recently worked on a case where a business owner had just spoken with his vendor by phone, then received what he believed was a follow-up email with new banking instructions," Gutierrez explained. "The email address had just one character different from the legitimate vendor's address, but the invoice details were completely accurate because the vendor's system had been compromised."
Romance scams have an emotional component that makes them particularly challenging to resolve, as victims often resist accepting that their relationship is fraudulent.
"We've seen cases where individuals believed they were in genuine relationships for years, sending money regularly to someone they never met in person. One recent case involved a seven-year relationship that the victim still believed was real even after losing significant amounts of money."
Ana Gutierrez, Fraud Investigations Manager
They often begin with “wrong number" text messages or a fake profile on a social media or dating site. After initial contact, elaborate fictional relationships develop and ultimately involve irregular financial requests. A romance scam can involve multiple scam typologies throughout the relationship. A tell-tale red flag of a romance scam-turned-investment scam is when a financial request is made and involves a transfer to cryptocurrency. This has become such a standard in romance scams that California legislation, the Digital Financial Assets Law (DFAL), has limited cryptocurrency kiosk deposits to $1,000.
Recovery of stolen funds remains one of the most challenging aspects of fraud cases. When businesses use third-party bill payment services for example, the recovery process becomes even more complex, involving multiple financial institutions and service providers.
"The likelihood of recovering funds decreases significantly with time," Gutierrez noted. "Once money is transferred to fraudulent accounts, criminals typically move it immediately through cash withdrawals or additional transfers. This is why immediate reporting is absolutely critical."
American Riviera Bank has also partnered with Carefull, a specialized financial protection service that offers clients enhanced monitoring and protection, which is free to ARB clients and employees.
As fraud schemes continue to evolve, the combination of personal service, financial security software, and comprehensive education offered by community banks positions them as crucial partners in protecting consumers and businesses. The direct relationships these institutions maintain with their clients, coupled with dedicated fraud investigation expertise, provides a level of protection and response that larger institutions often cannot match.
For businesses and individuals, the key to protection lies in maintaining vigilance, establishing direct relationships with financial institutions, and never hesitating to report suspicious activity. In the fight against increasingly sophisticated fraud, the personal touch of community banking may prove to be one of the most effective defenses available. For more information and resources, visit our fraud protection page.
Previous: 2025 WOW Awards Next: Building Your Child's Financial Foundation