West Haverstraw, NY – Amid a rising tide of financial fraud cases, the Rockland Business Association (RBA) hosted an informational seminar on financial fraud prevention at M&T Bank in West Haverstraw last night. The event, facilitated by M&T Bank’s Steve Breen, a seasoned business banker with over 20 years of experience in commercial lending, focused on educating individuals and business owners on safeguarding their finances from increasingly sophisticated scams.
The Growing Threat of Financial Fraud
During the seminar, Breen outlined the alarming frequency of fraud cases, sharing a real-time example where he and a colleague were assisting a local business owner who had been targeted by check fraud just hours before the event. Fraudulent transactions, particularly those involving unauthorized checks, wire transfers, and email scams, have become increasingly disruptive to businesses and individuals alike.
He detailed the devastating impact fraud can have on businesses, explaining that a fraudulent check can result in an immediate account freeze, affecting automated transactions such as payroll and vendor payments. “It’s extremely disruptive,” he said, adding that the two main methods for preventing check fraud are using Positive Pay, a system that allows businesses to pre-approve checks before they are processed, or closing and reopening a new business account—an arduous process for companies with numerous automatic payments set up.
Common Types of Financial Fraud
Breen highlighted several prevalent forms of fraud, including:
- Business Email Compromise (BEC): Scammers impersonate executives or vendors and send fraudulent wire transfer requests.
- Check Washing & Forgery: Criminals alter the payee and amount on stolen checks before cashing them.
- Zelle and ACH Fraud: Increasingly, fraudsters are using peer-to-peer payment systems to trick individuals into sending money that is nearly impossible to recover.
- Deepfake and AI Fraud: Emerging threats involve scammers using artificial intelligence to replicate voices and facial images, tricking victims into making unauthorized transactions.
Protective Measures for Businesses and Individuals
To mitigate the risks, Breen advised attendees to take proactive steps:
- Use Dual Authentication – Always confirm transactions via a second method, such as a phone call, before processing wires or ACH transfers.
- Monitor Bank Accounts Daily – Quick detection of unauthorized transactions can prevent losses.
- Enable Fraud Protection Services – Implement tools like Positive Pay, ACH Monitoring, and real-time payment filters.
- Beware of Urgency Scams – Emails or calls demanding immediate action should be treated with suspicion.
- Secure Email and Banking Access – Use multi-factor authentication and unique, complex passwords.
- Educate Employees – Ensure staff members are trained to recognize fraudulent tactics.
- Consider Cyber Insurance – For businesses, fraud-related losses can be mitigated with cyber liability insurance.
Real-World Consequences
The seminar featured cautionary tales of local businesses and individuals who fell victim to fraud, including an electrical contractor in Rockland County who nearly lost $40,000 due to an email scam. Breen also recounted an incident involving a woman who was scammed into repeatedly wiring money to a fraudulent overseas contact, despite multiple warnings from bank staff. Eventually, her accounts had to be shut down to prevent further losses.
Community Resources and Future Prevention Efforts
Attendees were encouraged to utilize fraud prevention resources available through AARP, law enforcement, and banking institutions. The event concluded with a reminder from Ken Zebrowski, President of the Rockland Business Association, urging local businesses to stay informed and proactive in protecting their financial assets.
“Cyber attacks and fraud schemes are evolving every day,” Zebrowski noted. “Having these discussions and implementing safeguards are critical steps in staying ahead of the criminals.”
As financial fraud continues to surge nationwide, workshops like these play a crucial role in equipping businesses and individuals with the knowledge and tools necessary to protect their assets. The Rockland Business Association plans to hold more events on cybersecurity and fraud prevention in the coming months.
For those interested in learning more, the RBA encouraged businesses and individuals to reach out to their banking representatives and stay vigilant in an era where financial scams are becoming more sophisticated.