North Shore Bank’s CrimeBusters for April 2023 are: Westgate personal banker Jeshon Alexander, Northside teller supervisor Kelly Elliott, checking services manager Erica Johnson, Pulaski area manager Katie Longsine, senior checking services rep Renee Machado, and Sister Bay teller Debbie Proto-Maring.

Security Saves: This Month’s Highlights
A customer came into a branch wanting to send a wire for $30,000, based on a tip he got from a “friend.” The wire didn’t make sense to the banker, and the customer could not provide any details when asked. When the banker told the customer Security would need to review the wire before it could be sent, he became upset and left the branch.

Later that day, the customer came back and said he’d gotten a message from Microsoft, via a pop-up window on his PC. “Microsoft” told him a $15,000 freeze had been placed on his North Shore Bank account. The fraudster then connected him with a “North Shore Bank representative” who said they were investigating the freeze, but that to protect the rest of his money, the customer should wire his funds to another bank that was protected by the FDIC. The fraudsters had even given the customer a script of what to tell our bankers when we asked about the wire.

Security says: Scammers often use wire transfers because they’re an easy way to transmit a large amount of money quickly. It’s hard to say no to a customer — whenever possible, we want to find ways to say yes! — but this is a case where saying no prevented the customer from losing $30,000.

Sometimes when a wire is denied, the fraudster then urges the customer to withdraw cash. Why? Because of another growing trend: Bitcoin ATM deposits. These machines accept cash and exchange it for Bitcoin cryptocurrency, which is entirely digital.

Bitcoin ATM scams can involve anything from a romance scam to a PC hack to the scammer posing as law enforcement or a government official. The scammer sends the victim a QR code and tells them to use it after depositing the cash in the ATM. But the QR code tells the ATM to deposit the money in the scammer’s digital wallet. It’s that easy — the scam preys on the victim’s lack of knowledge about how the technology works. But can’t the transaction be stopped or reversed? Unfortunately, no. Because of the decentralized nature of cryptocurrency, once the deposit is confirmed, the money is essentially irretrievable.

Not all wire transfers or Bitcoin purchases are scams, of course. So how do we protect our customers? The most important thing is to know your customer. If a customer comes in to withdraw or wire a large amount of money:

• Review their transaction history to see if this is typical for them.
• Make conversation and ask questions. Do they seem nervous or anxious?
• Has the money been transferred from savings or a line of credit? If so, that may be an indication the customer is the victim of a PC hack or another type of scam.
• Talk about scams that are going on and explain that’s why you’re asking questions. We want to make sure we protect our customers and the money they’ve worked so hard for.

Check out these articles about the rise in crypto scams, how they can happen, and how to protect yourself and your customers:

AARP: What you need to know about cryptocurrency scams
CT Insider: CT man duped into putting his life savings in a Bitcoin ATM

As always, trust your instincts! If something feels off, contact Security immediately for guidance on how to proceed.

Started by former security officer Peggy Theisen in 2013, the CrimeBuster Awards recognize bank employees who identify security risks and take action to protect North Shore Bank and our customers.