Texting and Phishing Scams – Be Aware

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Every day, thousands of people fall for fraudulent emails, texts, and calls from scammers pretending to be a bank. These are commonly referred to as phishing scams and victims can lose hundreds, even thousands of dollars. At American Federal we (as well as other institutions) have seen an uptick in the number of instances of fraud attempts. In fact, below is an example of an actual Phishing text a customer received.

Phishing attempt

Often times, as in this case, the fraudster will use an actual financial institution’s name. It’s important that you never interact with a message unless you are expecting it and know exactly where it is from. If a message is suspect, always contact your local American Federal office.

Phishing scammers want you to click on a link or share personal information (like a password or social security number) so that they can use that information to steal your money and/or identity. Below is some additional information on phishing scams. 

The Bait

  • Scammers use familiar company names or pretend to be someone you know. They send a text or ‘spoofed’ email or even call you in a way that makes it appear to be from a friend, family member, or an employee of a trusted organization like your bank, credit card company, government agency or phone company.
  • The bait may look and sound like a legitimate request. The scammers might even have personal information about you, like your date of birth or password.
  • They often say they need your information now, to protect your account, to help a loved one in trouble, or to confirm login or password information and warn that something bad will happen if you do not act immediately.
  • They ask you to give sensitive information like passwords or bank account numbers or they ask you to click on a link. If you click on the link, they can install malicious programs that can lock you out of your computer or enable them to gain access to use your personal or financial information, even from outside of the country.

Avoid the Hook

  • Take a few minutes to check a request out. You wouldn’t give your house keys to someone you don’t know or trust. Don’t give someone the keys to your bank account before you know who that person is and are certain that person can be trusted.
  • If someone calls asking for information or wants you to act, tell the caller you will call back, then call the number on your billing statement or credit card to report the call. If the caller tries to convince you to stay on the phone, it’s a scam. Hang-up and call the trusted number.
  • If it’s an email, don’t click on it. Go to the company’s website using a bookmark or type it in and check for alerts on your account.
  • If you’re unsure, ask a friend, coworker, family member, or caregiver to help.

Look for Scam Tip-Offs

  • You don’t have an account with the company.
  • The email, text or caller is asking for account information, including passwords.
  • Grammatical errors or something just seems fishy or not right.

Protect Yourself

  • Keep your computer and mobile device security software up to date and regularly back up your data.
  • Change your security settings to enable multi-factor authentication—a second step to verify who you are, like a text with a code—for accounts that support it.
  • Change any compromised passwords right away and do not reuse those passwords for other accounts.
  • Use a cloud-based account such as Google Drive or Microsoft OneDrive that can allow you to restore your data if your computer is comprised.
  • Don’t provide any information to anyone who calls, sends a text, or emails you out of the blue. Only do it if you’ve called or emailed them.

Protect Your Business and Employees from Email Compromise Scams

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Here at American Federal Bank, protecting our customers from fraud is a top priority and we want you to know about a threat that we have seen multiple businesses fall victim to.

Fraudsters know that many business owners and executives will be out of the office during the upcoming spring and summer seasons, and will use the opportunity to try and trick your employees. The fraudsters send email messages to your employees that appear to come from a company owner or executive, along with instructions to send money or sensitive information to them. This threat is very real and we’ve seen significant losses happen in our communities.

These attempts are especially deceitful because emails often make what appears to be a legitimate request, including sending an invoice with updated payment information. Employees believe they are just doing what their superiors or coworkers are asking them to do, and mistakenly comply.

Below are some steps to reduce the chances of an employee becoming a victim of business email compromise:

  • Educate and train employees to recognize, question, and independently authenticate changes in payment instructions, payment methods (e.g., ACH to wire), or when pressured to act quickly or secretively.
  • Be old-fashioned! Verbally authenticate any changes via phone call to a verified telephone number.
  • Review accounts frequently.
  • Initiate payments using dual controls.
  • Never provide passwords, usernames, authentication credentials or account information when contacted.
  • Don’t provide nonpublic business information on social media.
  • Avoid free web-based email accounts for business purposes. A company domain should always be used in business emails.
  • Consider registering domains that closely resemble the company’s actual domain to make impersonation harder.
  • Do not use the “reply” option when authenticating emails for payment requests. Instead, use the “forward” option and type in the correct email address or select from a known address book.

If you do fall victim to one of these fraud attempts, please reach out to American Federal Bank as soon as possible so we can assist.

Thinking of Home Improvement? Think American Federal!

homeowners remodeling their home

If you’re looking at making improvements or repairs to your home, an American Federal Home Improvement Loan could be a great option for you.

Our Home Improvement loans can be used to  fix up single-family homes, as well as manufactured homes, multifamily properties and nonresidential buildings. Borrowers can also use the proceeds for site improvements and historic preservation. Basically, the improvements must “protect or improve the basic livability of the property.” (Loans under this program are not allowed to be used for luxury improvements, such as swimming pools or elaborate landscaping, or for cosmetic upgrades.)

Loans of less than $7,500 typically are unsecured, though loans above that amount will use your property as collateral. You can make the improvements yourself or use contractors.

Some examples of qualifying projects include:

  • New flooring
  • New roof
  • Replacing home systems (HVAC, plumbing, etc.)
  • New appliances
  • Adding accessibility for someone with a disability
  • Energy-efficiency improvements

Equity requirements are not as stringent for our Home Improvement loans, which makes them a good choice for people who have recently purchased the property they want to improve. Also, with the added equity from the completed improvements you may also be able to refinance into long term financing, saving your even more in the long term and simplifying your monthly payments.

If you’re interested in learning more about Home Improvement loans, or any other mortgage products, contact your American Federal Banker.

The Importance of Small Business Security Check-Ups

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Cyber security remains a growing concern for small businesses. It’s a good idea for business owners to conduct periodic reviews of their data security program.

Security Check-Up Suggestions

The Small Business Administration, the Federal Trade Commission and the American Bankers Association offer a number of suggestions aimed at helping businesses protect their files and devices and their company and customer information from cyberattacks.

Start with a Plan

Begin by understanding your business risk profile.  What are you trying to protect and where are you most vulnerable? Identify devices, servers and vendors that store company date and customer credit card and other information.  Know what vendors supply the software you use, and how secure their practices are.  Also, take a broader look at protecting your financial and bank data, personnel information and intellectual property.

Review Policies and Procedures

Re-evaluate your security policies and procedures that determine access controls to acceptable use. Have you added new products and services or entered new markets that altered the operations of your business?  Who has access to information in your company and the log-in credentials to conduct transactions?

Train Employees

The weakest link in a security plan is employees. From day one, explain the importance of your organization’s data security practices to employees. Conduct regular training that outlines your company’s practices and how to spot new risks, security vulnerabilities and identify theft.  Create a culture of security by demonstrating what you expect and making security an essential part of employees’ duties.  When employees leave, terminate access immediately.

Warn about Phishing

Educate employees on the dangers of spear phishing – emails containing information that makes them look legitimate. Require independent verification of emails requesting sensitive information.  Train employees not to reply to email when they do not recognize the sender, and not to use links, phone numbers or websites contained in the suspect email.

Cover the Basics

Implementing the basic steps of cyber hygiene will protect your business and reduce the risk of a cyberattack.

  • Update Software. Update and apply the latest patches to your operating systems and software, including anti-virus software and antispyware, apps and web browsers. Set updates to take place automatically.
  • Secure your Network and Files.   Safeguard your Internet connection by using a firewall. Back up files offline, on an external hard drive or in the cloud.  Control physical access, too. Make sure you also store your paper files securely.
  • Encrypt Devices. Encrypt devices and other media that contain confidential, sensitive and proprietary information.  This includes laptops, smartphones, inventory scanners, digital scanners, removable devices, backup tapes and cloud storage solutions.
  • Use Multi-Factor Authentication. Enable multi-factor authentication to access areas of your network and sensitive information.  This requires additional steps beyond logging in with a password.
  • Require Strong Passwords. Use passwords for all computer hardware, including routers, laptops, tablets and smartphones. Require strong passwords of 8-12 characters that are a mix of UPPER and lower case letters, numbers and symbols.  Passwords must not contain personal information, like part of a TIN, or be easily cracked, like “password,” “qwerty” or “12345678.” Never leave devices unattended in public places and avoid pubic WiFi.

Secure Payment Processing

Work with your bank or credit card processor to ensure the most trusted and validated tools and anti-fraud services are being used.  Isolate payment systems from other, less secure programs and do not use the same computer to process payments and surf the Internet.

Develop an Incident Response Plan

Know what to do and who to call when a cyber incident occurs.

Resources

Report scams against a small business at FTC.gov/complaint.

These websites and publications also have information on securing sensitive data:

American Federal Employees Earn ‘Sales Star’ Recognition

Eighteen American Federal Bankers and employees have earned ‘Sales Star’ recognition from American Federal Bank for outstanding sales and sales referral performance in 2022.

A “Sales Star” is the highest honor of recognition an employee can earn at American Federal. American Federal’s 2022 Sales Stars are:

  • Adam Braunberger, Business Banker, Fargo
  • Dan Erdman, Private Banker, Crookston
  • Chrissa Frisk, Credit Analyst, Crookston
  • Chris Grettum, Personal Banker, Downtown Fargo
  • Jason Jaeger, Business Banker, Fargo Downtown
  • Charlie Jorgensen, Personal Banker, Moorhead
  • Michael Kjelshus, Ag/Business Banker, Grand Forks
  • Paige Kjesbo, Market President, Wahpeton
  • Andrew Lerud, Business Banker, Fargo
  • Joanne Loeslie, Associate, Grand Forks
  • Justin Marquis, Ag/Business Banker, Fosston
  • Dustin Morris, Market President, Fergus Falls
  • Dan Paulson, Market President, Fosston
  • Ryan Paulson, Ag/Business Banker, Fosston
  • Alison Perez, Personal Banker, Grand Forks
  • Patty Roers, AFI Operations Manager, Fargo
  • John Schumacher, Market President, Grand Forks
  • Amanda Wolf, Lead Associate, Fargo

In recognition of their achievement, American Federal “Sales Star” employees and their families were invited to attend a weekend Sales Star Retreat, training seminar and awards banquet in their honor at the Arrowwood Resort and Conference Center in Alexandria, MN January 27-29, 2023.

Employees Compete in Six Divisions

Throughout the calendar year, every employee at American Federal competes in one of six Divisions in the Sales Star Recognition Program. The winners for the respective divisions for 2022 were:

Ag/Business Banker – Adam Braunberger, Fargo
Private Banker – Alison Perez, Grand Forks
Personal Banker – Dan Erdman, Crookston
Sales Manager – Dan Paulson, Fosston
Business Unit Referral – Joanne Loeslie, Grand Forks
Home Office Referral – Patty Roers, Fargo

Congratulations to the Division winners and all Sales Stars!

Tips to Establish Good Saving Habits

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Saving money is an essential element of financial health, but is something that many people seem to have trouble with. Although it does take some discipline, below are some tips on how to get in the habit of saving.

Pay yourself first.

If you wait to see what income is left over after paying expenses, you are less likely to save. Determine in advance how much money you plan to deposit each month. If you receive a raise, increase the amount of money deposited into your savings account.

Take advantage of bank technology.

Consider automatic payroll deductions or automatic transfers from checking to savings. Arrange to have a specific amount transferred to your savings account every pay period.

Pay your bills on time.

While 97 percent of Americans pay their bills on time, some consumers pay late fees. Alleviate the hassle by scheduling a time to pay bills, and put them in the mail with enough time to get to the creditor or use electronic payments and specify a date to pay.

Determine needs versus wants.

Do you need to eat out every day for lunch? Do you need that gourmet cup of coffee in the morning? By bringing your lunch to work a couple days a week, you can save hundreds of dollars a year.

Consult your American Federal Banker.

Ask which bank products and services would best suit your needs. Your banker is the best source of information about accounts and interest rates available.

Contact your local office or your American Federal Banker for more information on establishing and building your savings account.

Using Credit Cards Wisely

Girl holding credit card

Credit cards have become an everyday tool that many people use to manage their personal finances and make purchases. They also enable individuals and families to obtain goods and services, deal with emergencies, and build a credit history for larger purchases such as a car or home. Today, over 70 percent of all families have at least one credit card. While they can be a useful financial tool, it’s important to use them wisely.

Below are answers to some common questions about credit cards, as well as a list of credit card tips you should keep in mind.

What is an Annual Percentage Rate (APR)?

For credit cards, the Annual Percentage Rate or APR is basically the interest rate. The APR is applied to your balance to calculate the interest you owe. The dollar amount of interest you owe is shown as a finance charge on your billing statement for any month you are charged interest.

What is the grace period on purchases?

Most credit cards give you the chance to avoid interest on purchases (in effect, an interest-free loan) if you pay your credit card bill in full by the due date. This is called the grace period on purchases. The grace period is the period between the date of the purchase and the due date. To get it, you usually must pay your bill in full every month. When the grace period does not apply to purchases, you will pay interest on the purchases from the date of the transaction. Most credit cards do not give you a grace period on cash advances and balance transfers. 

What happens to the grace period if you paid in full one month and the following month you do not pay in full?

If you do not pay in full one month, you will lose the grace period. Typically, you will owe interest from the first day of the billing period in which you did not pay in full. This means that if you paid in full in January, but only paid part of the bill in February, you will pay interest from the first day of February based on the full average daily balance for the February billing period when your bill arrives in March.

What if I only pay the minimum amount due?

If you consistently pay only the minimum on your credit card, it will take you a long time to pay off the balance. You may end up paying a lot of interest. The amount of interest will depend on your APR and the amount of your balance. Pay as much as you can, as soon as you can, and always pay by the due date.

 What if I do not pay on time?

 If you do not pay at least the minimum amount due, credit cards will charge a late fee. Paying late may also cause your APRs to increase.

How do I know what my credit limit is?

Your credit limit will be stated when you first get your card. Over time, based on your needs, usage, and qualifications, the limit may change. Your current credit limit appears on your billing statement each month.

What happens if I go over my credit limit?

If you go over your credit limit, you may have to pay a fee. In addition, your APRs may increase. Be aware that you may go over your credit limit even if the transaction is authorized. So keep track of your transactions and how close you are to your limit.

A few final tips…

  • Pay as much as you can, as soon as you can, and always pay by the due date. If you do not pay your balance in full, pay the remainder off as soon as you can; do not wait for the due date.
  • Keep track of your balance by checking it online or by phone.
  • To avoid paying your bill late, schedule automatic payments online, mail payments at least one week before the due date or pay by phone.

If you have credit card questions or are interested in signing up for a card, please contact your American Federal Banker or apply online. 

Tips to Avoid Holiday Scams

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The holidays can be a wonderful time of giving, family and togetherness. Unfortunately, it’s also a time when scammers are hard at work to get their hands on your money. The information below from the FBI details how you and your family can protect yourselves.

 

(via fbi.gov)

The two most prevalent of these holiday scams are non-delivery and non-payment crimes. In a non-delivery scam, a buyer pays for goods or services they find online, but those items are never received. Conversely, a non-payment scam involves goods or services being shipped, but the seller is never paid.

Whether you’re the buyer or the seller, there are a number of ways you can protect yourself—and your wallet.

Practice good cybersecurity hygiene. 

  • Don’t click any suspicious links or attachments in emails, on websites, or on social media. Phishing scams and similar crimes get you to click on links and give up personal information like your name, password, and bank account number. In some cases, you may unknowingly download malware to your device. 
  • Be especially wary if a company asks you to update your password or account information. Look up the company’s phone number on your own and call the company.

Know who you’re buying from or selling to.

  • Check each website’s URL to make sure it’s legitimate and secure. A site you’re buying from should have https in the web address. If it doesn’t, don’t enter your information on that site.  
  • If you’re purchasing from a company for the first time, do your research and check reviews.
  • Verify the legitimacy of a buyer or seller before moving forward with a purchase. If you’re using an online marketplace or auction website, check their feedback rating. Be wary of buyers and sellers with mostly unfavorable feedback ratings or no ratings at all.
  • Avoid sellers who act as authorized dealers or factory representatives of popular items in countries where there would be no such deals.
  • Be wary of sellers who post an auction or advertisement as if they reside in the U.S., then respond to questions by stating they are out of the country on business, family emergency, or similar reasons.
  • Avoid buyers who request their purchase be shipped using a certain method to avoid customs or taxes inside another country.

Be careful how you pay.

  • Never wire money directly to a seller. 
  • Avoid paying for items with pre-paid gift cards. In these scams, a seller will ask you to send them a gift card number and PIN. Instead of using that gift card for your payment, the scammer will steal the funds, and you’ll never receive your item. 
  • Use a credit card when shopping online and check your statement regularly. If you see a suspicious transaction, contact your credit card company to dispute the charge.

Monitor the shipping process.

  • Always get tracking numbers for items you buy online, so you can make sure they have been shipped and can follow the delivery process.
  • Be suspect of any credit card purchases where the address of the cardholder does not match the shipping address when you are selling. Always receive the cardholder’s authorization before shipping any products.

And remember: If it seems too good to be true, it probably is.

If you have questions on this or any other security-related topics, please contact your local office.

 

Avoid Money Mule Scams

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If someone sends you money and asks you to send some or all of it to someone else, you could be a money mule. Know what to watch for and avoid becoming a money mule with these tips from the ABA Foundation 

 

What’s a Money Mule?

When criminals obtain money illegally, they need to hide or launder the source of the funds. One method they use is to look for people to transfer that money for them. Those people become money mules, and are used to move and launder the money.

If someone sends you money and asks you to send some or all of it to someone else, you could be a money mule. Often, scammers will approach you online, but they may also call you directly. Regardless of the particular method, the goal is the same—to use consumers to move money so that law enforcement cannot easily track it.

If someone asks to use your bank account or asks you to open a bank account in your name to send and receive money on their behalf or business, don’t do it! Even if they offer to pay you some cash for your trouble, it’s not worth it. You may not only be risking your financial assets and identity, but your actions could be criminal.

Who Do Criminals Target?

Anyone can be a potential target. But, scammers often prey on elders, students, millennials, those looking for employment and those on dating websites.

Witting vs. Unwitting Mules

Unwitting money mules are those who are unaware of the scam.

Witting money mules are aware that their efforts are part of an organized crime scheme. These individuals may even have been warned by financial institutions, law enforcement or other agencies that what they are doing is wrong, but continue to serve as money mules in the hopes of receiving a share of the monetary gains or some other benefit.

Are There Legal Consequences?

Yes, acting as a money mule is illegal whether or not someone is aware of the fraud. Money mules could be prosecuted, fined and incarcerated.

Are There Other Repercussions?

Beyond the legal ramifications of acting as a money mule, the people who serve as money mules may open themselves up to identity theft. All of their personally identifiable information can be stolen by criminals, which can lead to theft of their financial assets.

How Can You Avoid Becoming a Money Mule?

  • Be wary of unsolicited emails, texts or other communications that promise you easy money with little or no effort.
  • Don’t share your financial details or give access to your bank account to anyone you don’t know and trust.
  • Don’t purchase virtual currency or gift cards on someone else’s behalf.
  • Never use your own bank account or open one in your name to transfer money for anyone else.
  • Never send money to an online romantic interest even if he or she sends you a check first.
  • Watch out for messages where people claim to be abroad and ask you to send or receive money on their behalf or that of their loved one. They may claim to be quarantined, recovering from COVID-19 or in the military. Don’t fall for the scam!
  • When seeking employment, conduct research and confirm the legitimacy of any company that may offer you a position. You can ask them for a copy of their license to conduct business in your state.

What Should You Do If You Spot a Scam?

  • Don’t continue communicating with the scammers. Break off all contact and stop transferring money for them.
  • Tell your bank, the wire transfer company, gift card provider or other payment provider right away.
  • Report it to the Federal Trade Commission at ftc.gov/complaint.
  • Contact law enforcement and reach out to your local FBI field office.
  • If you or someone you know is an elder who has been victimized, call the National Elder Fraud Hotline at 1-833-FRAUD-11 (1-833-372-8311).

If you have questions on this or any other security-related topics, please contact your local office.

 

Protect Yourself Online

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Although the internet has many advantages, it can also make users vulnerable to fraud, identity theft and other scams. According to a 2018 Gallup Poll, one in four Americans has experienced cybercrime. The American Bankers Association recommends the following tips to keep you safe online:

  • Keep your computers and mobile devices up to date.  Having the latest security software, web browser, and operating system are the best defenses against viruses, malware, and other online threats. Turn on automatic updates so you receive the newest fixes as they become available.
  • Establish passwords. A strong password is at least eight characters in length and includes a mix of upper and lowercase letters, numbers, and special characters.
  • Watch out for phishing scams. Phishing scams use fraudulent emails and websites to trick users into disclosing private account or login information. Do not click on links or open any attachments or pop-up screens from sources you are not familiar with. 
  • Recognize and avoid bogus website links. Cybercriminals embed malicious links to download malware onto devices and/or/ route users to bogus websites. Hover over suspicious links to view the actual URL that you are being routed to. Fraudulent links are often disguised by simple changes in the URL. For example: www.ABC-Bank.com vs ABC_Bank.com
  • Keep personal information personal. Hackers can use social media profiles to figure out your passwords and answer those security questions in the password reset tools. Lock down your privacy settings and avoid posting things like birthdays, addresses, mother’s maiden name, etc.  Be wary of requests to connect from people you do not know.
  • Secure your internet connection. Always protect your home wireless network with a password. When connecting to public Wi-Fi networks, be cautious about what information you are sending over it.
  • Shop safely. Before shopping online, make sure the website uses secure technology. When you are at the checkout screen, verify that the web address begins with https. Also, check to see if a tiny locked padlock symbol appears on the page.
  • Read the site’s privacy policies. Though long and complex, privacy policies tell you how the site protects the personal information it collects. If you don’t see or understand a site’s privacy policy, consider doing business elsewhere.

If you have questions on this or any other security-related topics, please contact your local office.