Business Groups Warn of Scams Targeting PPP Loan Recipients

The Nebraska Bankers Association, the Nebraska Chamber of Commerce, the Greater Omaha Chamber, the Lincoln Chamber of Commerce and NFIB Nebraska are warning businesses about scams targeting recipients of Paycheck Protection Program loans. Several Nebraska banks have reported that fraudsters are calling recipients and impersonating bank employees or local law enforcement.
 
Scammers use PPP borrower information released by the Small Business Administration in 2020. The public SBA database includes business names, addresses, loan amounts, funding dates, number of employees and the names of the financial institutions that issued the loans.
 
Criminals then use this information to trick PPP borrowers into sharing online banking credentials or sending payments. In one common tactic, scammers call customers pretending to be from the bank’s fraud department and claim there is unusual activity on the account. They then send a link to reset login credentials and ask for the one-time passcode, which allows them to take control of the account.
 
In another version of the scam, callers pose as law enforcement officers and claim a warrant has been issued for the customer’s arrest for failing to appear at a court hearing related to a fraudulent PPP loan. The scammers then offer to accept a “cash bond” and provide instructions on how to send payment.
 
Fraud tactics include:

• Spoofing phone numbers: Scammers alter the caller ID so the phone number appears to be from the victim’s bank or law enforcement.
• Credential theft: Victims are pressured into providing usernames, passwords and one-time passcodes.
• Unauthorized access: With this information, scammers are able to reset passwords and bypass security settings.
• Same-day transfers: Criminals move funds out of accounts using Automated Clearing House transfers before the fraud is detected.

 
What you should do:

• Do not use any phone number provided during the call.
• Contact your bank using the number on its website or the back of your debit card.
• Verify law enforcement claims by calling your local police or sheriff’s department.
• Never share your password, PIN or one-time passcode.
• Be suspicious of anyone who pressures you to act immediately or threatens negative consequences.