Reading or watching the news these days, it’s not unusual to see a story about someone losing their savings after getting tricked by some sort of intricate scam. Fraud and scams are getting harder to catch, and are a serious concern for anyone. But for farmers and ranchers, the consequences of being affected by a major scam or fraud can be devastating.

We reached out to Heidi Schumacher, Bell Bank’s enterprise fraud manager, to learn about types of fraud farmers, ranchers and producers should be aware of, and what you can do to protect yourself and your operation. Heidi has 15 years of experience with Bell, and has spent the last 9 years working in the area of fraud prevention. She stays informed on the latest fraud trends, working to help Bell detect and prevent fraud and scams and protect our clients and customers.

How have fraud and scams changed over the last 10 years?

Fraud and scams have become a lot more sophisticated over the last decade, and the dollar amounts involved have increased substantially. COVID changed the game so that fraud and scams could take place from anywhere, and fraudsters no longer need to come into a bank or meet face to face in order to commit a crime.

Who’s most vulnerable to fraud?

Everyone is vulnerable to fraud! There are some factors, however, that can put you especially at risk, such as not monitoring your accounts daily via online banking or paying for things regularly with checks. Check fraud continues to be a big problem because of increasing mail theft. Once upon a time if a check went missing, you could put a stop-pay on the item and issue a new check. But today, it’s too big of a risk that the check, even if cancelled, could fall into the wrong hands, be mass produced, and then be mailed out all over the country.

What are some types of fraud or scams that farmers and ranchers should be aware of?

Business Email Compromise (BEC) is a big one, where a fraudster impersonates a known contact or vendor by email, and tricks someone into paying a fake invoice. This can be avoided by verifying who you’re paying, and vetting the vendor you’re working with. Also, pay attention when any payment destinations suddenly change. 

Something else we’ve seen lately is when farmers or ranchers think they’re purchasing farm equipment via an online auction or from an out-of-state seller. We’ve had a few customers who thought they were buying tractors from out-of-state auctions only to discover a scammer was using an actual auction’s website and name. Make sure you know exactly what you’re purchasing and who you’re purchasing it from, because once a wire is sent, it can’t be disputed – it’s a guaranteed payment. 

Another example that comes to mind: We had a customer affected by a BEC where they thought they were paying a vendor they were familiar with. Unfortunately, they sent money to a fraudster, and they didn’t realize it until the real vendor reached out later to ask about their payment. At that time, they understood what had happened: they had received a fraudulent email stating they needed to open a new account because of fraud on their old account, and the payment needed to be rerouted. By sending out the payment instead of calling their vendor to verify the change, the customer suffered a massive loss. 

What are some best practices someone can follow to make sure their accounts aren’t compromised?

One thing you can do is stop using checks to pay employees, vendors or bills. Instead, set up direct deposit for employees and auto payments for bills. When it comes to paying vendors, make sure they’re well known or fully vetted. 

Additionally, keep a close eye on your account activity. Never click on or open attachments from unknown email senders. If you receive a call that claims to be from Bell, but is someone you don’t know or aren’t familiar with, tell them you’re going to call Bell’s main number or the number of someone you know at the bank to verify the information.

If you suspect something isn’t right, reach out to your banker immediately. For example, if you see transactions on your account that you don’t remember, or if you receive suspicious calls, texts or emails, contact us right away. 

How can banks and their customers stay ahead of these bad actors?

Bell offers fraud prevention tools for customers to help you watch your account as closely as possible – these include online banking, alerts for debit card transactions, positive pay for business customers, and more. I’d encourage everyone to utilize these tools first and foremost. On top of that, protect your personal information. Shred your bank statements, stop writing checks, and above all be cautious when giving out your personal info. When in doubt, give us a call – we’re always here to help you. 

When it comes to fraud, what are customers responsible for, and what are banks responsible for?

There is a misconception that banks look at every check and payment that comes through, but that just isn’t possible. It’s the responsibility of the customer to make sure they’re monitoring their bank accounts to report suspicious activity. Victims of fraud may be able to get their money back if they report the fraud quickly. However, this may not be possible if they authorized the transaction in question. If they were scammed into taking action, they don’t have much recourse in the end.

Do fraudsters ever get caught and criminally charged?

I wish I could say yes. Most often, though, scams are committed by a large, organized criminal ring located outside of the area. If any bad actors are caught, they were likely a victim in the scenario as well. Often, it’s those people who are arrested and prosecuted, but rarely do the recruiters get caught.

This article appeared in the Q1 2025 issue of Bell’s AgViews newsletter.