Impostor scams cause ‘significant’ losses to victims

New tactics are emerging in sophisticated impostor scams, causing “significant financial losses” to those who fall victim to such scams, according to the Idaho Department of Finance.

“By understanding how they are evolving, consumers are better situated to recognize warning signs and avoid falling victim,” the Idaho Department of Finance said in a news release. 

Scammers often connect as friends, potential romantic partners or employers through dating apps, job websites and other social media platforms. After a level of trust is established, the scammer requests that the victim take some action. 

“Often, the action is framed as an opportunity, such as requesting access to a victim’s personal financial accounts to teach them how to invest in cryptocurrency,” a news release said. 

The scammer typically offers to send money to the victim as a gesture of goodwill, often under the guidance of helping the victim learn to invest in cryptocurrency or as an advanced payment for employment. 

To receive the funds, the scammer instructs the victim to link a bank account to one of the scammer’s accounts, providing the routing and account number details to facilitate the electronic transaction. The victim’s bank may then send small micro-deposits to verify the linked account. 

Once the accounts are linked, the victim initiates a payment request for the agreed-upon amount, typically a large lump sum payment. The funds may appear to be available, but they have not actually cleared. 

Shortly after sending the funds, the scammer asks for the payment back, claiming a mistake or urgent need. 

“What the recipient does not realize is that the scammer has also placed a stop payment on the original transfer — something they can do within two business days,” a news release said. 

By the time the funds are returned, the stop payment cancels the first deposit, leaving the account short both the original payment amount and the money that was sent back. The scammer benefits from both deposits, while the victim is liable for the negative balance and any fees. 

Idaho Department of Finance advises consumers to avoid linking accounts with anyone they don’t know well. 

“Never link a personal bank account with someone you have only met online,” a news release said.