Posted On: August 21, 2025 by Austin Bank in: fraud Fraud Alert
We have been made aware of scam attempts being perpetrated against businesses that obtained Paycheck Protection Program (PPP) loans during the COVID epidemic. Five years ago, these loans helped to cover critical expenses like payroll, rent, and utilities. At that time, banks warned Federal officials that publicly releasing the lists of PPP recipients (which included bank names, borrower details, and loan amounts) could be a treasure trove of data for criminals.
Now, that threat is playing out again. Business customers are being slammed with impersonation scams in which fraudsters - armed with data from the publicly available PPP data - are calling customers while spoofing the bank's name and phone number so it appears genuine on caller ID. They then convince customers to share one-time passwords (OTP) or access codes, often under the guise of "security verification". Victims are then taken to a fake website that looks identical to the bank's own. Once there, the scammers capture the users online banking credentials and the customer's account is theirs to plunder.
Transparency and accountability were the reasons for the government disclosing borrower data. However, despite the good intentions, this information is a 'hit list' for fraudsters. It's everything a scammer needs to sound credible, and appearing credible is key to the social engineering scheme. Criminals can drop the name of your loan officer, reference the exact amount of your PPP loan, and even claim to be 'following up' on pandemic-related relief. These methods can take advantage of even the most cautious business owner - especially when the caller ID looks real.
If you were the recipient of a PPP loan, please remain vigilant. Austin Bank will NEVER ask for one-time passwords or your log in credentials. NEVER give these to anyone.
For additional resources to help protect yourself against fraud, you can visit the Prevent Fraud page on our website.
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