Advice
As a dedicated healthcare professional, your primary goal is to care for others—saving lives and improving patient outcomes. But while you’re focused on your patients, fraudsters are busy targeting your practice. With scams growing more sophisticated—thanks to the power of AI—your practice is at risk now more than ever. This newsletter is your essential resource to stay ahead of these threats. By understanding the latest fraud risks, staying vigilant, and utilizing proven protective tools, you can protect both your business and your patients from harm. Let’s ensure your practice remains a trusted healthcare provider, free from fraud.
Real Fraud Cases from Healthcare Practices: Lessons You Can’t Afford to Ignore
📞 Spoofing: The Call You Shouldn’t Have Trusted
A healthcare practice received a call from what appeared to be a legitimate bank Department number. The caller, using the name ‘Steven Evans,’ claimed the practice’s online banking was compromised.
The fraudster then:
- Asked for the client’s current login details for verification.
- Sent a text with temporary credentials, adding legitimacy.
- Instructed the client not to log in until the issue was ‘resolved.’
🔎 Outcome: With valid credentials in hand, the scammer initiated large ACH payments from the practice’s account, nearly causing a six-figure loss.
What You Can Do:
✅ Always verify suspicious calls by hanging up and directly calling your known bank contact or branch.
✅ Consider enabling multi-user approvals for large transactions.
Learn more about trending scams and fraud
✉️ Business Email Compromise (BEC): When Trusted Contacts Aren’t What They Seem
A medical office received an invoice from a vendor via email, followed by a second email with ‘updated payment instructions.’
- The office called the vendor using the number provided in the follow-up email.
- They were directed to wire the payment to a different bank account.
- The practice unknowingly sent $250,000 to the scammer’s account.
🔎 Outcome: Fortunately, quick action by the practice and the bank enabled the recovery of the funds—but not all victims are as lucky.
What You Can Do:
✅ Confirm any payment changes through known, trusted contact methods.
✅ Activate dual approval for wire transfers.
Learn more about identifying Phishing Scams
🔒 Outdated Signers: The Fraud Risk Hiding in Plain Sight
A healthcare business neglected to remove a former employee as an authorized signer. Over the next year, this individual exploited their lingering access, withdrawing over $100,000 without detection.
What You Can Do:
✅ Regularly review and update authorized account signers.
✅ Use automated account monitoring tools to flag suspicious transactions.
✅ Review your authorized signers with your banker often.
Learn about removing users from your Mobile Banking
💳 Embezzlement: When Familiar Faces Breach Your Trust
A medical office detected lower-than-expected balances. Upon closer review, they uncovered ongoing debit card activity for personal purchases by a current employee. Over the course of a year, nearly $50,000 was stolen.
What You Can Do:
✅ Perform regular account reviews.
✅ Implement spending limits and alerts on business debit cards.
How to protect your business debit card from misuse
🚀 AI-Powered Fraud: The New Frontier
Fraudsters are leveraging AI to scale their attacks. With AI-generated voice calls, realistic deepfake videos, and adaptive phishing emails, scams are becoming harder to detect. Even seasoned professionals are falling victim.
What You Can Do:
✅ Be skeptical of ‘urgent’ requests—even from familiar voices.
✅ Use biometric authentication and layered security measures like 2 Factor Authentications.
Learn about Cyber Insurance to protect your business
You’re Not Alone: Fraud Prevention Tools are at Your Fingertips
1st Source Bank provides access to enhanced fraud prevention solutions designed to safeguard your practice. Many of your peers already take advantage of these tools to protect their businesses. If you’re interested in activating any of these features or learning more, reach out to your preferred 1st Source banker.
What You Can Do:
✅ Positive Pay – Automatically flags suspicious checks and ACH transactions.
✅ Multi-factor Authentication – Adds an extra layer of security to your accounts.
✅ Dual Approval for Payments – Requires two users to approve high-risk transactions.
Explore your treasury service options
We’re committed to helping you stay ahead of evolving threats and keeping your practice secure for the long-term.