Fraudulent phone calls and emails related to PPP loans have become a growing concern. These scams often involve false claims of legal action, creating a sense of urgency and fear to manipulate victims into providing personal information or making payments.

In a recent scam, the caller stated a warrant is issued for the business owner's arrest. The caller was aware the customer had utilized PPP loans through their bank.

This is not because of an information breach at banks. Criminals have collected PPP borrower information from public government sites and use that information to target individuals and businesses.

 

Recognize a scam

  • Unsolicited Contact – Unexpected calls, texts or emails from supposed government representatives without prior notice. Government agencies rarely initiate legal action through phone calls or emails.
  • Threatening Language – Claims of severe legal action, arrest or financial penalties.
  • Immediate Action Demands – Pressure to act quickly without time for verification.
  • Uncommon Payment Methods – Requests for payments via cryptocurrency, wire transfers, or gift cards.
  • Fake documents - While fake, documents may appear to be official subpoenas or court orders featuring legal jargon and seals.

 

Prevent PPP Loan Scam

  • Verify Contact Information – Always confirm details through official government sources, not the numbers or emails provided in a suspicious message.
  • Stay Calm & Analyze – Scammers rely on panic; take time to assess before responding. 
  • Trace Payment Methods – Legitimate authorities do not demand untraceable payments like cryptocurrency or gift cards.
  • Educate Employees – Train your staff to recognize scam tactics and report suspicious activity.
  • Report Scams – Contact your bank, local law enforcement, the FBI, or the Federal Trade Commission if you receive a fraudulent message.

 

By staying alert, verifying all claims, and refusing to give in to pressure tactics, you can protect yourself and your business from falling victim to these schemes.

If you have questions or want to learn more, contact your account officer or give us a call.