Fraud Losses Top $107 Million as Imposter Scams Surge Across Wisconsin

Fraud attempts are no longer confined to clumsily-written messages or frantic pleas from celebrities supposedly stranded overseas. With the increasing accessibly and sophistication of artificial intelligence, bad actors can replicate the professional language of a trusted business, or the personal, desperate tone of a family member in danger, making scams difficult to detect to even the most discernable eye. According to the Federal Trade Commission, consumers and businesses in Wisconsin have lost more than $107 million to fraud year-to-date, including $32.8 million in losses during the third quarter alone. 

The Wisconsin Bankers Association (WBA) is committed to warning consumers and businesses about the sharp increase in imposter scams — schemes in which criminals pose as government organizations, the bank, or family members to pressure victims to send money or share personal information such as passwords, social security numbers, or bank account information.  

“These scams are purposefully urgent and frightening,” explained Rose Oswald Poels, WBA president and CEO. “Scammers count on panic and confusion to get people to act quickly. Once the money is gone, it is often impossible to recover.” 

Recent cases across Wisconsin illustrate the severity of the issue. Pat Snyder, chairman of the Speaker’s Task Force on Elder Services and legislator for Wisconsin’s 85th Assembly District, reported that a resident lost more than $140,000 after being pressured into withdrawing funds under a false legal threat. In another instance, an individual withdrew $5,000 and deposited it into a crypto kiosk, all while they received instructions from the scammer over the phone. In both cases, the losses were irreversible. 

Bankers across the state report that many victims realize they have been scammed within 24 hours and often return to their bank devastated and hoping the transaction can be reversed.  

“Fraudsters depend on speed,” said Ken Schweiger, SVP/COO at Community First Bank and chair of WBA’s financial crimes committee. “They pressure victims to act immediately so there’s no time to think or ask for help. If we can slow things down — even briefly — many scams can be stopped before the damage is done.” 

Fraudsters often pedal startling narratives, such as: 

• Bank or Utility Spoofing: Messages that appear to come from a bank, electric company, or phone provider asking customers to “verify” account information or make an immediate payment. In these instances, caller ID looks like it is your bank calling when, in fact, it is a scammer. 

• Government Impersonation: Texts or calls claiming to be from the IRS, Social Security Administration, or Wisconsin Department of Transportation, warning of unpaid taxes, missed jury duty, or toll violations and threatening arrest if payment is not made immediately. 

• Grandparent Scam: A caller pretends to be a grandchild claiming to be arrested, injured, or in trouble and urgently needing money. The fraudster will often encourage victims to keep it a secret or “not tell Mom and Dad.” 

• Romance Scam: Scammers that spend weeks or months forming trusted emotional relationships with people online, eventually asking for money to pay for emergency medical bills or to cover travel expenses. 

The key tactics that power these narratives make them appear legitimate and take advantage of social behaviors. Some examples include: 

• Authority Impersonation: Posing as police, IRS, bank employees, tech support, or trusted family members. 

• Fear and Emotion: Threatening arrest, financial ruin, or exploiting familial and romantic relationships. 

• Time Pressure: Creating a sense of urgency or “act now” or else disaster or harm will occur. 

• Unusual Payment Methods: Requesting deposits into crypto ATMs, gift cards, or wire transfers to make funds untraceable. 

WBA encourages all Wisconsinites to remain vigilant, and remember: 

• Stop if you feel rushed. Urgency is one of the strongest indicators of a scam. 

• Never open links, attachments, or log into a website because someone tells you to. Banks will never ask for your account information, passwords or credentials. 

• Never move money because someone tells you to. Be especially cautious if asked to use wire transfers, gift cards, payment apps, or cryptocurrency. 

• Hang up and verify independently. Legitimate organizations will not threaten arrest or demand immediate payment. 

• Call your bank or a trusted person. A second opinion can prevent irreversible loss. 

• Identify warning signs. Requests for secrecy, pressure to act quickly, or instructions to avoid speaking with your bank are suspicious. 

WBA works closely with policymakers to support fraud prevention efforts and education that empower financial institutions to intervene when odd or unusual activity occurs. 

“Banks are often the last line of defense,” Oswald Poels said. “If a banker asks questions or expresses concerns, it’s because they want to protect you.” 

Consumers are encouraged to report suspected fraud to their bank and the Federal Trade Commission. For more information on fraud prevention for bank staff and customers, visit https://www.wisbank.com/resources/consumer-resources/.