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Security Center

Fraud Protection 

Dealing with fraud can be both time consuming and frustrating, and no one is immune to the threat. Watermark Bank is committed to helping you recognize potential scams and providing resources for protecting your financial information and reducing the risk of fraud. 


 


Our Solutions

The following services are included at no additional charge.*
 
Positive Pay and Account Reconciliation:
 
By providing a list of distributed checks and pre-authorized ACH transactions, we are able to monitor and detect fraudulent items attempting to clear your account. If an item is not on the list, or the issue date or dollar amount are different, we flag it for your review.
ACH Filters and Blocks:
 
Manage transactions within time constraints and minimize the risk of unauthorized ACH transactions by automatically preventing them from posting to your account.
ACH and Wire Transfer Email Notifications:
 
The sophistication of Watermark Treasury Connect allows you to customize a multitude of alerts that will notify you when transfers are initiated by online users.

 

What to Do If You Suspect Fraud 

If you notice unauthorized activity or believe your account or financial information may have been compromised, contact Watermark Bank right away at (405) 810-6210.

When you contact us, please have the following information available, if applicable:

  • Your account number
  • Your debit card number
  • The amount of the unauthorized transaction
  • The date the activity occurred
Lost or Stolen Debit Cards:
During business hours, contact us at (405) 810-6210. You can also turn your debit card off through Card Management in Watermark Online or Mobile Banking.

To report a lost or stolen debit card outside of normal business hours, call (888) 297-3416.

 


Common Scams and Fraud

Businesses are frequent targets of fraud, and criminals continue to change how they attempt to gain access to financial information and funds. Understanding common fraud schemes and knowing what to watch for can help you identify suspicious activity before your business is impacted. 

In business, there’s no escaping risk, especially when the fraud comes from trusted sources. The good news is that you can mitigate the risk by staying informed and taking preemptive action. In this article, we’ll cover the types of fraud that small business owners should watch out for, plus smart tips for protecting your enterprise.
Three things to understand about fraud:
  • Fraud Can Happen From the Inside
    It only takes one bad actor to wreak havoc on your small business. Dishonest employees may misuse business credit cards or submit false or inflated reimbursement claims. Employees with access to your payroll system may also manipulate records. Remember, proprietary business and client information can be as valuable as tangible assets.
  • Fraud Can Come From Trusted Vendors
    Vendor relationships are essential to most small businesses, but without sufficient oversight, they can become a gateway to fraud. Examples include phony or duplicate invoices for goods you’ve already paid for, bid rigging and kickbacks to purchasing agents, and even check tampering and forgery.
  • Fraud Can Happen Through Social Media
    Social engineering occurs when a scammer uses a combination of social and technical skills to obtain money or information. It includes scam emails (phishing), phone calls (vishing), and text messages (smishing), all of which share the same basic goal: getting you to reveal sensitive data. 
Three ways your business can fight fraud:
  • Build a Culture of Accountability
    Security starts with a strong foundation of organizational policies and a culture that values transparency and accountability. No single employee should have unlimited access to accounting software, bank accounts, or HR records. Instead, set clear access boundaries, conduct regular security audits, and educate your team on how to respond to suspicious incidents.
  • Establish Strong Security Measures 
    This begins with regularly establishing strong passwords and multifactor authentication (using another form of ID verification). For enhanced protection, consider strong firewalls to monitor incoming and outgoing network traffic and defend against hackers, viruses, and other threats. And, of course, avoid accessing sensitive or proprietary information over public Wi-Fi networks.
  • Consider Security Insurance Coverage
    Decisions about insurance always involve weighing upfront costs against potential losses. As you consider your options, consider commercial crime coverage and cyber liability insurance for external threats, and fidelity bonds to protect against employee fraud.
Cyberattacks cause billions of dollars in business losses every year. Because smaller firms have limited resources, they’re especially vulnerable to these threats and the financial, reputational, and legal damage that can result. But even with a modest IT budget, you can take crucial steps to improve your business’s cybersecurity. Follow these best practices to help stave off security concerns.  

1.    Have Robust Security Software
Help protect your business’s systems and data with reputable antivirus, anti-malware, and firewall solutions. Enable automatic updates to ensure you have the latest protection. 
2.    Back Up Business Data 
Regularly back up your critical business data, ideally with a trusted cloud storage provider. Test backups periodically to ensure you can quickly recover from a data loss.
3.    Create a Companywide Password Policy  
Require employees to create complex passwords of at least 8 to 12 characters with a mix of uppercase and lowercase letters, numbers, and symbols. Passwords should be changed regularly.
4.    Enable Multifactor Authentication  
By implementing multifactor authentication, your business can help prevent unauthorized access to company devices and accounts by requiring a second verification factor to log in (such as a code sent to the user’s phone). 
5.    Secure Your Mobile Devices 
If you provide smartphones, tablets, or laptops to employees, ensure they’re secured with strong passwords and mobile device management (MDM) software. This software allows your company to remotely manage a device and wipe sensitive company data if lost or stolen.
6.    Address Wi-Fi Weaknesses 
Change the default password on your router and use strong encryption such as WPA3. Businesses open to the public – such as stores, restaurants, and medical practices – should create a separate guest network to keep visitors off their internal network.
7.    Limit Employee Access  
To minimize the risk of data breaches, follow the principle of least privilege: Only let employees access the data and systems they need to do their specific jobs. 
8.    Boost Employee Awareness   
Educate your team about common threats like phishing emails and business email compromise (BEC) schemes. Teach staff to spot suspicious emails, and reinforce the importance of verifying communications before complying with requests.

Strong cybersecurity measures are critical in today’s highly connected business world. If your budget allows, consider hiring an outside cybersecurity specialist to help you implement these measures effectively. Along with following these best practices, stay informed about the latest risks and conduct regular cybersecurity audits to ensure your small business is equipped to prevent or quickly recover from a cyber incident.
Fake Invoices and Unordered Merchandise 
Scammers create phony invoices that look like you ordered products or services for your business. They hope the person who pays your bills will assume the invoices are real and make the payment. Except it’s all fake. Or a scammer might call, claiming they want to “confirm” an existing order, “verify” an address, or offer a “free” catalog or sample. If you say yes to any of those, unordered merchandise will arrive at your doorstep — followed by high-pressure demands to pay for it. Don’t pay. And remember, if you receive merchandise you didn’t order, you have a legal right to keep it and use it for free. 
 
Online Listing and Advertising Scams 
Scammers try to fool you into paying for nonexistent advertising or a listing in a phony business directory. They may ask you to give your contact information for a “free” listing, or say the call is simply to “confirm” your information. Later, you’ll get a big bill, and the scammer may use details — or even a recording — of the earlier call to pressure you to pay. 
 
Tech Support Scams 
Tech support scams start with a call or an alarming pop-up message on your screen. The scammers pretend to be from a well-known tech company, telling you there is a problem with your computer’s security. Their goal is to get your money, access to your computer, or both. They may ask you to pay to fix a problem you don’t really have, enroll your business in a nonexistent or useless computer maintenance program, or sneak on your computer network to grab confidential data they can use to commit identity theft. 

Business Coaching Scams 
Some scammers sell bogus business coaching programs, often using fake testimonials, videos, seminar presentations, and telemarketing calls. They falsely promise amazing results if you pay for their exclusive “proven” system to succeed in business. They also may lure you in with low initial costs, only to ask for thousands of dollars later. In reality, the scammers leave budding entrepreneurs without the help they sought and with thousands of dollars of debt.
 
Changing Online Reviews 
Some scammers claim they can replace negative reviews of your product or service, add positive reviews, or boost your scores on ratings sites. However, posting fake reviews is illegal. FTC guidelines say endorsements — including reviews — must reflect the honest opinions and experiences of the endorser. 
 
Credit Card Processing and Equipment Leasing Scams 
Some scammers promise lower rates for processing credit card transactions, or better deals on equipment leasing. These scammers resort to fine print, half-truths, and flat-out lies to get a business owner’s signature on a contract. Some unscrupulous sales agents ask business owners to sign blank documents. (Don’t do it.) Others have been known to change terms after the fact. Ask the salesperson to give you copies of all documents right then and there. If they refuse or put you off with a promise to send them later, that could be a sign you’re dealing with a scammer. 
 
Fake Check Scams 
Some scammers give you what seems like a plausible reason to overpay you with a check. Then, they’ll ask you to send the extra money back to them or to someone else. But the check will be fake, even though it might show up as “cleared” in your account. By the time the bank discovers the check was bad, the scammer already has the money you sent them. You’ll be stuck repaying the bank. 
 
Other Questionable Practices
Sometimes scammers hide behind other questionable practices — like claiming to offer big-money gig economy jobs, but then failing to live up to their money-making promises. Or they may try to sell you unnecessary services with the false claim that you need to pay to improve your business’s credit report. And after natural disasters strike, unlicensed contractors and scammers may show up with false promises that they’ll get your business back up and running with quick repairs, clean-up, or debris removal that never happens. For more advice on protecting your organization from scams, visit ftc.gov/SmallBusiness. If you spot a scam, report it to ReportFraud.ftc.gov. Your report can help stop the scam.

Scammers pretend to be someone you know or trust and try to scare or rush you into paying or giving them information. For example:

  • Scammers say they’re calling from a utility company and your gas, electric, or water service is about to be interrupted because of a (fake) late bill.
  • Scammers say they’re a government agent and threaten to suspend your business licenses, fine you, or even sue you. They might say it’s because you owe taxes or need to renew a license or registration.
  • Some scammers convince you to buy workplace compliance posters that you can get for free from the U.S. Department of Labor.
  • Some scammers trick you into paying to apply for so-called business grants from government programs that turn out to be fake.
  • Scammers impersonate the U.S. Patent and Trademark Office and threaten that you’ll lose your trademark if you don’t pay a fee immediately. Other times, they lie and say you owe money for additional registration services.
  • Some scammers say they’re calling from a tech company, threatening that your business will lose its website URL if you don’t pay immediately.

Cyber scammers can trick employees into sending them money or giving up confidential or sensitive information like passwords or bank information. It often starts with a phishing email, social media contact, or a call that seems to come from a trusted source — for example, a supervisor or other senior employee — that creates urgency or fear. Other emails may look like routine password update requests or other automated messages, but are actually attempts to steal your information. Scammers also can use malware to lock organizations’ files and hold them for ransom. 

Fraudsters may pose as Watermark Bank or another financial institution in an attempt to gain access to your business accounts or sensitive information. They may manipulate caller ID so a call appears to come from a legitimate bank phone number and may know details about your business or employees to make the call seem credible. A fraudster may claim there is suspicious activity on your account and pressure you to take immediate action. They may ask you to move funds, provide login information or share a one-time passcode or multifactor authentication code.If you receive an unexpected call claiming to be from Watermark, do not rely on caller ID to verify who is calling. Hang up and contact Watermark directly using a number you know and trust. 
Remember: 
  • Never share your online banking password, PIN or authentication codes with an unexpected caller.
  • Be suspicious of anyone pressuring you to move funds immediately to “protect” your money.
  • Never move funds to a new account at another financial institution at the direction of an unexpected caller claiming to be from your bank.
  • When in doubt, end the call and contact Watermark directly.

Protecting your account starts with understanding how account takeover fraud occurs—and knowing what to watch for. Fraudsters continue to use increasingly sophisticated tactics to gain access to personal and business accounts. These attempts often involve impersonating trusted sources and creating urgency to prompt action.

What Account Takeover Looks Like

Fraudsters don’t always present themselves the same way. In some cases, they may claim to be from a bank fraud department. In others, the message may appear as:

  • A payment alert
  • A verification request
  • A general security or account check

The common thread is urgency—encouraging you to share information quickly without time to verify.

How It Happens

Fraudsters may contact you by phone, text, or email and reference suspicious or unauthorized activity. They often sound professional and may use spoofed phone numbers or publicly available information to appear legitimate.The goal is to obtain login credentials or one‑time passcodes. If a one‑time passcode is shared, fraudsters can gain immediate access to online banking accounts, which may result in account takeover and unauthorized transactions.

How to Stay Safe

  • A few important reminders can help protect your account:
  • Watermark Bank will never call or text to request account credentials, passwords, PINs, one‑time passcodes (OTP), or multifactor authentication codes.
  • Caller ID, email addresses, and message formatting can be spoofed.

  • Be cautious of messages that pressure you to act quickly or ask you to “confirm” activity. 

If you receive an unexpected call, text, or message claiming to be from Watermark:
  • Do not share any information.
  • End the interaction.
  • Contact us directly using verified contact information.

Taking a moment to pause and verify can help prevent unauthorized access.

Additional Resources

For more information on recognizing and avoiding scams, visit the Federal Trade Commission’s resource:

https://consumer.ftc.gov/articles/how-avoid-scam 

For business owners looking for more in‑depth guidance, this resource outlines practical steps to help protect your organization from common cyber and payment‑related threats. 

Cybersecurity Strategies for Business

Additional resources are available to help your business prevent, recognize and report fraud.

Business Email Compromise
Establish internal procedures for verifying payment requests and changes to payment instructions, and make sure employees know how to recognize and report suspicious requests.

Watch the EPCOR Business Email Compromise Video

Identity Theft
Find information from the Federal Trade Commission about recognizing, reporting and recovering from identity theft.

FTC Identity Theft Resources

Internet Crime
Report suspected internet-enabled fraud or cybercrime through the FBI's Internet Crime Complaint Center (IC3).

FBI Internet Crime Complaint Center

Ransomware
Review FinCEN information and guidance related to ransomware and associated financial activity.

FinCEN Advisory on Ransomware