By his own admission, Tyson Littlejohn is a bit of a tech nerd.
“I can’t stand not knowing how something works,” Littlejohn said. “If something’s out there, I want to fully understand it.”
That curiosity brought Littlejohn, a civil contractor, to the Trilogy Hotel in downtown Huntsville for a fraud-awareness event hosted by Regions Bank. His goal: learn how to protect his business from ever-evolving fraud threats.
That’s exactly why Sean Kelly and his team of Regions bankers invited commercial and private wealth clients from across the Rocket City to an interactive lunch-and-learn.
“Huntsville continues to stand out as one of the most dynamic and fastest-growing economies in the country, and gatherings like this reflect the collaboration and forward thinking that fuel that success,” said Kelly, Huntsville market executive for Regions Bank.
“We’re here today because we all share a common threat – fraud – and we share a responsibility to help prevent it.”
Social Engineering is the Gateway
Fighting fraud begins with understanding how scammers gain access.
For 45 minutes, Jeff Taylor and Scott Augenbaum shared insights into the latest scam tactics affecting Americans. Taylor is head of commercial fraud forensics at Regions Bank. Augenbaum is a retired FBI special agent and published author who draws on 30 years of investigative experience.
Most fraud, Augenbaum said, starts the same way.
“The tool of choice for cybercriminals is social engineering — tricking you into doing something you normally wouldn’t do,” he said. “They do that by creating an emotional trigger that opens a door.”
The First Truth
When working with fraud victims, Augenbaum said several truths consistently emerge.
“The first truth is nobody ever expects to be a victim,” he said. “‘I’m just a small business.’ ‘I work in health care.’ ‘I’m an architect.’ ‘Who would target me?’
“I’m here to tell you cybercriminals don’t discriminate.”
Scammers cast a wide net.
“Your money is what they want,” Augenbaum said. “They want to get it out of your system – out of Regions. They can’t hack the bank, but they can hack you and your family.”
Your money is what they want. They want to get it out of your system – out of Regions. They can’t hack the bank, but they can hack you and your family.
Scott Augenbaum, retired FBI special agent
He shared the story of a non-Regions victim who lost $1.9 million in a cryptocurrency romance scam after being convinced to move funds from a bank account to a crypto platform.
“Once money leaves the security of your account through a wire transfer, ACH (Automated Clearing House) payment or crypto transaction, what are the chances of getting it back?” Augenbaum asked.
Slim to none.
“We do everything we can to recover the funds on your behalf,” Taylor said, “but unfortunately, it’s not always possible.”
That’s largely because most cybercriminals operate overseas.
A Global Problem
Augenbaum recently traveled to Asia on a U.S. State Department assignment to train law enforcement and banking professionals on combating organized scam operations run through call centers.
“Today, cybercrime is a $4.4 trillion global problem,” Augenbaum said, citing estimates from former FBI colleagues.
The actual impact, Taylor noted, is likely even higher because many crimes go unreported.
“One reason is embarrassment,” Taylor said. “Victims of romance scams, for example, may not want family members to know.”
Reporting fraud matters. Identifying scam tactics and the professionals behind them helps protect others.
“Are the (scammers) in Russia? West Africa? China? India? Or from the U.S.?” Taylor said. “Reporting gives federal and international law enforcement the information they need to work together to disrupt these crime rings.”
It’s a People Problem
“I’m going to share another truth,” Augenbaum said. “Ninety to 95 percent of the cases I see could have been prevented. We’re focusing on technology solutions to a people problem.”
Most fraud starts with a poor decision driven by emotion.
“Every case I’ve worked involves emotional triggers,” Augenbaum said. “Those triggers open doors.”
Using information from the dark web – names, phone numbers and personal details – criminals build familiarity and trust.
“This isn’t a bank issue or a money issue,” Augenbaum said. “It’s an access issue.”
Technology still plays a role. One basic but critical defense is multifactor authentication. Without it, accounts are vulnerable.
Once criminals gain access to email, they can steal passwords stored in browsers and move quickly.
Beware the Trusted Partner
Taylor said imposter scams involving “trusted partners” are increasingly common. Criminals spoof phone numbers and email addresses to pose as banks, vendors or colleagues.
“They create urgency and fear to get you to react,” Taylor said.
Red flags include requests for user IDs, passwords or one-time verification codes.
“Regions will never ask for the combination of your user ID and password,” Taylor said. “If anyone does, it’s a fraudulent call.”
The correct response: Hang up and call your bank using a number you know.
Business Email Compromise
Business email compromise remains one of the most damaging scams for companies.
In one example Taylor shared, criminals impersonate a vendor and send an invoice claiming payment details have changed. Accounts payable updates the information – unknowingly sending money to a fraudster.
Because of routine billing cycles, the fraud may go unnoticed for months, often uncovered only when the real vendor reports nonpayment.
“By that time, the money is gone,” Taylor said. “It’s likely overseas, making recovery extremely difficult.”
Stop, Call and Confirm
For all payment requests or changes in payment instructions, Taylor recommends a simple process: Stop. Call. Confirm.
Contact the requester using a verified phone number.
“It’s a five-minute call,” he said. “And it’s far easier than explaining a half-million-dollar loss.”
Protect Family: Create a Safe Word
Artificial intelligence now allows scammers to convincingly spoof voices and video appearances, including fake emergency calls to family members.
“You need to talk about this with your kids and your parents,” Augenbaum said. “One of the best steps is creating a family safe word.”
In an emergency, family members can verify legitimacy instantly — leaving scammers without leverage.
3 Industry Leading Practices
Taylor encouraged businesses to adopt three foundational safeguards:
- Guard your house: Use multifactor authentication and keep software and operating systems updated.
- Train employees: Teach staff how to recognize and respond to threats. Regions provides educational resources at regions.com.
- Create a plan: Know who to call and how to respond. If you carry cyber insurance, understand exactly what it covers.
Share What You’ve Learned
Frank Schriner, leader of Regions’ private wealth team in North Alabama, closed the session.
“We encourage you to share what you learned with colleagues, employees, friends and family,” Schriner said. “At Regions, we take your security seriously and remain committed to keeping you informed as fraud tactics continue to evolve.”
At Regions, we take your security seriously and remain committed to keeping you informed as fraud tactics continue to evolve.
Frank Schriner, leader of Regions’ private wealth team
Additional Resources from Regions.com
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The information presented is general in nature and should not be considered, legal, accounting or tax advice. Regions reminds its customers that they should be vigilant about fraud and security and that they are responsible for taking action to protect their computer systems. Fraud prevention requires a continuous review of your policies and practices, as the threat evolves daily. There is no guarantee that all fraudulent transactions will be prevented or that related financial losses will not occur. Visit regions.com/STOPFRAUD or speak with your Banker for further information on how you can help prevent fraud.