At Froehling Anderson, our Minneapolis and St. Cloud based CPAs help individuals and businesses safeguard their financial data through strong internal controls, education, and fraud-risk assessments.

Common Fraud Schemes to Watch For

Fraudsters often impersonate trusted institutions such as banks, government agencies, CEOs, or vendors. Recent trends show an increase in bank impersonation scams, where scammers call pretending to be from your financial institution’s fraud department.

  • For individuals: Scammers may claim to be your bank and request fund transfers or account details.
  • For businesses: Fraudsters might call a company, pretending to verify ACH transactions or equipment information. They often try to gather details about company systems or send suspicious SMS links. They may also try to impersonate the CEO or other internal leadership.

Awareness of these schemes is the first step toward preventing them.

Recognizing the Red Flags

Fraud attempts often come with subtle warning signs:

  • Poor audio quality or an echoey phone line.
  • Calls or messages appearing to come from internal phone numbers.
  • Requests for authorizations, text confirmations, or account details that legitimate contacts already have.

Building a personal relationship with your banker helps you recognize when communication seems out of character. Typically, your known banker will contact your established point of contact, not a random employee.

Preventative Measures for Individuals and Businesses

Good financial habits and strong internal controls are your best defense against fraud:

For Individuals

  • Monitor your bank accounts regularly and question unfamiliar transactions.
  • Contact your bank’s fraud department immediately if something seems off.
  • Avoid saving credit card information in browsers or online stores.
  • Use Face ID or two-factor authentication for extra protection.

For Businesses

  • Maintain a trusted relationship with your bank.
  • Report any suspicious activity to leadership immediately.
  • Never share account details or device information over the phone.
  • Implement multi-factor authentication (MFA) and positive pay systems to protect against unauthorized transactions.
  • Review and update your fraud policies and risk management procedures regularly.

Fraud risk assessments shouldn’t wait for a problem—they should be part of your annual review or SWOT analysis. This process evaluates financial risks and keeps you proactive rather than reactive.

Responding Quickly to Suspected Fraud

If you suspect fraud:

  1. Call your bank or credit-card company immediately.
  2. Lock or freeze your account to stop further activity.
  3. Document all details—dates, names, and communications—to support an investigation.

Avoid making transfers, sharing additional information, or deleting messages before your financial institution or CPA can review them.

How Your CPA Can Help You

A trusted CPA is more than an advisor—they’re an ally.

  • For individuals: Your CPA can help review bank statements and spending patterns to identify unusual activity early.
  • For businesses: Your CPA can review cash-flow procedures, internal controls, and fraud-prevention policies to help your team prevent, detect, and correct risks.
  • At Froehling Anderson: Our accountants work closely with clients to strengthen internal controls, implement approval processes, regularly monitor and audit, and conduct periodic financial health reviews as requested/needed.

Discuss your internal controls with your CPA regularly. Proactive communication can prevent issues before they escalate—and when something new arises, your CPA likely has seen it before and can guide you through the right steps.

Looking Ahead: Staying Vigilant in a Digital World

As technology advances, so do scammers. Artificial intelligence and deepfakes make it easier than ever to impersonate trusted sources. The best defense? A healthy dose of skepticism.

The first step to building your fraud-awareness is to recognize that no one is immune—whether you’re an individual or a business owner. Use cybersecurity tools, educate yourself on best practices, and partner with your CPA to establish strong financial safeguards.

Partner with Froehling Anderson

At Froehling Anderson, we help individuals and businesses protect their financial well-being through risk assessments, accounting best practices, and fraud-prevention strategies.

If you have questions about your internal controls or want to learn more about preventing financial fraud, contact our team of experts today!

Interviews with Dale Pust, Nhan Tran, and Katie Buchanan were conducted to provide original thought leadership on the subject.