Mind-bending globe-scale events always attract a lot of attention. Newsmakers, politicians and simple rubbernecks pay a lot of attention to such a loud events, and a recent Silicon Valley Bank meltdown is a perfect example. Scammers are no exception, as they should be peaky and roguish to success with their outlaw activities. But how can they play around with that topic to fool someone? Let’s check out together to be aware of possible SVB bankruptcy scams.
What happened?
The bankruptcy of Silicon Valley Bank happened on Friday 10, 2023, after a historically fast bank run. Over $40 billon funds were withdrawn in just a couple of days, leading the bank to failure. Such a fast cycle of events confused even experienced analysts – needless to say that ordinary folks and startup founders are completely disoriented. Eventually, this incident has prompted crooks to try their luck and try to cash in by any available method, and there are several reasons for that:
- Many companies and individuals working for companies will question how to pay emergency bills. Won’t there be any problems with payroll?
- How to contact SVB now, what website to use, and what to expect generally?
- Finally, this involves much money, which is bound to lead to many scams.
Unfortunately, scammers are sometimes savvier than you think. Therefore, if you work or are connected in any way to an SVB bank, you should keep your ears open; since, in most cases, this information is more or less publicly available, you will undoubtedly face targeted attacks from scammers. Moreover, you should expect phishing attacks not only via email but also via phone or SMS. Although some fraudulent emails may be indistinguishable from the real ones, Pseudo experts will offer legal services to affected companies, and people will be offered loans. In addition, some law firms now create unique pages to attract clients for possible litigation.
Email spam
Bankruptcy-related spam mailings may contain false information about the bank and its financial situation. In addition, such emails may contain offers to receive compensation. Usually, the user is asked to follow a link and enter their information. Often this link is fraudulent, and it is obvious. However, there is already a mass registration of new SVB-related domains. Unfortunately, not all are harmless – scammers register some specifically to deceive victims.
In addition to emails asking to click on a link, attackers can send emails supposedly from bank employees and ask users to provide personal information such as full name, residence address, etc. We recommend that you be very careful with such email and pay attention to the red flags: the sender’s address, the form of speech, and the style of the letter. For example, official organizations never address customers something like “dear user”. Instead, they use a first-name address.
Social media phishing
Social media is another vector that scammers will take advantage of. They can use social media such as Facebook, Twitter, or LinkedIn to send messages to bank customers, offering to help them save their money in bankruptcy. Scammers are more likely to create fake profiles and use bank-related logos to make their messages more convincing. So it’s essential to be careful not to trust people who ask for personal information on social media, especially concerning bankruptcy.
Phone calls phishing a.k.a Vishing
Vishing is a scam involving voice communication (a phone call). One common type of vishing is when scammers call the victim and introduce themselves as bank employees that they claim are about to go bankrupt. Since you don’t even have to make anything up here, since the bank is already bankrupt, this is almost a one hundred percent win for the scammers. For example, they can tell you you must transfer your money to another bank account to save it. The standard scheme of asking for information to transfer the money follows. It can lead to the theft of your personal bank account. We only recommend providing information once you are sure you are talking to real bank representatives. You can use the official phone number on the bank’s website to do this.
Race to register domains
We can already observe the registration of new domains that contain SVB. According to statistics, the number of registrations has increased several times over the past two days. Of course, not all of these are outright scams. Some are trying to capitalize on it, not even necessarily by scamming. Here are some of the registrations associated with Silicon Valley Bank:
- login-svb.com (parked)
- svbbailout.com
- svbclaim.com
- svbcertificates.com
- svblawsuit.com
- svbhelp.com
- svbcollapse.com
- svbdeposits.com
This is just a tiny part of it.
Possible SVB Scam Directions
It is also worth mentioning the regional banks affiliated with SVB, which had a stake in it. Since they had heavy relations with SVB, it is probable that SVB’s bankruptcy will affect them as well. First and foremost, First Republic Bank, Western Alliance Bancorporation, Metropolitan Bank Holding, and Signature Bank. It will be reasonably expected if scammers send emails to users saying, “Due to current circumstances, we recommend you protect your savings. Click on the link and update your payment information.” All this is done for one purpose – to get access to the victim’s accounts.
