Our agency has seen a clear increase in the number of losses related to scams in the past two years.  Our Claims Corner team discusses real situations that have occurred to customers and ways you can help prevent your organization from suffering this kind of loss.

Also see:

Why People Fall for Scams: Understanding the Growing Trend


The Rise of Scams

In today’s digital age, falling victim to scams has become an unfortunate reality. Just a few years ago, it was rare to hear about someone being scammed. However, over the past year and a half, the frequency of scams has significantly increased. It has reached a point where our church alone encounters at least one to two scams every month. Scammers have become so persistent that they even target individuals through text messages, claiming that their Amazon or PayPal accounts have been locked.

Staying Alert and Vigilant

When faced with suspicious emails or messages, it is crucial to exercise caution. Refrain from clicking on any attachments or links without verifying their authenticity. Instead, take the time to call your bank or the person who supposedly sent the email. Initiate the phone call yourself to ensure you are speaking with the right person. Additionally, you can hover your mouse cursor over any links to see if the URL matches the name of the institution. If it displays something different or appears unusual, it’s best to avoid clicking on it.

Recognizing Red Flags

Scammers have become increasingly sophisticated, making it important to be aware of potential red flags. If you receive a phone call or message where the caller ID appears to be from a legitimate source, don’t automatically assume its authenticity. Scammers can manipulate caller IDs to display trusted bank or utility company names. Always validate any requests independently to avoid falling into their traps.

Churches as Common Targets

One of the most prevalent types of scams involves targeting churches. Scammers will send fraudulent emails to church secretaries or treasurers, claiming to make changes to their payroll accounts. It may take several payroll checks before the fraudulent activity is discovered. The scammers redirect the money to a different account, leaving the church at a loss. Unfortunately, once the money is gone, it is challenging to recover.

Elaborate Scams

Scammers are becoming more elaborate in their tactics. There have been instances where scammers impersonate utility companies, threatening to shut down services if immediate payments are not made. In some cases, scammers even go as far as calling individuals and using caller ID spoofing to make it appear as if the call is coming from a reputable bank. They convince the target to move funds into their personal accounts for protection. However, these actions are part of an elaborate scam, resulting in individuals losing their hard-earned money.

Insurance Coverage for Scams

When it comes to insurance coverage for scams, most carriers do not offer protection for voluntary money transfers. However, Brotherhood Mutual is one company that does provide coverage for such incidents. It is essential for organizations to understand their insurance policies and determine if they have adequate coverage. When evaluating coverage options, consider the amount of your payroll over a week’s period to ensure you are adequately protected.


Scams have become a common occurrence in today’s society, and it is crucial to remain vigilant. Always verify the authenticity of emails, messages, and phone calls before taking any action. Never assume that a communication is coming from the claimed source without proper confirmation. Furthermore, organizations should review their insurance policies to ensure they have the necessary coverage in the event of a scam. By staying alert and informed, we can protect ourselves and our communities from falling victim to scams.


Further Reading