Protecting Yourself from PPP Loan Scams: What You Need to Know

At SIU Credit Union, your financial security is our top priority. We’ve seen a rise in sophisticated scams targeting individuals with Paycheck Protection Program (PPP) loans. Fraudsters are becoming increasingly creative, but by staying informed, you can protect yourself and your hard-earned money.

Common PPP Scam Tactics to Watch For

The landscape of financial fraud is constantly evolving. Here are some of the most common tactics scammers are using in 2025 and 2026:

• Impersonation & Caller ID Spoofing: Scammers may call, text, or email you, pretending to be from a trusted institution like your bank, the Small Business Administration (SBA), or even law enforcement. They often use “spoofing” technology to make their caller ID look legitimate and may even have accurate details about your loan (obtained from public records) to gain your trust.

• Credential Harvesting (OTPs): A common tactic involves fraudsters claiming there’s suspicious activity, an ACH error, or a “client credentials termination process” on your account. Their goal is to trick you into sharing your one-time passcodes (OTPs), which they can then use to gain access to your online banking and move funds.

• “Cash Bond” or Legal Threats: Some scammers use fear as a weapon, threatening immediate arrest, fines, or “contempt of court” for alleged issues with your loan forgiveness. They will demand a “cash bond” payment via cryptocurrency or wire transfer to avoid these fabricated legal actions.

• Phishing Links: Be wary of unsolicited emails or texts containing links to “verify” or “update” your account information. These links often lead to sophisticated phishing sites designed to steal your login credentials.

• Fake Forgiveness Services: Scammers may offer unsolicited, phony services claiming they can expedite the loan forgiveness process—for an upfront fee. Remember, legitimate loan forgiveness processes are handled through official channels and do not require upfront payments to third parties.

Key Red Flags of a Scam

Recognizing these red flags can help you spot a scam before it’s too late:

• Unsolicited Contact: Be suspicious of any unexpected calls or messages about your PPP loan, even if the caller ID looks real.

• Urgency & Pressure: Scammers create a false sense of urgency, using threats of immediate, dire consequences if you don’t act right away.

• Requests for Secrets: A legitimate financial institution or government agency will never ask for your username, password, or one-time passcodes (OTPs).

• Strange Payment Methods: Be extremely cautious if someone demands payment via gift cards, wire transfers, or cryptocurrency. These are preferred methods for scammers because they are difficult to trace and recover.

How to Protect Yourself

Empower yourself with these simple steps to stay safe:

• Do Not Trust Caller ID: Always assume that any incoming call regarding your loan could be a spoofed call.

• Verify Directly: If you receive a suspicious communication, do not use the contact information provided in the message. Instead, look up the official contact information for the institution (like SIU Credit Union or the SBA) and reach out to them directly.

• Never Share Your Credentials: Keep your login information and OTPs private. No legitimate organization will ever ask for them.

• Stay Informed: Regularly check for updates and alerts from trusted sources like SIU Credit Union and the SBA.

Remember, SIU Credit Union is here to help. If you suspect you’ve been targeted by a scam or have concerns about your account security, please contact us immediately. Your vigilance is your best defense against fraud.

To sign up for our weekly eNewsletter for more information on protecting yourself from fraud, visit https://siucu.org/security-center/.