ACH FRAUD: DON’T LET YOUR FINANCIAL FUTURE COME DOWN TO THE WIRE
by TODD S. ADAMS chief executive officer
Businesses and consumers beware: ACH and wire fraud is on the rise nationwide.
According to the FBI, business email compromise (BEC) including wire fraud is the most common cybercrime.
The Automated Clearing House (ACH) network is used for all kinds of fund transfer transactions from banks to various entities. Businesses depend on ACH payments for everything from direct deposit of paychecks to routine vendor payments.
Wire fraud is a favorite among cybercriminals because it’s relatively easy to attempt, instantaneous, and once it happens, it’s nearly impossible for the business or individual to reverse or recoup the loss. Sending a wire is like electronically sending cash.
How does the thief gain access and steal funds? The
ACH SAFETY CHECKLIST
✔ QUESTION: Be suspicious or cautious of any request for new payment information. Watch for red flags like wrong account numbers or slight differences in the return email address. Remember that banks and other legitimate entities NEVER request information or account confirmation via email.
✔ HOVER: Before clicking on any emailed link, hover the cursor over it so you can see the whole URL of the site you’ll be entering.
✔ VERIFY: Call the vendor to confirm that the request to change routing or account information is legitimate BEFORE sending funds. Use a phone number that you have on record, not one on a new invoice or an email someone sent you. Double-checking the request with another form of communication is a good safeguard.
✔ TRAIN: Help educate your employees so they won’t click on unknown links and emails or download attachments that may contain malware. Train them to identify cyber threats and how they may come into your business.
process usually starts with a “phishing” email that convinces the victim to change the routing or account number on an ACH payment. An attack can also be initiated by phone, text, or instant message. The email or message may appear to be routine and legitimate, but you’ll want to be very cautious whenever changes are requested.
A simple phone call is one of your best defenses. Call the vendor to verify that the request is legitimate before changing any routing or account information and sending funds.
Don’t use a phone number you received in a new invoice or email; use the number that you already have on record.
Wire transfers are generally a safe and efficient way to move funds and pay vendors - if you remain on guard against fraud. You don’t want to develop an ACHing pain in your finances.
QUICK TIP: Adams Alerts help you stay on top of all account activity. You may not notice a fraudulent withdrawal or recurring payment immediately, but Alerts can do the legwork and tip you off in real time. Call us or stop in with any questions about setting up various alerts in our mobile app.
SERVING NEBRASKA, COLORADO & KANSAS | 800.422.3488 | INFO@ABTBANK.COM
3rd Quarter, 2022
OUR TAILORED MORTGAGE SOLUTIONS
With interest rates for 30 year fixed-rate mortgages in the 7%+ range, many borrowers are reluctant to lock in long-term loans. They want to see what the future holds, but they have housing and financing needs today. That’s where Adams Bank & Trust can offer some alternatives. We offer a variety of in-house mortgage products to accommodate different needs. These include 5-year adjustable-rate mortgages, bridge loans, construction loans, lot loans, second mortgages, and home equity lines of credit.
Very few banks and mortgage lenders offer this wide of a range of loan products anymore. They’d rather stick to the easy scenarios. After all, in-house mortgages do involve more time, work, and risk for the bank. But when a particular loan is the best solution for the customer, that’s the loan we want to make.
Higher interest rates, skyrocketing home values, and a shortage of homes for sale in many markets have created some challenges for home buyers. However, Adams Bank & Trust has a seasoned
by STEVE KRAUSE president
mortgage team, and this isn’t our first rodeo. Our bankers have seen the ups and downs of various housing markets, and they have a number of creative mortgage solutions at their fingertips. As a growing commercial bank, it’s all part of the way we take care of customers over the long haul.
No matter the rate environment and overall economy, there are always opportunities – if your bank is willing to tailor financing to meet your objectives. Ask our mortgage team about the alternatives that can work for you.
CHARLIE WORTMAN evp - mortgage banking NMLS #568737
Charlie Wortman says Adams Bank & Trust’s in-house mortgage solutions put the customer’s needs in the center. “We want to help customers get into the homes they want to be in, on their time frames.” He adds, “As a hometown bank, we can be more flexible and creative in our financing than the bigger banks. For example, the self-employed can have more difficulty proving income, but we can look at that a little differently. And unlike Fannie Mae and Freddie Mac’s fixed-rate mortgages, we can have a more flexible approach to collateral.”
Lender expertise is another advantage. Wortman says, “Our team is very experienced, and our lenders tend to remain at the bank for a long time. So you’ll likely have the same contacts throughout
your loan period. You have a direct relationship with your local banker, not some big corporation. We’re going to walk you through any questions you have now and down the road.”
make sense if you know you won’t be in the home for a long period of time.”
Wortman says the 5-year adjustable-rate mortgage (ARM) is a good product if borrowers want to avoid some of the larger costs of a 30-year fixed rate mortgage, especially in the current rate environment. “Our current ARM rates are a little lower than the fixed-rate mortgages. You’ll be able to take advantage of rate decreases that may occur. An ARM can also
Not many institutions offer bridge loans, but they are a long-time specialty for Adams Bank & Trust. “This option is very popular with customers who don’t want to miss out on securing their dream home if their current home hasn’t sold yet,” Wortman says. “We’ll place liens on both homes, and the lien on the original home can be paid off or paid down when it sells. You’re not locked into long-term financing when you just need a short-term loan. You won’t need to rent temporary housing or store your belongings in the interim. And it helps you to be more competitive in the buying market if you don’t have to make a bid contingent upon your first house selling.”
The bottom line with all the bank’s in-house mortgage options? Wortman says, “We look for ways to make loans, not reasons to turn them down.”
adams bank & trust | PAGE 2
“The bottom line with all the bank’s in-house mortgage options? We look for ways to make loans, not reasons to turn them down.”
PAGE 3 | your foundation for financial success
NEBRASKA BRULE 308.287.2344 CHAPPELL 308.874.2800 GRANT 308.352.2114
IMPERIAL 308.882.4286 INDIANOLA 308.364.2215 LODGEPOLE 308.483.5211 MADRID 308.326.4223 NORTH PLATTE 308.532.5936
OGALLALA 308.284.4071 SUTHERLAND 308.386.4345
COLORADO BERTHOUD 970.532.1800 COLORADO SPRINGS 719.448.0707 FIRESTONE 303.833.3575
FORT COLLINS 970.667.4308 GREELEY 970.330.8018 LONGMONT 303.651.9053 STERLING 970.522.0698
KANSAS COLBY 785.460.7868
TOLL FREE 800.422.3488
CASH
Cash
GOVERNMENT AND AGENCY BONDS
Marketable investments in bonds and other securities of the U.S. Government and its agencies.
416,921,060
Funds loaned to other banks for daily cash needs and payable on demand. 0
FEDERAL FUNDS SOLD
LOANS AND LEASES
Total of all money loaned to customers for all types of loans, such as agriculture, commercial and consumer.
766,656,859
Book value (after depreciation) of buildings, computers, equipment, etc. 18,423,854
BUILDINGS, FURNITURE AND FIXTURES
OTHER ASSETS
Interest on loans earned but not collected, expenses that have been prepaid, etc. 16,359,836
TOTAL ASSETS 1,267,095,285
DEPOSITS
Money on deposit by customers of the bank in the form of checking accounts, savings accounts, and certificates of deposit.
OTHER LIABILITIES
Borrowings by the bank, interest on deposits that has accrued, payable at a future date, other expenses accrued but not yet paid, deferred taxes, etc.
1,070,174,256
68,575,803
Par value of the investment of the stockholders for the purchase of stock. 23,000,000
CAPITAL
SURPLUS
Additional money contributed by stockholders to provide extra financial strength. 17,000,000
UNDIVIDED PROFITS AND RESERVES
Bank earnings left in the bank to provide added strength to meet possible future losses on loans and to replace buildings and equipment as they wear out.
88,345,226
Total capital available for the safe operation of Adams Bank & Trust. 128,345,226
TOTAL CAPITAL ACCOUNTS
TOTAL LIABILITIES AND CAPITAL ASSETS 1,267,095,285
OUR LOCATIONS
& TRUST BALANCE
ABTBANK.COM ADAMS BANK
SHEET AS OF JUNE 30, 2022
in our vault, plus cash on demand from other banks where funds are deposited. $ 48,733,676
MODELING GOOD FINANCIAL BASICS FOR YOUNG ADULTS
“Tell me, I may forget; show me, I may remember; involve me, I will understand.” Ancient proverb
Sometimes it’s difficult to wrap our heads around how much the pace of change has accelerated in recent years, especially with digital technology in the financial arena.
Only a few decades ago, the possibility of blockchainbased digital assets like bitcoin would have seemed like science fiction. Recent cryptocurrency crashes are a perfect example of the risks involved in an evolving and yet to be fully understood technology. Some of the biggest cryptocurrency exchanges and lenders are now bankrupt, and billions of dollars in holdings have been reduced to pennies on the dollar.
Today’s young adults have grown up in a digitized world, but are they aware of some of the unique risks associated with digital investments? Early meteoric gains for some crypto investors inflamed imaginations in all age groups, but in any era, schemes to “get rich quick” generally produce far more losers than winners.
by JACOB HOVENDICK rjfs branch manager
in the future? No, but there is still so much that is unknown about them, and the regulatory environment is still playing catch-up. The old adage about not putting all your eggs in one basket continues to apply, as well.
The truth is, there are no shortcuts to building wealth and financial security. There are no substitutes for disciplined financial practices over time.
What are some of the best ways to support the next generation of savers and investors as they find their way in a changing landscape? Your adult children may have spread their wings and moved out of the home, but they can continue to benefit from mentorship and experience with basic financial principles.
Budgeting Basics
T here are no short cuts to building wealth and financial security. There are no substitutes for disciplined financial practices over time.
Does this mean digital products like cryptocurrencies and NFTs (non-fungible tokens) won’t have a place
Better money management always starts with a budget . Building the budgeting habit ideally starts before your children leave home. You can help them envision a monthly budget that includes necessities like rent, utilities, groceries, gas, and a phone plan - but also makes room for entertainment and going out to eat with friends. A budget or spending plan is the beginning
RAYMOND JAMES FINANCIAL SERVICES, INC. MEMBER FINRA/SIPC
Adams Bank & Trust is not a registered broker/dealer, and is independent of Raymond James Financial Services. Securities offered through Raymond James Financial Services, Inc., Member FINRA/SIPC, are not insured by bank insurance, the FDIC or other government agency, are not deposits or obligations of the bank, are not guaranteed by the bank, and are subject to risk, including the possible loss of principal. Investment Advisory Services offered through Raymond James Financial Services Advisors, Inc.
3rd Quarter, 2022
of learning to balance needs and wants, and funding long-term goals over time. This process can also serve as a backdrop for larger conversations about the value and role of money. Where does your family spend money and why? How can less expensive choices when you’re starting out enable you to save more money and have more freedom and flexibility in retirement?
Managing Debt Wisely
Debt can be a useful tool if it is approached wisely. One’s early twenties can be a time to begin building healthy credit. But it can also be a time of vulnerability to bad practices such as carrying high-interest credit card debt. Help your children learn how to monitor their credit scores and explain the connection between good scores and favorable interest rates for larger purchases like cars and homes down the road.
Building A Safety Net
Talk about the importance of regularly setting aside money into a safety net fund. Ideally, everyone should have enough money saved to cover at least 4-6 months of expenses in case of emergencies like job loss or illness.
Planning For The Future
Once their emergency fund is in place, young people can begin thinking about building a financial strategy for long-term, mediumterm, and short-term goals.
Describe how you’re reaching your retirement goals and how you arrived at your tolerance for risk. Talk to them about the benefits of compound interest when saving begins early. Discuss employer benefits like 401(k) or similar retirement plans and the value of taking advantage of available matches. If you feel comfortable discussing financial mistakes you’ve made along the way, that can be useful information, too. Some of our best lessons come from learning from mistakes.
Google is no substitute for professional advice. Trusted professionals can help everyone avoid emotional mistakes and navigate complex situations.
Building A Team
A big part of success over time is assembling a team of advisers that you can trust. You can introduce your children to the various advisers you use, and the roles they play. These may include:
• Banker
• Financial Adviser
• Attorney
• Accountant
• Insurance Agent
Whether your children use the same advisers as you or seek out their own, these professional relationships will prove invaluable as they save and invest for the future, pay taxes, acquire property, get married and start families, start businesses, secure legal documents, buy life insurance policies, inherit wealth, and experience other life milestones.
There may be a lot of information available at our fingertips, but Google is no substitute for professional advice. Trusted professionals can help everyone avoid emotional mistakes and navigate complex situations.
Learning From Your Children
Change in various areas will continue to be dramatic, and lessons can be passed up and down the generational spectrum. Your children likely have new knowledge and perspective to share, so it’s valuable to keep an open mind as ideas are held up to the light of day.
“Young people, you need the wisdom of age, just as some of us older ones need your enthusiasm for life.” — Ezra Taft Benson
“We cannot always build the future for our youth, but we can build our youth for the future.” — Franklin Delano Roosevelt
Opinions expressed are those of the author and are subject to change. This information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. This information is not intended as a solicitation. The material is general in nature. Investing involves risk; investors may incur a profit or loss regardless of the strategy or strategies employed. There is no assurance that any investment strategy will ultimately meet its objectives. Past performance may not be indicative of future results. Asset allocation and diversification do not guarantee a profit nor protect against a loss.
For assistance in reviewing or creating your investment plan, please call any Adams Bank & Trust office or call toll free at 800.422.3488 for an appointment with a Raymond James Investment Representative. Jacob Hovendick , RJFS Financial Advisor and Branch Manager Jan Acker, RJFS Financial Advisor 308.284.4071 | 315 N SPRUCE STREET, OGALLALA, NE 69153
