Recent $3M Fraud Attempt Highlights Importance of Rigorous Verification

By Anna Aeschliman, American Funding Solutions

April 24, 2025 - American Funding Solutions (AFS) recently encountered a sophisticated fraud attempt that serves as a reminder for all industry professionals to remain vigilant and thorough in their due diligence processes.

 A prospective client approached AFS seeking a $3 million credit facility. The prospect was a legitimate digital media company with a live production on a major network’s online platform, validated by the presence of their content on the network’s site.

 As part of the standard verification process, AFS requested supporting documentation and contact information for a network employee who purportedly approved the invoice. The prospect provided an email address and phone number for this individual.

 During our verification, several red flags emerged: 

• The email address provided used a ".net" domain, while the official network’s website uses a ".tv" domain.

• The email lacked a standard signature line, which is unusual for professional correspondence.

• When AFS called the number provided, the person on the other end confidently posed as the network employee and verbally verified the invoice.

 Recognizing these inconsistencies, the AFS team conducted additional deep research to locate the real contact information for the network employee. Upon reaching out through official channels, we spoke directly with the actual employee, who confirmed she had no relationship with the prospect and had not approved any invoice.

This incident underscores the evolving tactics fraudsters use, including impersonation and the creation of convincing but fraudulent communication channels. It also highlights the necessity of independently verifying contact information and not relying solely on details provided by prospects.

Even within the framework of legitimate business relationships, fraud exists. In this situation, a fraud was embedded in a media production that is currently available and boasts millions of viewers.

Key Takeaways for Industry Professionals:

• Always cross-check email domains and look for inconsistencies in communication.

• Independently source and verify contact information for third-party approvals.

• Be wary of missing standard business elements, such as email signature lines.

• Trust your instincts—if something feels off, investigate further.

At AFS, we are committed to maintaining the highest standards of fraud prevention and encourage our peers to remain diligent in protecting their organizations and clients. This experience is a reminder that robust verification processes are essential to safeguarding against increasingly sophisticated fraud attempts.