Podcast Summary
So Money with Farnoosh Torabi
Episode 1883: Fraud-Proof Your Money: The New Rules for Keeping Your Bank Accounts Safe
Date: September 24, 2025
Host: Farnoosh Torabi
Guest: Martha Underwood (Founder of Prism)
Episode Overview
In this timely episode, Farnoosh Torabi dives deep into the pressing issue of financial fraud, identity theft, and ways to safeguard your bank accounts as we approach peak fraud season—fall and the holidays. Farnoosh is joined by Martha Underwood, returning guest and founder of the digital legacy platform Prism, who brings frontline insights into current scam tactics and proactive steps individuals and families can take to secure their financial information and peace of mind.
Both personal narrative and expert analysis combine for an episode packed with practical advice, cautionary tales, and the psychological realities of today’s rapidly evolving fraud landscape.
Main Discussion Points & Insights
1. Why Now Is Peak Fraud Season
- Distraction and Opportunity: Fraudsters capitalize on busy holiday routines, increased transactions, and new accounts being opened.
- Emerging Scams: Sophisticated tactics are on the rise, including AI-generated phishing, IRS refund cons, fake PayPal micro-deposits, and voice cloning.
Quote
“People are being targeted through children, through your emails, through the breaches that you just need to be diligent. And I say we need to be our own archivists of our own data.”
— Martha Underwood [02:40]
2. Farnoosh’s Recent $12,000 Business Account Fraud (Personal Story)
- Farnoosh shares a two-part fraudulent withdrawal scenario:
- $5,000 disappeared via a fake check. The bank notified her, but it took days to reverse.
- A second check for $7,500 followed within 24 hours, prompting her to accept a full fraud restriction on the account—which locked all outgoing transactions while she transitioned to a new account.
- Emphasizes the challenge and emotional disruption, especially as a financial expert herself.
Quote
“Thousands of dollars disappearing overnight because someone got hold of my routing number. The bank caught it... but the disruption and the stress was real.”
— Farnoosh Torabi [03:44]
3. Fresh Scam Tactics to Watch
A. Micro-Deposit & PayPal Schemes
- Scammers send tiny deposits (e.g., 2 cents) under the guise of refunds, sweepstakes, or legitimate business.
- Accepting these can validate your account and expose banking details.
Quote
“There’s a scam right now with PayPal where you have companies saying, ‘Hey, accept this two cents,’ or acknowledge that I sent you this two cent… now they have your bank account information.”
— Martha Underwood [05:55]
B. Phishing Texts & Emails
- Scams now use highly convincing details like realistic URLs and authentic-looking sums.
- Farnoosh describes nearly falling for an IRS scam text that mimicked her expected tax refund.
C. Infected Attachments in 'Trusted' Invitations
- Martha recounts opening a party invite from a friend that was, in fact, malware (“partyinvite.exe”).
- Even small email discrepancies—like an oddly-sized letter—can signal trouble.
Memorable Moment
“I clicked on it and it downloaded a partyinvite.exe, which is an executable on my phone... I wiped my phone.”
— Martha Underwood [08:23]
4. Defensive Strategies for Individuals & Families
A. When Compromised, Act Fast:
- Delete suspicious downloads, clear trash folders, reset devices, and wipe browser histories—even if it means the inconvenience of reentering passwords [11:18].
B. Routine Vigilance:
- Regularly rotate debit cards (every couple of years) and, where possible, change account numbers—especially for longstanding accounts.
- Minimize sharing sensitive information (Social Security numbers, etc.).
- Use strong, unique passwords with password generators.
- Monitor all transactions, especially micro-charges or small probes on accounts and credit cards.
Quote
“We need to be our own archivists of our own data, knowing what our information is and rotating it as much as possible.”
— Martha Underwood [02:40/24:07]
C. Protecting Children Online
- Warn children against clicking unsolicited links in games or chat rooms; these are common infection vectors.
- Educate early: even young kids need to understand internet risks.
D. Responding to Phone/AI-Based Scams
- Have family “safe words” to verify calls for help.
- Be extremely cautious with requests for urgent action or money, even if caller information sounds familiar.
5. The Evolution of Fraud with AI
- Voice cloning is making traditional phone scams more effective, especially against elders.
- Scam sophistication means visuals and audio can no longer be trusted at face value—even legitimate-seeming websites or calls might be fake.
- Social media oversharing increases vulnerability: criminals easily scrape personal info for tailored attacks.
Quote
“When you can’t trust your eyes or your ears anymore because of AI... always assume that it might not be legit.”
— Martha Underwood [29:47]
6. The Psychology of Scams: Anyone Can Be a Victim
- Notable story: Financial columnist Charlotte Coles lost $50,000 to a phone scam that preyed on her parental instincts.
- Shame is unwarranted; high-pressure tactics and psychological manipulation can work on anyone.
7. Bank and Industry Response & Needed Improvements
- Bank Measures: Heavy investment in cyber-defense, multifactor authentication, biometric systems, and increased transaction reviews.
- Hold times and friction in certain processes (like changing account numbers) remain pain points for consumers.
- Virtual card numbers and more frequent “rotation” of credentials may become standard.
Quote
“There are millions of dollars being poured into that—multi-factor authentication, biometric authentication... robust fraud departments at banks.”
— Martha Underwood [35:36]
- Farnoosh’s wish: Enable easy, instant account number changes, just like with credit cards [38:01].
Notable Quotes & Memorable Moments
-
“[On scam texts] It wanted me to click on a link to provide some additional information to process the refund... I almost fell for it.”
— Farnoosh Torabi [07:05] -
“I typically assume that all of my information is on the dark web.”
— Martha Underwood [18:58] -
“If grandma or grandpa hears that grandchild or child is in danger, they're going to do whatever they need to do… Have a safe word.”
— Martha Underwood [27:07] -
“No one is safe from this… We have to be diligent in making sure that we are watching all of the transactions and interacting with trusted vendors.”
— Martha Underwood [33:56]
Actionable Safeguards
- Always double-check URLs, phone numbers, and sender info before responding or clicking.
- Utilize password managers & change passwords regularly.
- Limit dissemination of banking, social security, and other identifying details.
- Monitor all accounts and credit cards for suspicious charges, no matter how small.
- Educate and involve your children early about potential scams and safe online behavior.
- Pressure banks for easier processes regarding account changes and fraud resolution.
About Martha Underwood & PRISM [39:00]
- Prism is a platform for securely aggregating, storing, and sharing important financial accounts, assets, and personal documents, used by multiple banks and wealth advisors.
- Designed for emergency access and to better protect digital and financial legacies for families.
Timestamps to Key Segments
- 02:40 — Main fraud trends and vigilance advice
- 03:44 — Farnoosh’s business account fraud experience
- 05:55 — PayPal micro-deposit scam explained
- 08:23 — Advanced phishing: fake IRS refund text and malware invitations
- 14:56 — Why business accounts are prime targets
- 24:07 — Personal data hygiene: kids, password practice, vigilance
- 27:07 — AI-based voice scams and family safe words
- 29:47 — The emotional impact of scams
- 35:36 — Bank efforts and security investments
- 38:01 — System friction: why updating bank accounts should get easier
- 39:00 — Prism: a solution for tracking, protecting, and sharing important financial info
Closing Thought
This episode underscores a critical truth: fraud is constantly evolving. Diligence, skepticism, transparency, and proactive communication—within families and with financial institutions—are your best shields. As Farnoosh and Martha stress, staying ahead means educating yourself and your loved ones, keeping tight controls on personal data, and pushing for better protections from banks and tech partners.
Links & Further Reading:
- Charlotte Coles’ $50,000 scam story, as referenced [29:47] (see episode show notes for direct link)
- Learn more about Prism: getprism.com