Earlier this year in a monthly all-hands-on-deck team meeting at Potomac Bank, we shared with every employee how much fraud cost us last year, how many attempts there were and how many reports about suspicious activity we filed. In addition, we dove into incidents in which we prevented a loss and how we did it, emphasizing what worked.
Fraud Loss as a Learning Opportunity
As we all know, when there are fraud losses, something didn’t go to plan. Fortunately, that becomes a learning opportunity. “Sometimes you win—sometimes you learn,” wrote John C. Maxwell in his book of the same name.
Every time my bank experiences fraud, we do an extensive review after the fact, asking the tough questions. Then, we explore ways we can catch and prevent that scam moving forward. Is there new technology we need? Should we evolve our procedures? How can we prepare better? It’s about turning that fraud experience on its head and utilizing information to enhance safety and security protocols.
Industry Collaboration and the ICBA Community
In conducting these fraud evaluations, we’ve also realized the power of communicating what we know. Because if we know about it, we can act against it. For example, in the fourth quarter of 2025, Potomac Bank experienced treasury check fraud. When it occurred, I was able to reach out to my peers at other local community banks, share what happened, offer photos of the perpetrators and provide the details that could help them enhance their own procedures. But we went one step further and worked together to partner with the FBI, ultimately resulting in the capture of the individuals responsible. It was information-sharing at its best.
In addition, resources like ICBA Community help us connect with bankers throughout the U.S. A couple of years ago, a fraudulent check came through on a customer’s account, and we needed to connect with other banks. I suggested we try ICBA Community as a resource and requested contacts at three large banks. Within minutes, we had them and were able to reach out and resolve the issue. That’s the power of this community of community bankers.
When it comes to fraud, “Sometimes you win—sometimes you learn.” If you have an opportunity to learn, share your experience. It can be embarrassing to admit your processes failed and your bank experienced a loss, but the benefits to the larger group of community bankers far outweigh the discomfort. The more we work together and share, the more we know and the better positioned we all will be to combat what emerges next.
Published by ICBA, May 1, 2026. Alice Frazier is President and CEO of Potomac Bank, and the current Chairman of ICBA.