Wire Fraud Protection

Wire fraud refers to the criminal act or attempt to commit fraud with the aid of some type of electronic communication – typically through email or phone. Particularly attractive to fraudsters, wire fraud can be done quickly, and the payment is often final, meaning that fraudulently wired funds are almost impossible to recover once initiated. In the convenience of today’s digital age, wire fraud has quickly become a global epidemic.

As with all types of fraud, one of the best ways to protect yourself against wire fraud is to learn the telltale signs. Many wire fraud schemes begin with an email from a fraudster posing as a trusted or familiar person or entity. This may include a reputable business vendor, a government agency, or even leadership within your company or organization. The phony email appears to be from one of these contacts and includes a time-sensitive request for funds with specific directions on how to complete the transaction. The request will often be marked as urgent in hopes that it will be acted upon quickly without further inspection or questioning by the unsuspecting recipient. 

Here’s a more detailed example: you receive an email from a familiar vendor regarding an open payment. While you typically pay this vendor by check, the email requests the immediate electronic wiring of funds to an account. In many cases like this, the impersonation of the vendor seems real: the email address looks similar, and the electronic signature includes the company’s logo.

In this scenario, the first step would be to verify the email address of the vendor to be sure it matches exactly with the contact you have on file. Often a similar, but not exact, email address is used by the fraudster impersonating the vendor.

Here’s an example:
Real Email Address: John.Doe@JDTreeServices.com
Fake Email Adress: John.Doe@TreeServices.com

Even if the email address matches perfectly, it is wise to call the vendor and confirm the request, as hackers may be sending fraudulent emails directly from the vendor’s account. While the phone number may be listed in the email signature, it is best to call the vendor using a number you have used in the past, in case the contact information also has been compromised.

Many companies fall victim to this type of wire fraud scam, called business email compromise, with the FBI reporting attempted and actual losses of more than one billion dollars globally. It is critically important to take steps to verify payment information and requests for wired funds, even if you are familiar with the vendor or it seems to be from an “official” government agency.

The TowneBank Treasury Services Team can help you and your business implement a fraud prevention strategy to reduce the risks of various types of unauthorized payments. With Business Online Banking services, you can easily launch robust fraud protection services that help you streamline and monitor transactions.