Wire transfers are a fast and efficient way to move money between individuals and businesses. However, their speed is also their biggest risk: they are an immediate form of payment and a frequent target for fraud.
Once a scammer obtains the wired funds, the transaction is nearly impossible to reverse. This has led to U.S. businesses losing millions of dollars each year to wire fraud schemes, often involving hackers or impersonators requesting unauthorized transfers.
Did Your Wire Request Come Via Email?
When it comes to wires – verification is key. NEVER rely solely on email to confirm or initiate a wire transfer, even if the details look legitimate. When a person or company gives you new wire transfer instructions or requests a change to current processes, slow down and verbally verify the request by outbound calling the trusted number you have on file for your business partner or vendor. Incoming calls from a familiar phone number can potentially be spoofed, and responding to a suspicious email or calling the number in their signature could mean you’re responding directly to the fraudster.
Before submitting a wire transfer, it is crucial to check all of the information and details—even one small typo can accidentally send large amounts of money to the wrong recipient.
Be sure to check:
- Recipients and requester names
- Email address
- Account details
- Payment amount
- Phone number
Wire transfers are best for urgent, high-value, or international payments. But because they are fast and nearly irreversible, a business should determine if a wire is the most appropriate and secure option, especially when comparing it to alternatives like ACH transfers or checks with Positive Pay.
Pro Tip: Implement a dual control system when sending wire or ACH transfers—one employee to initiate a transfer and another employee to approve and release the funds.
Take Extra Caution:
- Never send funds to an individual or business you don't know personally or whose identity cannot be verified.
- Beware of schemes, such as lottery winnings, loved one's expenses, taxes owed to the IRS or an urgent matter from a friend abroad. Scammers often make requests sound urgent or may threaten you with legal action if the funds are not received.
- Scammers may request you deposit a check and send a portion back via wire transfer under the pretense that the extra money is commission or overpayment. These are often cases of fraud. Always verify with your recipient (by phone) to confirm the request.
- Business owners should educate employees who manage sensitive data and pay bills by making them aware of deceptive emails or phone calls.
If Fraud Does Occur:
- Contact your bank immediately.
- Alert your IT department, executives & legal counsel.
- Save all related communication and document the timeline of events for the investigation.
- Change passwords/credentials and work with IT to scan systems for malware or unauthorized access.
- File a police report with your local police department. If your incident is cybersecurity-related, file a complaint with the IC3 Crime Complaint Center at IC3.gov.
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