How can you protect your company against wire fraud?

Wire transfers empower your business to send funds globally in real-time between financial institutions. However, as the use of wire transfers has grown in popularity, so has wire fraud. 

The federal crime, wire fraud, involves the use of a scheme to defraud another person or party through electronic communication. During 2015, a total of $220 million was lost to wire fraud in the United States. In 2019, the overall losses grew, surpassing $1.5 billion.¹

So, how can you protect your company from wire fraud and other types of cyberattack? Learn how in the third episode of our Sharing Knowledge Series or find three tips below to help.

1. Know the types of wire fraud

   
   Understanding the tactics by which wire fraud occurs can help you distinguish between fraudulent and valid wire requests as well as protect your company’s private information.
   
   The three most common types of wire fraud are:
   
   •  Telemarketing, in which scammers call the victim, make a false claim or promise, and attempt to retrieve a company’s private information. 
   
   •  Phishing, in which scammers, posing as legitimate institutions, send emails or text messages to acquire a company’s private information and financial details.
   
   •  Catfishing, in which scammers, using false identities, attempt to form a false business connection, then ask for money.

2. Be on the lookout for warning signs

   
   An overwhelming majority of wire fraud occurs through email phishing¹. Regardless of how a scheme occurs, a well-crafted message, even tailored to your company, may seem trustworthy. However, it’s important to take additional precautions to confirm the validity of any request.
   
   Pay close attention to any inconsistencies, like email addresses or domain names in writing. This is usually a red flag for potential scammers.
   
   Additionally, be skeptical of the transaction if the individual is creating a sense of urgency with their request. Often, scammers will create pressured situations to try and warrant your immediate action. This is a key indicator of potentially fraudulent activity.
   
   Should you discover any warning signs, be sure to act immediately and seek the counsel of a trusted advisor that is familiar with your accounts.

3. Sign up for security and account alerts

   
   To ensure fraudulent activity does not go undetected, many financial institutions offer security and account alerts to their customers. Account alerts are a convenient way to manage and protect your company’s money, and provide some peace of mind. In the event your financial institution notices unusual activity, they will contact you to ensure the transaction is valid before proceeding to move funds.
   
   By getting immediate notifications about important activities happening in your accounts, you can stay ahead of any potential threats to your company’s information or finances.
   
   If you’d like to learn how to set up free security and account alerts with Westfield Bank, click here.
   Your trusted partner in financial security
   
   If you think your company may have been a victim of wire fraud, please contact us immediately. For more information on how to report suspicious activity, recover from a fraud attack, or protect your company’s information, click here.
    

Working with a trusted partner that prioritizes your financial security establishes the foundation for preventing fraud. From debit card protections to treasury management business solutions, Westfield Bank provides comprehensive tools and services for enhanced security on all transactions.

Article resources

¹ 2019 Internet Crime Report Released. (2020, February 11). Fbi.Gov. https://www.fbi.gov/news/stories/2019-internet-crime-report-released-021120