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. In 2023, overall fraud losses grew in the United States, surpassing $12.5 billion¹.

So, how can you help 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:
   
   •  Business email compromise, in which scammers target businesses working with suppliers or businesses regularly performing wire transfer payments, compromise email accounts (or other forms of communication), to conduct unauthorized transfers of funds. 
   
   •  Phishing/spoofing, in which scammers, posing as legitimate institutions, send emails or text messages to acquire a company’s private information and financial details.
   
   •  Non-delivery/non-payment, in which scammers either accept payment without shipping items or payment is never rendered for items shipped. 

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 stay ahead of any potential threats. 
   
   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

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.

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.

 

Updated article resources

¹ 2023 Internet Crime Report Released. (2024, April 4). FBI.gov. https://www.ic3.gov/Media/PDF/AnnualReport/2023_IC3Report.pdf