Wire transfers are often employed in real estate acquisitions, substantial business dealings, and international fund transfers to ensure swift money movement. However, alongside the growing prevalence of wire transfers, the unfortunate rise in wire fraud has also become more apparent.
Wire fraud is theft through the electronic transfer of funds into fraudulent accounts. Scammers use many different methods to carry out wire fraud, including social engineering, phishing, hacking, CEO fraud and business email compromise (BEC). Each of these forms of manipulation trick individuals into divulging private details or complying with the theft.
Understanding the different strategies scammers use is the first step in outsmarting them. Here are more ways to protect yourself and your company from wire fraud.
- Protect your email accounts from hackers. Do not open suspicious links or attachments.
- Verify wire transfer requests and instructions over the phone or in person — especially with new vendors or updates with existing vendors.
- Do not call a number provided in the email request for a wire transfer. Instead, use the phone number you have on file for the person making the request.
- Limit and train the employees who have the authority to conduct wire transfers.
- Add cybersecurity fraud coverage to your business insurance policy
- Implement a company-wide cybersecurity policy.
- Beware of urgent, unusual or last-minute wire transfer requests.
- Regularly review your account statements for any unauthorized or suspicious activity.
F&M Bank remains committed to your financial security. Remember, your vigilance and awareness are key in preventing wire fraud. By implementing these preventive measures and staying informed, we can help keep your finances safe. If you have any questions or think you may be a victim of wire fraud, contact us right away.