Working with your Bank to Prevent Wire Fraud for Your Business

Scammers are busy – PwC’s Global Economic Crime and Fraud Survey 2022 found 51% of surveyed organizations say they experienced fraud in the past two years, the highest level in 20 years.

Wire fraud is a popular way to solicit funds from unsuspecting business owners because it quickly deposits money into the account accessible to the scammer. And once a wire fraud is initiated, there is no guarantee the money can be returned to the rightful owner.

Your best defense is recognizing the signs of wire fraud before you fall victim. Brenda Mackey, VP of Treasury Management Sales, works alongside the Rockland Trust Financial Crimes team to ensure customers are protected from wire fraud. She shared some steps you can take to safeguard your money. 

 

Your Bank is Here to Help

Picture this: You receive a text from what seems to be your bank with an urgent transfer request. The text says to speak with the bank immediately. Chances are you’re alarmed by this, and the anxiety might cause you to act without thinking.

But pause. Just for a moment.

“It's really important that businesses understand that when they receive a request like that, they should never just follow the instructions of the request,” Mackey explained. “It is critical that you call to confirm any request like this with a verified bank contact. You don't want to call the scammer based on the information you’ve received; that is exactly what the fraudsters want.”

The best way to validate a request is to reach out and connect with someone you personally know and trust. After all, how can you be sure you’re speaking with the right person if you’ve never met them?

“Have a go-to source you can turn to,” Mackey emphasized. “You can call them and explain the request from your bank. It may look legitimate to you, but checking with a contact you personally know is the best way to approach triple confirmation.”

The same goes for any request to move money to new accounts. This could take form as an email from a long-time vendor, or a letter in the mail from a government agency. Always validate with a known contact, or find a contact for the source of the request on their official website, never through a suspicious, or unexpected message.

 

Back to Basics: Preventative Measures Against Scams

 

The Red Flags

Managing finances can be stressful, and scammers take full advantage of this. Fraudsters make their requests sound urgent, which can inspire the need to react right away to address the problem.

Before acting prematurely, slow down. Keep your eye out for these three major red flags:

• The request: If the person or organization contacting you has asked you to transfer money to another bank account unprompted, this could be a sign of wire fraud. Your bank will never contact you demanding an immediate transfer to another bank or account, especially if this request is coming out of the blue.

• The language: Does the request have errors or misspelled words? Does the request contain inaccurate personal information? If so, this could be an indicator of an attempted wire fraud. Read carefully, and even if everything checks out, it’s best to still call to verify or call your bank for support.

• The mode of contact: Fraudsters get more creative every day, and are always looking for new ways to trick their victims. Be wary of requests coming through via internet pop-ups, spam mail, or text. Phone numbers and emails are relatively easy to acquire and scammers exploit this. It’s worth noting that you should never share any sensitive information over text or email, either.

Whether you spot one or all three of these red flags, it’s a good practice to call your bank to double check to ensure you’re taking necessary steps to protect yourself and your business.

And contacting your bank isn’t just for verification. Staying in constant communication with your bank can help alleviate some of the challenges that follow if you find yourself (and your business) falling victim to a wire fraud scam.

 

Prioritize Prevention

The harsh reality is that proactive prevention is the only way to ensure your money is safe from wire fraud.

Consider these precautionary measures to protect your finances from fraudsters:

• Know your banker: As we highlighted above, when a scammer attempts a wire fraud, they’ll likely claim a position of authority. They may insist the request is coming from your bank or a government agency, like the Internal Revenue Service (IRS). Your bank contact can confirm whether the request is legitimate, while simultaneously taking action on their end to protect your funds.
• Enact a maximum transfer amount: As a business – chances are, the scammers will request you transfer a larger sum of money. Mackey recommends putting a maximum transfer amount on your accounts so you are unable to complete the request in the first place. And if you’re ever in a situation where you need to make a transfer exceeding the maximum amount, your bank can aid the transaction. Bonus: By working closely with your bank, you can confirm the necessary validation steps are taken before moving forward with the large transfer.
• Educate your team: Scammers look to prey on all members of a business organization, not just owners and founders. Contact your bank’s treasury team for educational resources, and about fraud warning signs and best practices.

 

Protecting Your Funds from Wire Fraud

Protecting your organization’s finances goes beyond saving and budgeting. If you suspect you’ve been a victim of fraud, or want to expand your knowledge around fraud prevention, contact your bank for support.