What is EFT & Wire transfer fraud?

EFT and Wire transfer fraud occurs when company employees are deceived by fraudsters to wire money to a bank account controlled by scam artists.

Cybercriminals typically will use phishing emails to gain insight or access into their target's email account, monitor email correspondence for some time, mimic behaviours and leverage trusted relationships between individuals.  The fraudsters will use language that might be specific to the person or the company they’re targeting with invoices and emails often identical to a real one except for the banking details.    

 

Tips on how to prevent wire transfer fraud

Six basic tips that employees should follow to protect themselves:

1. Do not trust emails requesting wire transfers or changes to existing payment accounts.  Exercise caution even when a request comes from the email of an existing vendor or trusted contact.  Confirm email requests by phone or video in case their email has been compromised. Be wary of e-mail-only wire transfer requests and requests involving urgency.

2. Question by phone or video chat why a company is changing their bank payment details.  Do not reply by email.

3. Monitor your company bank accounts daily.

4. Double and triple-check the information included on a wire transfer. One typo could send the money to the wrong person or business.

5. Immediately contact the involved banking institution and local police if there is any suspicion of wire-transfer fraud.

6. Develop a policy and approval process for changing electronic payment accounts within your organization.   

 

Please also exercise caution and follow these same tips if your employees request changes to their payment accounts by email.  The employee's email could also have been compromised!

 

Free Microsoft Word Template:
Client Vendor - EFT Wire - Payment Change Request (37 downloads)

 

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