How to Protect Your Business from Wire Transfer Scams
The FTC reported that between 2000 and 2024, reports of fraud involving businesses nearly tripled and losses grew from $90 million to $501 million. Last year’s AFP® Payments Fraud and Control Survey Report showed that 80% of organizations were victims of payment fraud attacks or attempts in 2023. And, wire transfers were the most vulnerable type of payment fraud after ACH transactions. So, how can you protect your business when conducting normal day-to-day operations?
Wire transfers are a fast and convenient way to send money. However, because wire transfers cannot be reversed, they can be a common payment method for scammers. At bankESB, we want to help protect you. Here’s some info on wire transfer scams and tips to prevent them.
Tips to prevent wire transfer scams
- Remember that sending a wire transfer is like sending cash. Once it’s gone, it’s almost impossible to get back.
- Verify that the wire request is legitimate. Pause and validate important information. Don’t allow yourself to be rushed.
- Confirm the intended recipient. Call only published phone numbers that can be found on official websites or that you know to be legitimate and be cautious when responding to unexpected emails.
- Require dual control of wire transfer payments. Each transaction should be drafted by one employee and approved by another (dual control).
- Take advantage of transaction limits. Establish limits for monetary transactions at maximum daily limits and maximum per transaction limits.
- Use separate accounts for electronic and paper transactions to simplify monitoring and tracking of any discrepancies.
bankESB is looking out for you.
We’re committed to keeping you informed about the latest scams and ways to protect you and your business from fraud. For more information on how we can support your business, visit our Cash Management webpage, stop by your nearest office, or call Customer Care at 855.527.4111. And, for valuable tips on fraud prevention, download our free brochure, Best Practices for Preventing Business Fraud.
