What to Do if Your Business Has Made a Fraudulent Wire Transfer

Wire fraud is a growing threat in the United States and abroad as many banks and businesses are relying on digital processes to conduct business. In fact, last year, the FBI issued a warning about a wide-ranging email scam under which bad actors were obtaining legitimate business email accounts to conduct wire transfer funds. Altogether, globally exposed losses hit more than $12 billion.

This is just one example of how banks and businesses are turning into victims when it comes to wire fraud. Fraudulent emails are sent out every day and bad actors are taking advantage of people’s naivete and trust. Here are some things to do after finding out your business has fallen victim to a fraudulent wire transfer.

Get Everything Gathered

The right authorities should be called upon to help track down the origin of the wire transfer fraud. The Bureau has a specific unit, the Internet Crime Complaint Center, that handles these issues and will require every small detail to make sure they can pinpoint the culprit(s) who conducted the fraud. After filing with the FBI, they will want to closely with you and gain as much information as they can.

Get Your Insurance Involved

Every business should be operating with the confidence that their insurance company is helping to back everything up. Having wire fraud coverage will help to keep clients financially protected when even the smallest fraudulent event takes place. Coverage for wire fraud can be added to a cyber insurance policy up to a certain amount.

For banks, they can invest in bank crime insurance to protect their end of the issue. Some clients who feel their bank should have done more to detect a fraudulent wire transfer could opt to sue that bank, which will be another reason why bank crime insurance is needed.

Get Your Lawyer on the Phone

Businesses large and small can all be targets of wire transfer fraud. No matter the size of the business, legal action will be required, so working things out with your lawyer is another step to solving the issue moving forward. Once the authorities and insurance are contacted, getting in touch with legal representation will be another important step.

Get a Fraud Freeze

Banks that were on the receiving end of processing the fraud should be contacted. Typically, fraud protection employees will be the first line of contact to get everything squared away. Clients can ask for a fraud freeze on any further transfers and then confirm that the freeze is in motion. Banks should have a time frame as to how long a freeze can be in place.


About Financial Guaranty Insurance Brokers

Since 1983, Financial Guaranty Insurance Brokers has distinguished itself as a provider of Professional Liability, Cyber Liability, and Crime insurance products for entities of all types. To receive timely, personalized service from a knowledgeable and experienced staff, call us today at (626) 793-3330 to speak with one of our professionals.