Bank wire fraud – How social engineering and technology perpetrate fraud losses

So, how do we, as financial institutions and concerned citizens, stop clients, businesses, friends, and family from becoming a victim?  

1. Educate yourself about imposter scams and the methods used to gain your information. We can no longer rely on bad grammar in an email, a phone call, or a text message that looks like it comes from our bank or credit union’s fraud department, tech support, or billing emergency communication. All these events can be manipulated into a scam and used as a catalyst to make you a victim.
2. Understand that scammers are professionals. There are no accidental targets. Fraudsters use the same sales and marketing techniques as legitimate businesses to research and target their victims. They make fake accounts and profiles and analyze people groups, current events, and regional characteristics to appear as legitimate as possible. Everything from a phony text message that is trying to confirm an address for a USPS delivery to a business email compromise that started as a request to send money on behalf of the CFO is all curated and targeted to their recipient. It only takes one employee clicking on a phishing email to introduce malware or ransomware that can create an entry point for the fraudster’s scheme.
3. Create and follow your internal processes for communications and security. The best defense is a good offense. Financial institutions should implement tools and protocols like dual control, transaction monitoring software, call-back numbers, and internal tracking or reporting methods to confirm the validity of a wire transaction. It only takes one human error for the entire chain to break down and potentially cause a loss. Ensure all employees are familiar with the processes and protocols and that they follow them every time. 
4. Spread the word. As a financial institution, you are responsible for educating your community and clients on financial patterns and bank wire fraud trends. A recent study by CertifIDon, noted real estate wire fraud identified 71% of consumers believe it is someone else’s responsibility to teach them about wire fraud. Financial literacy is key critical.