Search
 
Best Practices

Mitigating the Risk of Wire Fraud

Implementing these best practices will help companies avoid falling victim to wire payment fraud schemes.

X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
One of the most popular areas for payments fraud is wire transfers. That’s partly because criminals have limitless options for perpetrating wire fraud. There are many combinations of fraudulent approaches, and various points of compromise—such as malware transferred from a vendor to a customer, an email misleading an employee, or a call from the CEO requesting a transfer of funds—all can result in a wire initiation that transfers funds fraudulently to criminals.

The result can be hugely damaging to the company that the fraudster targets. One recent example occurred when a U.S.-based escrow firm transmitted fraudulent wire payments to accounts in China and Russia totaling more than $1 million between December 2012 and February 2013. Less than a third of the lost funds were recovered, and the escrow firm was forced out of business.

Even when a wire fraud scheme doesn’t result in significant monetary losses immediately, the ripple effects can be serious. Costs incurred after a fraudulent wire transfer can include investigation of the crime, remediation for the account holder who suffered the loss, and litigation. There are also intangible costs such as eroded brand and reputational value, which can result in customer attrition—customers or account holders may cut ties with companies they do not trust to adequately protect their assets.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.

Already have an account?

Trending Stories

 

Recommended Stories

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk
Live Chat

Copyright © 2022 ALM Media Properties, LLC. All Rights Reserved.