Statistics recently gathered by Beazley Insurance indicate that in 2017 the average theft through fraudulent wiring instructions was $357,000. Some thefts were only a few thousand dollars; however, others were in the millions.
Fraudulent wire instructions have become a significant threat to the well-being of individuals and businesses. Even if you do not directly handle or wire funds, defrauded consumers and their attorneys may seek to involve all parties associated with the transaction.
What are you doing to prevent fraudulent wiring instructions from being followed?
Here are some risk management practices you might want to consider:
- Don’t rely on emails to receive wire instructions. It is recommended you implement procedures to call and verify email instructions that are received.
- If your only option is to email the wire instructions, you should first call to verify the account numbers. You should also know that talented fraudsters may be able to impersonate bank or other office personnel, so be wary.
- Make doing business with people you know a preference. While unrealistic for some, many manage their risk by predominantly dealing with attorneys and banks they know.
- Inform everyone involved in the transaction, as many may not be aware that fraudulent wire instructions are an issue. If they play any role in the transfer of their funds, be sure you have communicated clearly with them about this threat to their financial well-being.
Aggressively educate yourself…
Bear in mind that when fraudulent wire instructions are followed and money is lost, we all lose—even if the loss was not specifically the fault of you or your staff.
If you are concerned about having adequate protection from this type of exposure, contact one of our agents. Our proprietary E&O, Cyber, and Fidelity products provide you with some of the best protection available today.
Protecting Yourself Against Wire Fraud
Rich is most passionate about helping people understand the important benefits of working with an independent broker such as the Merriam Insurance Agency. It is his mission to ensure clients know where they can gain access to everything they would need, should the unthinkable happen.
When he's not working, Rich enjoy's spending time with his two teenage children and their golden retriever Alfred.
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