Businesses rely heavily on electronic transactions and wire transfers for most of their financial operations. While these methods are fast and convenient, they also have risks, especially in the form of wire fraud.
Your employees are your company’s first line of defense against fraud, so training them on what to look for is imperative.
What is wire fraud?
Wire fraud schemes aim to defraud individuals or organizations of money, property or other items of value via electronic communications or wire transfers. Cybercriminals use social engineering techniques such as phishing emails or phone calls in an attempt to trick employees into transferring funds. Once the money is transferred, it is extremely difficult to recover.
Training your employees to detect fraud can help protect your company from financial loss. Here are some training methods to consider:
- Provide your employees with awareness training about different types of fraud tactics. Provide real-life examples of what phishing emails and fraudulent requests may look like.
- Run simulated phishing exercises to test your employees’ responses. This not only reinforces the training but helps companies identify where they might be vulnerable.
- Scamming techniques evolve, so it’s crucial to have updated and periodic training.
- Have clear policies and procedures regarding wire transfers, such as verifying information and requiring management authorization, especially on large amounts.
You may want to consider collaborating with IT security experts for the initial training.
Losing money due to a fraudulent scheme is devastating for any business. If you have been a wire fraud victim, seeking guidance as soon as possible is essential. Quickly addressing the situation is your best chance for a positive outcome.