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3 common wire fraud scams

On Behalf of | Jun 3, 2024 | Fraud

Wire fraud scams are growing more and more sophisticated over time – but all of them involve schemes to steal money from the victims.

However, forewarned is forearmed. You have a better chance of avoiding wire fraud if you understand some of the most common types. These include:

1. Business email compromise

Business email compromise attacks occur when fraudsters spoof (or sometimes hack into) the email accounts of company executives or highly placed employees and send fake invoices or payment requests to the finance department. Usually, the requests seem urgent, but not out of line – which can fool a finance officer into releasing payment.

2. Phishing schemes

These rely on the recipient to be overly trusting. They look like emails from legitimate sources that trick the recipient into revealing sensitive information or making wire transfers. For example, it may ask the target of the fraud to verify personal information to unlock an account or receive a package, and many people fall for it.

3. Invoice scams

Some businesses have a lot of vendors, so their finance department employees may not be aware of each one – and they may pay invoices for small amounts without looking too closely before they do the wire transfer. This is particularly common when the invoices are for services or goods that the company regularly uses – although the invoices may also closely mimic a legitimate vendor with just a few minor details regarding the payments altered.

Many cases of fraud are variations on the same theme, but all of them can be very destructive to a company’s finances and operations. If your company has been victimized, find out more about how you can fight back.

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