Consumers from different parts of the world lose billions of dollars yearly to fraudsters who make use of wire transfers to perform their fraudulent acts. Although these fraudsters make use of varying methods when attempting wire fraud, their goal is to divert a wire transfer to a fraudulent bank account by impersonating a trusted party involved in the transaction.
As the victim is approaching the concluding stages of a transaction and has reached the stage to send funds through wire transfer, they may not be skeptical and aware when they receive fake instructions from the fraudsters. These wiring instructions always appear genuine. This is because it is just the account number that differs from the original instructions.
These criminals possess an in-depth knowledge of any industry they wish to attack. They also have excellent social engineering skills, and they have several means to make timely and believable contact with the victim.
How do they gain knowledge of the victim they wish to attack? It begins with phishing. First, scammers trick their victims into giving up their email or other account credentials through phishing.
As soon as they gain access to someone’s email, all the parties involved in the transaction are in a risk of potential fraud. They obtain personal details of an impending transaction and the transfer of funds involved by monitoring real-time communications. With this, they can impersonate a trusted party involved in the transaction and scam someone by giving them fake writing that looks real.
Transactions that take long like that of real estate which lasts for about 42 days provide the fraudsters with ample time to learn how the parties communicate, the timing, and their responsibilities in connection with the targeted transaction. These scams are uniquely dangerous with the length of time the fraudsters have to come up with a very believable version of a party involved in the transaction.
Some Forms Of Wire Fraud To Keep An Eye On
1) Executive Expense
Executive Expense, also known as Business Executive Scam is a type of wire fraud that has been targeted at many businesses in recent months.
A fraudulent email that appears to be coming from the Company’s HR or IT departments is sent to the accounting departments notifying them that an outstanding payment is needed right away for an executive working off-site. A large amount is usually requested to a specified bank account. This often results in a massive loss for a company.
2) Client Over-payment
This type of wire fraud has been a significant target for companies that sell online products. The fraudster presents himself as a client with the intent of purchasing your product or service. However, when they present their payment via check, the amount is higher than what it should be, and so it looks like they overpaid. The “client” who is a scammer insists that it was an error and that his overpayment be refunded via a money transfer service.
The claimed payment and check are fake and usually result in a significant loss for the company.
3) Office Supply Over-payment
This is a form of wire fraud where you get a call from a salesperson claiming to be your current supplier. They offer a promotional price and claim that the price would increase soon. However, when you get your invoice, you will discover that the supplier is not the same, and you were charged 50% to 300% higher than normal pricing.
Conclusion
Wire fraud has been on the increase in recent years with many big companies, the prime target of these fraudulent acts. The fraudsters first trick the targeted victim into giving up their personal information, emails, and account information through phishing. Access to this information makes the target vulnerable to potential fraud. And with this information, they can impersonate a trusted party involved in the transaction.
