Common Wire Transfer Scams
1. Business Email Compromise (BEC)
A criminal impersonates an executive, business owner, vendor, attorney, or trusted partner and requests an urgent wire transfer.
These messages often appear legitimate and create pressure to act quickly without verification.
2. Vendor Payment Fraud
Fraudsters gain access to a vendor's email account or create a convincing lookalike email address. They notify your business that payment instructions have changed and ask that future payments be sent to a new account.
Without proper verification, legitimate payments can be redirected directly to criminals.
3. Real Estate and Closing Fraud
Homebuyers and businesses involved in real estate transactions may receive fraudulent wiring instructions that appear to come from a lender, title company, attorney, or closing agent.
Even a small change in wiring instructions should be independently verified before funds are sent.
4. Account Takeover
Cybercriminals obtain login credentials through phishing emails, malware, or weak passwords. Once inside a business banking platform or email account, they may initiate unauthorized wire transfers or change payment details.
5. Overpayment Fraud
A customer sends a payment that exceeds the amount owed and asks for the difference to be returned via wire transfer. Later, the original payment is discovered to be fraudulent, leaving the business responsible for the loss.
Red Flags to Watch For
Be cautious if you notice any of the following:
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Requests that create a sense of urgency.
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Pressure to bypass normal procedures.
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Unexpected changes to payment instructions.
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Requests to send funds to a new account.
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Emails containing unusual grammar, spelling errors, or formatting.
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Email addresses that closely resemble legitimate company domains.
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Requests to keep a transaction confidential.
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Unusual wire requests received outside normal business practices.
When in doubt, slow down and verify before sending funds.
How to Protect Your Business
Businesses can significantly reduce risk by implementing a few simple safeguards:
- Verify Payment Changes
Always confirm changes to payment instructions using a trusted phone number already on file. Never rely solely on information included in an email.
- Use Dual Approval Controls
Require multiple employees to approve outgoing wire transfers and changes to payment information.
- Enable Multifactor Authentication (MFA)
Use MFA on business email accounts, business banking platforms, and critical financial systems.
- Train Employees Regularly
Employees should know how to identify phishing emails, suspicious requests, and social engineering tactics.
- Secure Sensitive Information
Avoid sending account numbers, wire instructions, passwords, or other confidential information through unsecured email channels.
- Monitor Accounts Frequently
Review account activity regularly and immediately investigate unusual transactions.
What to Do If You Suspect Fraud
If you believe your business has been targeted or a fraudulent wire transfer has been sent:
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Contact Citizens Bank immediately.
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Notify any impacted vendors, customers, or business partners.
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Secure affected email accounts and reset passwords.
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Report the incident to law enforcement and appropriate fraud reporting agencies.
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Document all communications and transaction details.
Time is critical. The sooner fraud is reported, the better the chances of limiting losses.
Partner with Citizens Bank Treasury Management
Protecting your business requires more than awareness. Citizens Bank offers treasury management solutions designed to help businesses reduce risk while managing cash flow efficiently.
Our Treasury Management team can help you implement tools such as:
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Positive Pay
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ACH and wire transfer controls
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Dual approval workflows
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Account reconciliation services
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Fraud monitoring solutions
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Secure business digital banking tools
Whether you're managing a small business or a growing organization, we're here to help you safeguard your finances and stay one step ahead of fraudsters.
To learn more about Treasury Management services, contact Citizens Bank today.
