March 1 - 7 is National Consumer Protection Week, a nationwide initiative focused on fraud awareness and prevention sponsored by the Federal Trade Commission. 2026 is the 28th year of the FTC joining with partner organizations to amplify the importance of consumer protection.
During this time, I want to spotlight the growing threat of wire transfer scams and their increasing impact on our industry. Payments have always been my passion, and wires were among the first responsibilities I handled when I began my career in deposit operations over 15 years ago. During that time, I had the privilege of transforming the wire department, consolidating processing from four banks into one and establishing a dedicated wire team. Over the years, wire fraud has become increasingly advanced, requiring us to implement stronger controls and develop strategies to detect scams in progress.
Wire transfers are fast, efficient, and irrevocable, making them a prime target for fraudsters. As wire fraud schemes grow more sophisticated, it’s critical for financial institutions and their accountholders to stay informed and vigilant. This article will detail the most common scams out in the environment today and how institutions can stay ahead of the curve by recognizing red flags and implementing sound practices.
Common Wire Fraud Scams
Business Email Compromise (BEC)
Fraudsters impersonate executives or vendors via email, requesting urgent wire transfers to fraudulent accounts.
Impersonation of Financial Institutions
Fraudsters call or email pretending to be bank staff, requesting wire transfers.
Investment / Crypto Scams
Victim “investing” funds into a crypto account but is receiving funds from friends to invest. Funds come from other sources like Zelle, Cash App or even incoming wires.
Pet Scams
There are two common types of pet scams in the industry. The first involves an unbelievably low price for a specific breed, while the second offers the pet for free, requiring only payment for shipping. These scams are especially prevalent during the holiday season. Scammers typically provide only photos, often stolen from the internet, and refuse to share videos or live proof of the animal.
Real Estate Scams
Scammers gain access to an email account and pose as title companies or agents, redirecting closing funds to their own accounts.
Romance Scams
The victim connects with someone online or through a dating app and begins a romantic relationship. Over time, the supposed love interest starts requesting money for expenses such as travel or medical emergencies. They often provide excuses for why they cannot meet in person and typically share photos that are actually taken from the internet.
Tech Support Scams
Victim will receive a call stating their computer has a virus and needs to be fixed immediately. The scammer will request control of the computer and install malware to steal personal or financial information. Will often convince the victim that they need access to their online banking where once they have access, scammers often:
- Claim the victim owes a fee for services
- Pretend to refund money but “accidentally” send too much, then ask the victim to wire the difference back
- Use the victim’s banking credentials to initiate fraudulent wire transfers
Vehicle Scams
The victim reaches out to a seller through social media or an online advertisement. While the seller provides photos of the vehicle, the victim never sees the car in person. After payment is sent to finalize the purchase, the seller either cuts off all communication or continues to deceive the victim by claiming the vehicle is being prepared for shipment and delivery.
Red Flags
Wire fraud schemes often succeed because they exploit urgency, trust, and small oversights. Recognizing the early indicators can make the difference between preventing a loss and falling victim to a costly scam. Below are common red flags that should immediately raise concern and prompt further verification before proceeding with any wire transfer.
- Sudden changes in wire instructions
- Pressure to act quickly or secretly
- Email addresses that are slightly off
- Requests to wire funds to new or international accounts
- Unusual transaction patterns or amounts
- Urgent or last-minute requests
- Poor grammar or typos in instructions
- ·Address inconsistent with purpose of wire (for example, the creditor is a car lot, but address is a home residence)
Sound Practices for Prevention
Preventing wire fraud requires a proactive, layered approach. The most effective strategies combine robust internal controls, ongoing staff awareness & training, and accountholder education. Internal controls help ensure every transaction is verified and monitored, reducing opportunities for fraud. Staff awareness programs empower employees to recognize suspicious activity and follow escalation procedures. Finally, educating accountholders about common scams and safe practices strengthens the entire payment ecosystem, making fraudsters’ tactics less effective. The following best practices can help organizations proactively prevent and mitigate wire fraud risks.
Internal Controls
- Keep your wire policies and procedures up-to-date
- Document and review exceptions to standard procedures
- Verify wire instructions independently (ex. call known contacts)
- Place callbacks when applicable
- Use secure communication channels, avoid sending wire details via email
- Implement dual controls for initiating and approving wires
- Monitor account activity for anomalies and unusual behavior
- Set transaction limits and alerts for high-risk accounts
- Maintain a clear escalation process for suspected fraud
- Ask thorough questions to your accountholder on the purpose of the wire
Staff Awareness & Training
- Review wire procedures regularly with all relevant staff
- Train employees to recognize phishing and impersonation tactics
- Encourage reporting of suspicious requests or behavior promptly to your fraud and compliance teams
- Keep up with current fraud trends and scam alerts
Accountholder Education
- Educate regularly on wire fraud risk
- Inform about common wire scams
- Advise to verify instructions before sending funds
- Encourage calling and not accepting any updates via email
- Provide guidance on safe communication practices
- Share examples of red flags and how to respond
Wire Fraud Prevention Questions
Wire transfers are irrevocable, and once funds are sent, recovery options are extremely limited. That’s why it’s critical to pause and verify before processing any request. Implementing a series of targeted questions can help confirm legitimacy and protect accountholders from falling victim to fraud. Below are example questions you can incorporate into your fraud prevention process.
Questions
- What is the purpose of the wire?
- Are you making a purchase or sending money to a friend?
- How long have you known this person?
- How did you meet this person?
- Have you met this person face to face?
- Has anyone asked you to keep this a secret or lie to your family or friends?
- Were you told your computer has had a virus and it requires payment to be fixed?
- Were you asked to mail gift cards as payment in addition to sending the wire?
- How did you receive the wire instructions?
- Is someone threatening to call the police if you don’t wire the funds?
- Is there a sense of urgency, intimidation, or fear?
What to do if your accountholder is a victim of wire fraud?
- Submit a service message to the financial institution to which the wire was sent
- Follow up with that financial institution directly to speak with their wire or fraud departments
- Notify internal teams
- Notify law enforcement
- Report to the Internet Crime Complaint Center (IC3) at www.ic3.gov
- Iinitiate a Kill Chain for international wires over $50,000
- The Kill Chain for international wires, formally known as the Financial Fraud Kill Chain (FFKC), is a process developed by the FBI in partnership with FinCEN and global law enforcement to help recover funds from fraudulent international wire transfers.
Final Takeaway
Protecting your accountholders starts with awareness. Share these tips with your team today and make fraud prevention part of your daily routine. A few extra moments of due diligence can prevent significant financial loss and safeguard your organization’s reputation.