Wire transfer fraud poses significant financial dangers to businesses of all sizes, but small- and medium-sized businesses (SMBs) are uniquely vulnerable. Large organizations invest heavily in fortifying their digital and financial infrastructures, so cybercriminals have shifted their focus to smaller businesses and organizations with fewer security resources at their disposal.

Cybercriminals use various deceptive tactics to manipulate victims into transferring funds to fraudulent accounts. Wire transfer fraud attacks can be launched from anywhere around the globe and land right in your inbox—indeed, studies have shown that 91% of attacks are initiated via email. 

You can protect your business with vigilance, education, and the right tools. Here are five steps to help safeguard your organization from wire fraud attacks.

1. Be aware of the wire transfer fraud threat

Fraudulent wire transfer scams impact organizations of all types and sizes. It’s easy and inexpensive for cybercriminals to launch attacks against thousands of entities simultaneously via email. Their favorite target? Anyone of those thousands not anticipating them. 

Awareness is crucial. As cybercriminals evolve their tactics, be on the lookout for anything that doesn’t feel right, educate your employees, and instill procedures to keep your business safe.  

2. Require dual verification for every transfer information change

If an established contact requests a change in their payment information over email, always follow up in person, by fax, or by phone. Don’t use contact information sent in an email or webpage sent by the contact in question as these can be easily duped. Instead, rely on phone numbers and contact information you’ve previously used to connect with the payee. Also, always verify requests for transfer information changes over email seemingly from individuals inside your own organization—a common cybercriminal tactic is pretending to be a colleague through a fake account or by commandeering a legitimate internal account. Always follow up.

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If an established contact requests a change in their payment information over email, always follow up in person, by fax, or by phone.

3. Create multi-person processes to oversee payment requests

Involving multiple individuals in payments as a matter of procedure provides additional oversight and scrutiny. For example, designate one employee for receiving wire transfer requests, and another for authorizing payment. It may add an additional step, but will multiply your ability to prevent a crime. 

4. Review your insurance coverage

Studies have shown that most small businesses think they’re too small to be targeted when the opposite is true. As a result, only 26% of SMBs have coverage to protect them in case of a cyber incident. 

Cyber insurance is a must-have for businesses of all sizes. It’s less burdensome and covers more than most people think. You hope you’ll never have to use it, but just as if your business was hit by fire or earthquake, you’ll be thankful that coverage was there.

For those who are covered, most policies require verification of security best practices having been implemented before coverage can apply. Confirm you are adhering to your policy’s guidelines.

5. Activate additional protections

Almost all cyber attacks affecting SMBs can be prevented by providing the right tools and training to your employees. Upfort Shield includes a spectrum of protections including email and browser defenses to proactively identify and block scammers, employee training, and proactive monitoring of your entire infrastructure. Studies have shown that use of Upfort Shield is associated with a dramatic decrease in claims related to fraudulent wire transfers, ransomware, and other cyber attacks. 

Get started with Upfort Shield today

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