Wire Transfer Email Scams

Compromised business emails are increasingly widespread, especially wire transfer scams.  These email scams can target any size company and there are many variations.  Linked below are a two articles from reputable sources on these types of email scams and information on how to prevent becoming a victim.  

FTC Warns - CEO imposter scams: Is the boss for real?

Business E-mail Account Compromise - The 5 Billion Dollar Scam

As an example, a business could be targeted with a spoofed email that appears to be from their CEO.  An employee who has authority to initiate wire transfers receives the fake email with instructions to send a wire transfer.  If the employee does not recognize the email is fraudulent and sends wire transfer instructions to the bank, the bank would be fully authorized to send the wire.

MVB has controls and procedures in place to verify the identity and authority of wire transfer requests, but would not be aware if an authorized person was acting on fraudulent instructions.  As a result, it is vital that companies understand their responsibility to have procedures in place to verify the authenticity of wire transfer requests.  Here are some steps that can be taken to protect your company from compromised business emails:

  • Establish a multi-person approval process for funds transfers.
  • Don’t rely on email instructions, verify by phone using established contact information.
  • Never use email to transmit financial information and question emails with payment requests.
  • Be suspicious of unusual requests, especially urgent requests or requests for secrecy.
  • Establish a secure email capability such as ZixMail.

Stay alert and please let us know if you have any questions or concerns by contact a Banking Services Associate at 636-230-3500.