May 26, 2020

Be on High Alert for New Wave of Wire Fraud Scams

Scammers always go back to the good old scams, even when they are making bundles on new scams. Although our lives have been consumed of late with an onslaught of ransomware attacks, this past week, we have seen an uptick in good old wire fraud schemes.

The uptick is so significant that it warrants a mention on the blog – a reminder to be on alert for wire fraud schemes and to implement measures to prevent becoming a victim. Attacks occur when employees get complacent, which is happening now in some finance and accounts payable departments.

The incidents occur in the old-fashioned way—a spear phishing attack on personnel in finance, payroll or accounts payable. Real past-due invoices from real vendors are attached, asking that the invoice be paid. Urgently. Attackers impersonate the CEO, CFO or other supervisory type to provide authorization for the payment. The payment instructions are to wire the funds to a real bank account at a well-known bank. How could it be a fraud if the funds are being wired to a real bank account and a well-known bank? It is happening every day.

Let your employees know about the rash of wire fraud schemes that are hitting the air waves, and remind them to be on high alert for spear phishing schemes and to implement processes to have several methods of authorization before believing any invoice sent via email from anyone.

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About this Author

Linn F. Freedman, Robinson Cole Law Firm, Cybersecurity and Litigation Law Attorney, Providence

Linn Freedman practices in data privacy and security law, cybersecurity, and complex litigation. She provides guidance on data privacy and cybersecurity compliance to a full range of public and private clients across all industries, such as construction, education, health care, insurance, manufacturing, real estate, utilities and critical infrastructure, marine, and charitable organizations. Linn is a member of the firm's Business Litigation Group and chairs its Data Privacy + Cybersecurity Team. She is also a member of the Financial Services Cyber-Compliance Team (CyFi ...