How To Detect Wire Fraud Before It's Too Late


What is wire transfer fraud?

According to Fannie Mae, wire transfer fraud occurs when transfer instructions are altered, causing funds to be diverted from intended recipient and delivered to another account. 

FBI Data shows a 270% Increase in identified victims and exposed loss between January 2015 and January 2017. -Fannnie Mae

What are the methods of compromise?

No two attacks are alike. Fraudsters use a variety of tactics to commit wire fraud using malware, social engineering, phishing, and email.

Exposure to U.S. victims since October 2013 exceeds $748 million. -Fannie Mae

How can you prevent wire transfer fraud?

  • Confirm that email addresses are legitimate. Check for minor changes that mimic legitimate email addresses. 
  • Use a confirmation process. This can include verbal communication using a telephone number known by both parties.
  • Know your customer. Be aware of your client's typical transfer activity and question any variations
  • Be "Fraud Smart" by educating your team
  • Report any suspicious activity through established channels. 
  • Always advise your clients to contact their Escrow Company directly to verify wire instructions.

Read about these common red flags. Resources to help you combat mortgage fraud here

Help spread the word about wire fraud. Please feel free to download the inforgraphic below and share. Download here

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