You Can Stop Funds Transfer Fraud

Electronic funds transfers, including ACH and wire transfers, are a fast, convenient, and widely used way to move funds among businesses, individuals, and financial institutions. And they are safe and secure—provided your sending instructions are accurate and valid.

Fraud, unfortunately, is a fact of modern financial life, and scammers are adept at developing new ways to trick customers. Fraud can come from outside your business or, unfortunately, from within it. Wire transfer fraud can be particularly costly because wires are typically used to move large sums of money.

As your community bank, we vigilantly monitor customer accounts for risks. But there are certain things only you can do up front to recognize and avoid fraudulent schemes. Following these best practices can save you time and money.

• Check and double check your instructions. Validate the recipient’s information, including the name of the bank, account number, and routing number, plus the dollar amount. Doing this via a phone or video call can give you peace of mind.
• Don’t accept new wire transfer information by email. Business email compromise schemes are commonplace. If instructions are emailed to you, follow up with a phone call to a person you know at the receiving organization to confirm every detail.
• Listen to your instincts. Don’t trust unexpected or out-of-the-blue requests for funds transfers. Be wary if the request is urgent.
• Monitor your accounts. Make it a habit to check your bank accounts routinely to ensure that there are no unauthorized transactions.
• Use a secure network. Public Wi-Fi networks or unsecured networks are not safe for sending wires.
• Talk to us about policies and limits. It’s prudent to limit the number of employees who have wiring authority. You can establish dollar limits per day, per transaction, and per employee. You can also set up a dedicated bank account that is only used for wire transfers. And you can block accounts that are not authorized to transmit wires.

If you have any questions, we’re here to help!  Contact your Business Banker or Relationship Manager today.