Glossary
Wire Fraud
Wire fraud is when criminals trick you into sending money to them instead of where it's supposed to go. They might pretend to be your vendor with 'new bank details' or your CEO ordering an urgent transfer. Once the wire goes through, the money is usually gone forever - banks rarely recover it.
What is Wire Fraud?
Wire fraud in a cybersecurity context refers to fraudulent schemes that trick victims into wiring money to criminals. It typically involves business email compromise (BEC) where attackers impersonate executives, vendors, or partners to redirect legitimate payments to attacker-controlled accounts.
Why Should You Care?
Wire fraud is the most financially damaging form of cybercrime. The FBI reports over $2.7 billion lost annually to BEC/wire fraud schemes. Unlike ransomware where you might recover data, wired money is typically unrecoverable. Real estate, law firms, and financial services are heavily targeted.
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Real-World Example
A real estate closing was derailed when the buyer received "updated wire instructions" via email that appeared to be from the title company. They wired $425,000 to what they thought was escrow. The email was a fraud - hackers had been watching email conversations and struck at the perfect moment. The money was moved offshore within 24 hours and never recovered.
How to Protect Against Wire Fraud
- 1.
ALWAYS verify wire instructions by phone using a known number
- 2.
Never use phone numbers from the email requesting the wire
- 3.
Implement dual authorization for all wire transfers
- 4.
Be extra cautious with "changed banking details" notifications
- 5.
Train all employees who handle payments on wire fraud tactics
- 6.
Contact your bank immediately (within 24-48 hours) if you suspect fraud
Related Terms
Business Email Compromise, Phishing, Social Engineering, Invoice Fraud
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