Image of hacker using email to commit wire transferfraud

Anatomy of a Wire Transfer Scam

At North Shore Bank we’ve seen an alarming rise in fraud over the past few months. Utilizing a variety of techniques, scammers frequently have been targeting businesses by masquerading as legitimate contacts and convincing their victims to wire money to them. An example might look something like the sequence of events illustrated below.

A Common Fraud Scenario

– 1 –

A fraudster is able to compromise one of your client’s email accounts. For this example, let’s say that it's a Real Estate Agent with whom you have a pending financial transaction.

– 2 –

The scammer reviews the Real Estate Agent’s email history and after identifying the upcoming business deal with your company, sends you an email with detailed wire instructions.

– 3 –

Since this is not an  unexpected request, you notify the bank and instruct them to wire the funds in accordance with the instructions that you've received from the scammer.
Unfortunately, once a scenario like this plays out neither you or the bank have much recourse for recovery of the funds. Remember, wire transfers — though fast and convenient — are really the equivalent to sending cash. It’s also important to note that fraudsters can request payment in a variety of other electronic and equally immediate methods.
 

Protecting Yourself From Attacks

While there are never any guarantees, the best way to protect yourself is to be vigilant and to always exercise caution before transferring funds. We recommend that you engage in the following best practices: 
 
  • Before replying to an email, hover over the email address to determine if it is going to the correct individual’s email address.
  • Review the email for incorrect grammar, punctuation, spelling or misuse of capital letters. These can all be strong indicators that the email could be fraudulent.
  • Be cautious if the message conveys a sense of urgency — imploring you to act quickly or within a certain time frame.
  • If the message refers to COVID as a rationale for changing the original terms be skeptical.
  • Always contact your client directly to verify the authenticity of the request. Make certain to use the information that you have on file, as opposed to any contact numbers that may be included in the email request.
 

If You Suspect That You’ve Been Scammed

  • Contact Customer Support at North Shore Bank — (978) 573-1300.
  • File a report with your local law enforcement agency.