The FBI’s 2025 Internet Crime Report revealed that over one million internet crime complaints were reported throughout the year, with total losses exceeding $20 billion. A significant portion of these losses stem from business email compromise and related fraud schemes which can ultimately result in fraudulent wire transfers.

How Wire Fraud Occurs

Wire fraud is generally the final step in a broader fraud scheme. A fraudster first gains a foothold into your organization through a social engineering attack, such as:

• Compromising an employee’s email account
• Impersonating a trusted vendor or executive
• Sending phishing messages to obtain login credentials

Imagine you receive a phone call from someone claiming to be a legitimate vendor for your business. They inform you that you have an overdue invoice, requesting a wire transfer to a different account immediately. You don’t remember this service being performed and recognize that the payment instructions are irregular. Instead of acting under pressure, you take the time to call the vendor from their verified phone number and determine that the original call and wire instructions were fraudulent.

Warning Signs

Wire fraud schemes can target businesses of any size, so being aware of the warning signs and educating your employees can help protect your organization. Staying diligent and watching for suspicious behavior plays a key role in mitigating financial loss. These scams often involve fake invoices, a change in payment instructions or emails that appear authentic but contain altered details. 

• Sudden changes. Last-minute or unexpected changes to payment instructions can be a sign that a bad actor is trying to trick you into wiring money to a fraudulent account.
• Unusual emails. In an attempt to imitate a legitimate email, a fraudulent email may come from an email address that is slightly different from the one you usually receive. You should evaluate each email you receive.
• Differently formatted invoices. If you receive an invoice in a different format that doesn’t match prior invoices, you should verify its legitimacy.

Train Your Employees

Part of your company’s strength relies on informing and equipping your employees to identify fraudulent attacks. When it comes to paying invoices and handling money, share these key details about wire fraud to avoid large financial mistakes.

• Always verify wire instructions directly with your vendor – preferably by phone using a trusted phone number or in-person.
• Never rely solely on email to confirm payment details.
• Be cautious of last-minute changes to account numbers or payment instructions.

Empowering employees with this knowledge can help prevent costly mistakes and help protect your organization.

If you believe you may have sent a fraudulent wire, contact West Bank immediately.