Wire fraud is a form of financial scam where criminals impersonate a trusted party—such as a company executive, vendor, or even a family member—to convince the victim to wire money urgently. These scams often rely on emotional manipulation and a false sense of urgency, using emergencies or high-stakes scenarios to pressure the target into acting quickly.
Wire transfers are especially attractive to fraudsters because they’re fast, final, and difficult to trace—especially when funds are moved overseas. Once the money is sent, it’s virtually impossible to recover. Here are some common wire fraud tactics to look for.
Common Wire Fraud Tactics
- Business Email Compromise (BEC): A scammer poses as a company executive or vendor and requests a wire transfer through a fake email that looks legitimate. Often, employees don’t notice small inconsistencies until after the funds are gone.
- Impersonation of Family Members or Friends: Fraudsters may claim to be a loved one in urgent need of help—such as being stranded abroad, arrested, or injured—and ask for immediate financial help.
- Romance and Inheritance Scams: Some schemes begin on social media or dating platforms, where fraudsters build relationships and gradually manipulate victims into wiring money. The infamous “Nigerian Prince” scam falls into this category, but often the scammers look far more like regular people.
- AI-Generated Impersonations: Scammers are increasingly using AI tools to mimic voices, write convincing emails, or even simulate video appearances to make fraud more believable.
How to Prevent Wire Fraud
For Individuals:
- Verify Before Sending Funds: Always call the person making the request using a trusted phone number. Never rely solely on email, text, or unfamiliar voice calls.
- Be Skeptical of Urgency: If someone insists that a transfer must happen now, treat it as a red flag. Fraudsters thrive on using pressure tactics.
- Protect Personal Information: Never share bank details, Social Security numbers, or passwords via unsecured channels. Your bank will not ask you for online banking login, password, or PIN, debit card details or PIN, account number, activation keys or tokens.
- Report Suspicious Activity: If you suspect a scam, report it to your bank and local authorities immediately.
For Businesses:
- Implement Multi-Level Approval Processes: All wire transfers should require verification from at least two trusted employees.
- Train Employees on Scam Awareness: Take the time to teach staff how to identify suspicious emails or requests. Include fraud detection as part of your cybersecurity training. Your business cannot afford to avoid this step. All it takes is one click.
- Use Secure Communication Channels: Establish protocols for voice verification. For example, avoid approving payments through email alone.
- Verify Vendor Information Regularly: Fraudsters will often impersonate your real vendors. When something seems off, directly call that vendor and confirm changes in payment instructions using trusted contact information.
Final Thoughts
Wire fraud continues to evolve rapidly—and so must our defenses. Taking a few proactive steps can make all the difference. Whether you’re wiring money to a supplier or receiving a call from a “relative in distress,” trust but verify the source independently. Once the money is gone, it’s often gone for good.
If you believe you may be a victim of fraud or have any questions, please contact:
First Mid Fraud Support at 833-488-3723
Monday – Friday, 8:00 am – 4:30 pm
Want to learn about other financial scams? Visit Avoid Financial Scams – First Mid Bank & Trust
