Wire transfer fraud is an increasing trend in financial institutions, and it looks to continue to grow in the coming years. There are endless ways criminals will find to transfer someone else’s money into their own bank accounts, but there are a few red flags that should help alert the teller executing the transfer that something may be amiss. Some situations to keep an eye out for are abnormally large transfers, transfers from an account that has never wired money in the past, and any transfer to Europe, Africa, or Asia. Another warning sign is someone who has excuses as to why he or she can’t speak with you over the phone. Banks can help protect themselves and their customers by paying attention to these and other red flags and by putting safeguards in place to help spot potential wire transfer thefts before they happen.
Protection against this type of fraud is an important part of any bank’s bond and D&O coverage. For more information on how Financial PSI can assist your bank with these extremely important coverages, contact Brian Mobley at 615-244-5100.