Tag: ic3 reporting

Story Highlights

• 63% of U.S. companies faced wire fraud in 2024, costing billions
• Prevention steps: verify wiring instructions and train employees
• Response plan: contact banks, file IC3 report, secure IT systems
• Insurance & legal support: notify carriers, assess data exposure

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Wire fraud is one of the fastest growing types of cyber threats – a 2024 ABA Banking Journal survey found 63% of U.S. companies have experienced at least one incident, with billions of dollars in estimated loss.

Criminals often impersonate a company executive—or a known vendor—to deceive someone into sending money to a fraudulent account. Because wire transfers are fast and may be difficult (if not impossible) to reverse, victims often cannot recover the lost funds.

Protection starts with prevention. Educate employees about the different types of wire-transfer fraud and require them to verify critical information through a different communication channel, as well as a phone number or email account you know is correct, before sending money or changing any established wiring instructions. But, should your organization fall victim to wire-transfer fraud, it is extremely important to have a response plan in place to act quickly. Here are some recommended steps to include in the plan:

 

1. Attempt to recover the funds

Notify your financial institution immediately. Be prepared to provide:

• Account holder information: Full name, address, account number and contact details.
• Transaction details: Date, amount, recipient name and account number.
• Statement of non-authorization: A sworn declaration that the transfer was not authorized.
• Police report information: Case number, officer name and department (if applicable).
• Signatures and notarization: The affidavit must be signed and typically notarized.

 

2. File a export with authorities

File a report with IC3.gov at the Internet Crime Complaint Center (IC3) to report the incident. Be prepared to provide details about where the wires were sent and received, the date, time and amount transferred and information about the fraudulent email that triggered the transaction.

 

3. Secure the organization’s IT environment

Reset all passwords, especially for affected accounts. Revoke all tokens. Preserve system logs for forensic analysis, including authentication logs and email access logs. Enable Multi-Factor Authentication (MFA) if it is not already in place. Consider having your attorney retain a vendor or forensic investigator to help if you can’t do it with existing resources.

 

4. Notify your insurance carrier and broker

Contact your cyber and crime insurance providers. Your coverage may fall under multiple policies. The incident may not qualify as a cybercrime, but rather traditional fraud via email. Your broker can help determine coverage.

 

5. Assess broader risk and potential data exposure

In addition to accessing and reviewing individual messages, the attacker may have acquired a copy of your mailbox. You may be able to determine this through your logging records, or you may need to research via the connection method used by the attacker. If there is a reason to conclude sensitive information was accessed or acquired, review the exposed data for information that is protected under state laws, including Personally Identifiable Information (PII). If PII was exposed, evaluate whether affected individuals must be notified and consider offering fraud and identity theft protection services.

As with any type of fraud or cybersecurity breach, it is optimal to hire an outside attorney with experience in these types of events. This facilitates attorney-client privilege, protecting confidential communication; provides you with access to additional experienced resources, including those in the attorney’s firm or third parties the attorney can access; and legitimizes the response, providing protective distance with regulators and third parties.

Wire-transfer fraud can cripple an organization. Don’t be caught unprepared. Review your organization’s incident response plan and make sure these issues are addressed.

Alan Winchester is the leader of Harris Beach Murtha’s Cybersecurity Protection and Response Practice Group.