Unfortunately, fraud is a reality – and many of us will experience firsthand such scam attempts. The good news is that by staying vigilant, we can better protect ourselves.
Among those scams, a prevalent one known as phishing involves fraudulent communications designed to trick people into divulging personal or business financial information.
Email Account Compromise (EAC) scams target commercial customers’ personal accounts, especially those who conduct large transactions, while Business Email Compromise (BEC) can be linked to other types of fraud, including lottery, employment, and rental scams.
Steps you can take to avoid phishing, EAC and BEC scams include:
Scam emails may also serve as vehicles for malware or computer viruses to gather information, such as passwords and user IDs. Some scammers may send messages that appear to come from company executives.
While transferring funds electronically can streamline and simplify transactions, fraudsters are always on the lookout for ways they can use these tools to their benefit. Some may attempt to order wire transfers by illegitimate emails, phone calls or texts and may refer to specific individuals or business functions such as payroll, human resources and accounting. A common tactic is to convey a sense of urgency, sometimes sending such emails late in the day, just before a holiday or weekend or when the purported sender is out of the office.
Fraudsters may send what appear to be legitimate transfer instructions to complete a wire transfer only to intercept the funds, leaving the business unaware until the intended recipient notifies they have not received the funds.
If you receive a communication that appears suspicious, be sure to check its authenticity before performing any wire transfers. Never act upon changes to payment instructions from an email or other electronic message alone. Instead, check the validity of the instructions from the requester with another trusted party at the company, using a different communication method.
For any wire request, it’s good to remember that if it doesn’t feel right, it probably isn’t.
For more information on current fraud issues, explore the Federal Trade Commission’s free online security tips at onguardonline.gov.
This article was originally published as a blog by CIT on September 22, 2021.
This information is general in nature and may be subject to change without notice, including any pricing information. Applicable laws and regulations are complex and subject to change. CIT and its representatives are not authorized to give legal, tax or accounting advice. Please contact your own attorney, accountant or tax professional with any specific questions you have related to the information provided that are of a legal accounting or tax nature.
Member FDIC ©2021 CIT Group Inc. All rights reserved. CIT and the CIT logo are registered trademarks of CIT Group Inc. Deposit and loan products are offered through CIT Bank, N.A., the FDIC-insured national bank subsidiary of CIT Group Inc.