Wire Fraud Red Flags to Improve Your Cybersecurity

“A couple days before closing, she got a scam email providing wiring instructions. Her attorney, agents, title office were all on the email thread, but nobody pointed out it was from a scammer until a day later when she had already wired the money.”'

A Redditor shares their story of a friend getting scammed out of a half a million dollar down payment for a new home after wiring out the money in response to a fraudulent email. It’s a scenario that plays out daily across industries that see large transactions criminals are desperate to get their hands on. 

With Cybersecurity Awareness Month in full swing, there is no better time to understand the threat of wire fraud, how to spot it, and how to protect against it. 

What is Wire Fraud

Wire fraud involves using electronic communication to enact a scheme intended to deceive and obtain money, property, or something of value.

Business Email Compromise, or BEC, is the main tactic used to execute wire fraud. BEC scams alone accounted for $2.77 billion in reported losses in 2024, according to the FBI’s Internet Crime Complain Center (IC3).

The FBI defines a BEC scam as “an email message that appears to come from a known source making a legitimate request.” These requests can be as innocent as a known vendor sending an invoice with an updated mailing address or a homebuyer receiving a message from the title company with instructions on how to wire his down payment.

This makes professionals and clients in industries like real estate, finance, tax and accounting, insurance, and even the funeral industry prime targets because they are involved in large, time-sensitive, and high-value transactions.  

How Fraudsters Find Their Target: The Anatomy of a Wire Fraud Attack

Step 1: The Reconnaissance  

Fraudsters always do their research. It’s what makes their message so convincing. They scan LinkedIn, company websites, public property listings, and social media to pinpoint each person involved in a transaction. Take the Reddit example from earlier, where the fraudster identified all parties involved, including real estate agent, the buyer, the title officer, the company controller, and the attorney. They aim to add as much information as possible to make their message as convincing as possible.

Step 2: The Impersonation 

Fraudsters use the information they gathered to create a phishing or spearphishing email, or a fraudulent email pretending to look legitimate. These emails can be used to either hack into another professional’s email after the target clicks a link or downloads an attachment from the phishing email.  

• Phishing – Fraudulent communication from what appears to be a trusted source. 

• Spearphishing – A more personal form of phishing that includes the recipient’s personal information such as their name or company. 

• Malware – Malicious software like worms, trojans, and spyware used to infiltrate computers and gather private information. 

For more signs of phishing and spearphishing, read our 2025 Cybersecurity Awareness Month Best Practices blog for tips on safeguarding your data. 

Step 3: The Trap 

After gaining access, the fraudster lies in wait. They monitor email communications for information on when and what type of requests will be expected and seen as most legitimate. Then they strike, sending an email from an impersonated account often paired with an urgency or familiarity designed to get the target to act without suspecting a thing. For example, “Urgent: Our banking details have been updated. Please use this new account for the wire transfer.”  

Wire Fraud Red Flags: What to Watch For

The best defense against wire fraud is knowledge and awareness. Here are some of the most common red flags to watch out for.

1. A sense of extreme urgency or pressure. Fraudsters often include language to make the request seem so urgent that you don’t have the time to confirm and must act now to avoid some terrible consequences. They rightly fear that if the target took time to vet the request, it would be revealed as fraud.  

2. Slight imperfections. Carefully scan the email address, the grammar, or any company assets for imperfections. For example, the legitimate “support@microsoft.com” is often impersonated as “support@rnicrosoft.com,” with the “m” in “microsoft” replaced with an “r” and “n” for a deceptive “rnicrosoft”. This is an example of the close attention required to scan for these imperfections.

3. A sudden change in payment instructions. Treat any change to an account number as a high-risk event. Always follow up to confirm.

4. Secrecy of an unusual channel. Strange limitations for how someone can be reached or odd channels requested for transfer. “I’m in a meeting and can’t be reached by phone. Just send the wire.”

5. Unusual Request. One classic example is a CEO emailing an accountant with an urgent request to buy gift cards for a client.  

While these are the most common wire fraud red flags, they all share the same element of being slightly off. Always take time to review the request for these signs of phishing before making a big, irreversible decision.  

How to Protect Against Wire Fraud 

Know the signs of wire fraud is key, but just as important is knowing how to respond. Here’s a playbook of best practices for responding to suspected wire fraud.  

1. Pause. Fraudsters rely on emotion and speed. Their use of urgency or pressure is meant to cloud judgment and encourage action. 

2. Always Double Check. Treat all requests for funds with professional skepticism, even if they appear to come from a trusted colleague or client.  

3. Use Out-of-Band Verification. Out-of-band (OOB) verification is a security method that verifies requests on a channel separate from the original. For example, if you receive an email request, confirm over the phone using a trusted number you have on file. Verbally confirm all the details of the transaction, such as the account numbers, dollar amount, and recipients' name before sending the funds. 

4. Train Your Team. A fraudster’s best friend is someone untrained on the signs of fraud. The more knowledgeable your team, the stronger your defenses.  

If you think an email is fraudulent, do not reply, do not click any links, and do not open any attachments. Report the message to your IT department immediately.  

If you have already sent money in response to a fraudulent request, it is key to act as fast as possible: 

1. Call your bank or financial institution immediately to request a wire recall. 

2. Report the crime to the FBI. The FBI’s Recovery Asset Team (RAT) has a track record of successfully freezing and recovering funds, but must be notified immediately. 

Wire Fraud & Cybersecurity Courses for Professionals

Pausing. Reviewing. Picking up the phone to verify. These are simple steps we can take that can save careers and life savings.

At WebCE, we are committed to helping you and your team stay secure with the leading best practices to create a strong cybersecurity culture and your very own “human firewall.” Our library of cybersecurity training and anti-money laundering courses offer examples, insights, and actionable steps toward creating a more informed and aware cybersecurity culture.  

Dive into our expansive online catalog or get instant answers from our award-winning Support Services team at 877-488-9308 on how you create a world-class cybersecurity training program for your organization.