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#2135934 - 06/26/17 09:58 PM Fraudulent Wire Question
Lisa W Offline
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Chicago, Illinois
What is the best course of action to take when our customer notifies us that their vendor was hacked and payment instructions changed. Then a wire goes out. We can't recall the wire once accepted by the receiving bank - and I will usually call and try to get someone to at least look into it. But what, short of having our customer file a police report and them contacting the receiving bank, can we do in situations like this? Our customer does not understand why we cannot "reverse" or "recall" the wire . .

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Deposits and Payments
#2135936 - 06/26/17 10:07 PM Re: Fraudulent Wire Question Lisa W
rlcarey Online
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rlcarey
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Galveston, TX
that their vendor was hacked and payment instructions changed

Can you explain this a little more? They were sent a bill and they paid someone posing as their vendor??
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#2135954 - 06/27/17 12:48 PM Re: Fraudulent Wire Question Lisa W
HappyGilmore Offline
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Pulling people out of the ditc...
you can do a reversal request via fedwire, but you also need to reach out to the receiving bank, tell them what occurred, send them a letter of indemnification if there are funds in the account so they can return to you. Chances are if it was done fraudulently the funds are gone and your customer has no chance of getting back. Educating your customer on finality of wire payments is an ongoing process, not something they are likely to want to hear about at this point.
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#2136015 - 06/27/17 03:42 PM Re: Fraudulent Wire Question Lisa W
RockChucker, CAMS Offline
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The Country
Sounds as if once you have done all you can reasonable do the burden ultimately falls on the customers vendor so let them sort it out.
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#2136018 - 06/27/17 04:01 PM Re: Fraudulent Wire Question Lisa W
Dog Lady Offline
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that their vendor was hacked and payment instructions changed

We recently had a local case (not our bank, but one of our customers) where the email with wiring instructions was intercepted before it arrive in the inbox of the receiver and the attached payment instructions were altered. So it was a legitimate email from a legitimate person, but the payment instructions were fraudulent. The attachment in the outbox did not match the attachment in the inbox.

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#2136024 - 06/27/17 04:14 PM Re: Fraudulent Wire Question Lisa W
HappyGilmore Offline
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Pulling people out of the ditc...
which is why you should be educating your customers that acceptance of email instructions for wire transfers should always be confirmed by phone to a phone number on record and previously called, not a number provided in an email, and never without speaking to someone...
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#2136060 - 06/27/17 05:47 PM Re: Fraudulent Wire Question Lisa W
Dog Lady Offline
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Exactly what Happy said. Just asking if they sent the email with the instructions attached is not enough. The customer should actually confirm the instructions as well.

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#2136071 - 06/27/17 06:03 PM Re: Fraudulent Wire Question Lisa W
BrianC Online
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Illinois
Quote:
confirmed by phone to a phone number on record and previously called


There is risk here, too. Not only do the bad guys hack the email, they also hack the telephone provider account and access the call forwarding feature to send the call back to your client to the fraudster's disposable cell phone number. The Bank calls the phone number on record, talks to the fraudster who confirms the "legitimacy" of the wire, and off the money goes.
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#2136103 - 06/27/17 07:27 PM Re: Fraudulent Wire Question Lisa W
HappyGilmore Offline
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Pulling people out of the ditc...
Brian - was not talking about the bank calling back, but the customer who originated the wire calling their "vendor" to confirm instructions. Bank should not be acting on any emailed wire instructions (at least in the pipe dream world I live within).
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#2136161 - 06/28/17 11:54 AM Re: Fraudulent Wire Question Lisa W
Elwood P. Dowd Offline
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Next to Harvey
Like rlcarey, I don't understand the fact situation.

Although FinCEN 2016 - A003 , is focused on filing SARs, it includes the best practical advice on dealing with fraudulent wires. File with IC3 and call the FBI ASAP if you want to have any chance of recovery. Then, file the SAR.
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