42 MARCH / APRIL 2017 In the age of technology, everyone wants instant gratification, and receipt of proceeds is no different – “Send it to me now!” Did you know, however, that once a wire is sent, it can easily be withdrawn from the recipient’s bank account and sent out of the country? Then, once the wire is out of the Federal Reserve System, there is no way to recall or retrieve it. Are you sure the client does not want a check instead? However, if a wire is required, steps should be taken to prevent wire fraud. Proper identification. Before receiving wiring instructions, contact the sender through an independently verified phone number to identify the recipient and the recipient’s contact information. Record the following: • The name of person you talked to; • The time of call or inquiry; • The recipient’s information provided. If the sender calls you first, you should still call the sender at the previously identified number to confirm that the person who called you was the person he or she claimed to be, and that the wire instructions received are correct. Verbal confirmation. Upon receipt of wiring instructions, before wiring funds, call the recipient to verify wiring instructions. Keep a record of: • The person you called; • The number called; • The time called. Delivery verification. After wiring the funds, call the recipient to confirm receipt of the wire in his or her account. Keep a record of: • The person called; • The number called; • The time called. Receiving a Wire Never send wiring instructions by unencrypted email. Instead use encrypted email (the entire email needs to be encrypted, not just attachments), landline fax machine, U.S. Postal Service, overnight delivery service or hand delivery. Proper identification. Before sending wire instructions, confirm with the person who will be sending funds the identity of the person or institution which will actually be wiring the funds. Get a contact number for the person or institution that will be wiring funds upon receipt of instructions. • Forward wire instructions only to your client, or person designated by your client, who will actually be wiring the funds to your account. • Do not relay wire instructions through third parties (e.g., real estate agents) that may forward unencrypted instructions. Verbal confirmation. Instruct the verified sender to call your office and confirm receipt of the wire. This way you will know when the wire was sent, and the verified sender will know it was received. If there is a problem, you will find out sooner rather than later. Delivery verification. Once wire instructions are sent, call the recipient, and verify intact receipt of instructions sent. Keep a record of: • The person called; • The number called; • The time called. Wire Instructions Myths 1. “I received wiring instructions through an encrypted email from a name I recognize, so I am good to go.” Myth! Wiring instructions sent through encrypted emails does not mean they are legitimate. Cyber Fraud Prevention Wiring tips Article author Jonathan Biggs Vice President, Director of Risk Management and Education Investors Title Insurance Company jbiggs@invtitle.com Investors Title Insurance Company is an associate member of the Indiana Bankers Association and an IBA Preferred Service Provider. SECURITY / FRAUD
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