What is an accrued expense vs accounts payable?
In accounting, understanding the difference between accrued expenses and accounts payable is crucial for managing a company’s financial health. Both terms refer …
Wire fraud happens when cyber scammers use a variety of methods, including fake emails, text messages, and phone calls to ask for personally identifying information. In many cases, the cyber scammer will claim they are from the authoritative bodies, your credit card company, or another company you do business with.
If you’re like most individuals, you use the internet, social media, and other forms of electronic communication. Whether you know it or not, you’ve probably been the victim of attempted wire fraud attacks. What really is wire fraud? Wire fraud is a type of financial fraud that involves the use of telecommunications.
The Australian Competition and Consumer Commission’s Scamwatch recorded nearly 302,000 scams in 2023, with financial losses totaling $481 million. Wire fraud schemes are continuing to grow in prevalence, making it important to find ways to safeguard your personal information. Let’s explore the different types of wire fraud scams and how you can protect yourself from wire fraud attempts.
When it comes to wire fraud, scammers will usually seek out information such as bank account details, your identification number, your address, and/or credit card information. Here are some of the crimes that cyber scammers will attempt:
The rise of technological advancements is undoubtedly a contributing factor to the rise in wire fraud cases. Scammers can find information online about which financial institutions or credit card companies you use to pose as a representative. In addition, employment information and lists of family members and friends are easily accessible with the rise in social media.
Accessing your personal and financial information from online sources adds to the ease of sounding legitimate. Moreover, many companies still contact customers over the phone, adding to the perceived credibility of scammers. Voice-changing software programs have also contributed to the authenticity of these wire fraud schemes.
Furthermore, individuals place more reliance on digital transactions, with 75% of all financial transactions worldwide conducted through digital means. With more transactions facilitated over telecommunications, the risk of accidentally purchasing through a fake website or remitting your information to a fraudulent representative increases.
Another factor contributing to the rise in wire fraud cases is the lack of awareness and education surrounding cyber threats. Wire fraud scams conducted over telecommunication weren’t an issue 20 years ago. The newness of these wire fraud scams leads to minimal education and awareness training, especially in older generations.
There are steps you can take to recognize and avoid wire fraud scams. Here are some red flags to watch out for:
When verifying the legitimacy of requests and transactions, it’s always best to double-check the number, account, or email address being used. If you have any suspicions, go to the company’s website, stop in a local location, or verify with a family member. Falling victim to federal wire fraud can have serious repercussions, such as lost money and compromised accounts.
Just like it’s important to recognize potential wire fraud, it’s also important to take action to prevent scammers from gaining access to your sensitive information. Here’s what you should do:
If you’re a business owner, you need to take the necessary steps to protect yourself and your company from wire fraud. This relies on having the right resources working in the background to monitor your payments, like Eftsure. We help business owners prevent and detect payment fraud through rigorous vendor checks and comprehensive payment controls.
If you’ve been a victim of wire fraud, it’s crucial that you report the incident to the proper authorities and organizations. In many cases, you aren’t the only individual or business that’s been targeted for wire fraud. Reporting the incident to the proper channels can help prevent the scam from happening to other businesses and individuals. Here’s what to do if you’ve been a victim of wire fraud:
Taking a proactive approach going forward is important. Once a scammer is able to access your information once, they might try to gain more information through future scams.
There are organizations dedicated to supporting victims of wire fraud. This can include your local authorities, the International Association for Asset Recovery, and the International Association of Prosecutors.
When it comes to recovering wire fraud charges, you want to get in contact with a local lawyer or legal professional. They can help you walk through the necessary steps to recover losses from scammers.
Summary
In accounting, understanding the difference between accrued expenses and accounts payable is crucial for managing a company’s financial health. Both terms refer …
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Eftsure provides continuous control monitoring to protect your eft payments. Our multi-factor verification approach protects your organisation from financial loss due to cybercrime, fraud and error.