Scarinci Hollenbeck, LLC
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Author: Scarinci Hollenbeck, LLC
Date: March 17, 2015
The Firm
201-896-4100 info@sh-law.comThe scammers specifically target businesses working with foreign suppliers and/or businesses that regularly perform wire transfer payments. To date, the FBI has received complaints from every state in the United States and across a range of industries.
There are several versions of the BEC fraud. In one common scam, a business, which often has a long-standing relationship with a supplier, is asked to wire funds for invoice payment to an alternate, fraudulent account. Another scam involves hacking into the e-mail accounts of high-level business executives and using the compromised account to send a wire transfer request to a second employee within the company who is normally responsible for processing these requests or directly to the financial institution.
According to the FBI, the perpetrators of the BEC scam are fairly sophisticated and, therefore, more difficult to detect. The e-mail requests for a wire transfer are well written and specific to the business being victimized. In addition, the dollar amounts requested are similar to normal business transaction amounts.
Prior to initiating the fraud, the perpetrators monitor their selected victims to determine the individuals and protocol necessary to perform wire transfers within a specific business environment. They may also send “phishing” e-mails to obtain additional details regarding business or individual being targeted (e.g., name, travel dates, etc.).
The BEC scam can not only cause financial losses but also harm business relations. With this in mind, below are several tips to help avoid falling prey:
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