Tips on Avoiding Wire Fraud
To our valued clients and partners:
Instances of wire fraud are on the rise everywhere, including the insurance industry. We share the following information as a reminder of best practices for reducing the likelihood of you being victimized by this type of criminal activity.
The insurance industry engages in numerous wire transfers daily for premium and claims payments, some of which are very large amounts. This creates an opportunity for a criminal to insert themselves in the chain of email communication and trick people to divert money to the criminal’s account.
Cyber criminals hack into systems, pose as a legitimate and trusted person, and then tell the hacked person to create or change bank account details so that payments are made to the criminal’s account
What you can do
It is important for you to be alert to any instructions to create new or change existing wire transfer details.
We suggest the best practice is for you to call - do not email- the person that has given you the wire transfer instructions and verbally verify the authenticity of those instructions, even if you have no reason to suspect the email is fraudulent. We suggest you use a previously known phone number or one that is published on an official website, not one that may be listed in the email.
Via our friends at AmWins Brokerage.