We are seeing a concerning rise in fraudulent activities targeting school districts and cities, particularly in the realm of ACH and wire transfer transactions. Fraudsters are employing sophisticated social engineering techniques to deceive and mislead, resulting in unauthorized target account changes for ACH and wire transfer transactions, leading to significant financial losses. Construction projects, in particular, have emerged as prime targets for these fraudsters.

Guidelines to Help Protect Against Fraud & Social Engineering in ACH/Wire Transfers

To safeguard your assets and help ensure secure financial transactions, if bank account information is new or an alteration to existing account information is being requested, please consider each of the guidelines below:

1. Verify Vendor Authenticity:
   • Call a Known Vendor Number: Before making any payment, independently verify the vendor’s legitimacy by calling a confirmed and well-established phone number from your records.
   • Request and Verify the Contact Name: Speak to a representative and verify the name of the individual requesting the transfer and the purpose of the request.
2. Cross-Verify the Request:
   • Confirm the Request Origin: Ask the vendor to provide details about the request’s origination, such as email or communication channel, to confirm its authenticity.
   • Cross-Check with Known Contacts: Reach out to your known contacts within the vendor organization to verify the request’s validity.
3. Verify Bank Account Changes Associated with ACH or Wire Transactions:
   • Direct Communication: Independently reach out to a trusted contact within the vendor’s organization to confirm any changes to bank account information associated with ACH or wire transfers.
   • Confirm Changes via Known Channels: Use confirmed communication channels, such as previously established emails or phone numbers, to validate any alterations to payment information.

Education & Vigilance Are Key

Please share this alert with your staff members involved in financial transactions and provide education about the evolving tactics of fraudsters. Maintaining vigilance and adopting a culture of verifying any unusual financial requests can significantly mitigate the risk of falling victim to fraudulent schemes.

Exercise caution, adhere to the provided guidelines, and promptly report any suspicious activity to the designated authorities. Contact us if you have questions or have concerns about fraud and social engineering in ACH/wire transfers within your organization.