WARNING: We have noticed increased fraudulent wire transfer activity throughout the Fifth District.
The fraud begins with a faxed wire transfer request to the bank supposedly from a commercial customer. The fax includes the commercial customer account number and a facsimile signature that resembles the signature on file for the company. The fax directs the bank to wire funds to a Russian-domiciled bank through a New York correspondent. Even if there is a fraud, after the funds are wired out of the bank it is nearly impossible to recover them.
Banks are encouraged to establish and follow sound internal procedures for executing wire transfers. Best practices show that banks that call the customer directly to verify the transaction are discovering the fraud.
If you have questions, please contact Carl Twigg at 804-697-2732 or Mike Breeding at 804-697-2727.
Supervision, Regulation & Credit