Tuesday, May 5, 2026
Wire transfers remain one of the fastest and most efficient ways to move funds, but they have also become a common target for fraud. Across the banking industry, businesses are experiencing an increase in wire transfer scams where criminals attempt to redirect payments by impersonating trusted vendors, partners, or even company executives.
Because wire transfers are typically processed quickly and are difficult to recover once sent, it’s important to stay alert and verify payment instructions before initiating any transfer.
Common Wire Fraud Tactics
Fraudsters are becoming increasingly sophisticated. Some of the most common schemes include:
Vendor Email Compromise (Business Email Compromise)
Criminals gain access to a vendor’s email account and send updated wiring instructions that appear legitimate. The message often looks like part of an existing conversation, making it difficult to detect the fraud.
Last-Minute Payment Changes
A vendor or business partner supposedly sends an urgent message stating that their banking information has changed and asks that an upcoming payment be wired to a new account.
Executive Impersonation (CEO Fraud)
An employee receives an urgent email appearing to be from a company executive requesting a confidential wire transfer for a “time-sensitive” transaction.
Real Estate or Closing Scams
Fraudsters pose as attorneys, title companies, or closing agents and provide fraudulent wiring instructions related to a real estate transaction.
Recent Examples We’ve Seen
Unfortunately, we have recently seen cases where businesses lost funds after wiring money based on fraudulent instructions:
- A local business received an email that appeared to come from a long-time vendor requesting payment to a “new account due to an internal audit.” The email thread looked legitimate, but the vendor’s email had been compromised. The wire was sent before the business discovered the instructions were fraudulent.
- Another business received a request to wire funds for an invoice where the payment instructions had been altered within an otherwise legitimate email chain.
In both cases, the requests appeared authentic and matched ongoing conversations with trusted vendors.
Best Practices to Protect Your Business
Before sending a wire transfer, we strongly recommend the following safeguards:
- Always verify changes to wiring instructions by calling your vendor using a known, trusted phone number.
- Do not rely solely on email to confirm payment information.
- Establish internal controls requiring dual approval for wire transfers.
- Be cautious of urgent or last-minute payment requests, especially those involving new banking instructions.
- Train employees who handle payments to recognize common fraud tactics.
If You Suspect Fraud
If you believe you may have received fraudulent wiring instructions or if a wire has already been sent in error, contact us immediately. Acting quickly can sometimes increase the chance of recovering funds.
River City Bank is committed to helping protect your business from fraud. If you would like to discuss additional security procedures or best practices for your organization, please reach out to your relationship manager or contact our team.