CONTRIBUTED ARTICLE
How Fiduciaries Should Approach the Crime of Wire Fraud (ELECTRONIC FUND TRANSFERS) By Ryan Castle and David Adams, Conduit Security
F
und managers, real estate
is very specific and focuses on
themselves at the right moment
developers, and companies
social
using effective confidence tricks, to
with investors are all acting
basic, it can be summarized as fake
as fiduciaries for their investor’s
invoice fraud delivered with social
capital and have a duty to preserve trust
and
protect
their
clients'
interests. Wire Fraud is a direct and underappreciated threat to this duty, especially considering the financial and reputational damage associated with the crime. Wire
fraud
engineering.
engineering tactics.
At
its
most
steal your money.
The attacks
One of the most important steps in
range in sophistication from very
protecting yourself is to acknowledge
basic phishing and spoofing attacks
that any recourse and recovery is
to
cases
unlikely, making the only solution
including business email compromise,
to work diligently on solving the
ported
wire fraud problem pre-loss.
much
more
cell
advanced
phones
and
deep
The
good news is there are existing best
fake authorizations.
practices that protect your investors, laws
are
rather
expansive, and are similar to those
The attack tends to take advantage
their capital, and your business from
of how busy the targets are, often
this crime.
relying on the fact that wire security
of mail fraud, except with the use
is an overlooked aspect of any deal,
The Problem
of electronic communications. The
and few organizations have concrete
Nearly $2 Billion was stolen last
crime, however, that targets fund
controls in place. With deadlines
year
managers and real estate operators
looming,
Conduit Security’s CEO, Ryan Castle,
16
the
bad
guys
insert
in
wire
fraud,
however,
