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- Wire fraud scams present real risks for attorneys. These risks may be mitigated by staying up to date on common scams targeting attorneys, implementing cyber security measures, and instituting wire transfer protocols that include verifying wiring instructions by telephone before wiring any funds.
Jul 28, 2020 · In wire transfer scam cases, the bad actors leverage what cybersecurity experts call the "human firewall" by manipulating employees and attorneys to hand over their credentials.
- Dylan Jackson
While wire fraud scams affect many different types of professionals, lawyers who work with real estate clients and/or wire funds as part of their practice are particularly vulnerable. To help lawyers manage their risk, we have highlighted the typical scenario and provided risk management guidance to avoid becoming a victim of a fraud scheme.
- Don’t Be Spoofed: Check the Email Address. Lawyers should use spam filters and check email addresses to reduce the risks posed by fraudsters impersonating lawyers, law firm staff, clients, financial institutions and others.
- Check Documents to Make Sure They Haven’t Been Manipulated. When sending documents electronically, on receipt back, double check to make sure that key information, such as wire direction instructions, have not been manipulated.
- Implement Independent Verification on All Wire Payments. Verify all directions to wire funds out of trust by confirming the instructions using a different medium than they were first received.
- Make Fighting Fraud Part of Your Firm Culture. Continue to train yourself and train your staff about fraud risk. For related CPD programming on fraud prevention, see our watch-anytime CPD programs on real estate fraud, bad cheque and cyber fraud.
wire fraud scams Lawyers who wire money to or on behalf of clients should be aware of a fraud scheme that could potentially cost the lawyer and/or client hundreds of thousands of dollars.
Mar 4, 2024 · “The law on liability in wire transfer fraud is developing, with victims or firms often being held liable if they failed to act prudently in detecting and preventing the fraud,” she says.
May 11, 2023 · Wire fraud scams present real risks for attorneys. These risks may be mitigated by staying up to date on common scams targeting attorneys, implementing cyber security measures, and instituting wire transfer protocols that include verifying wiring instructions by telephone before wiring any funds.
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These resources provide information on the common types of cyber threats facing lawyers and paralegals, identify best practices and strategies to manage and mitigate these risks, and provide guidance on what to do in the event of a cyber breach.
