Fraud Risk Scheme:
International wire transfer fraud generally involves a fraudster who succeeds in initiating unauthorized transfers using interbank payment systems like SWIFT or SEPA.
This fraud often takes the form of identity theft (Business Email Compromise or BEC), social engineering (false transfer orders), or the exploitation of security flaws to inject payment orders into the banking system.
Fraudsters often target high amounts or urgent payments directed toward foreign accounts (mules) for quick withdrawal.
Detection :
Transactions Outside Business Hours: Monitoring transfers initiated at night, on weekends, or on public holidays, outside the usual activity periods for the company or customer.
Repeated Transfers to the Same Beneficiaries: Identification of multiple transfers to the same foreign bank account, especially if it is new or unusual for the ordering party.
Falsified Bank Details: Use of BIC/IBAN codes that do not match the expected bank names or that are associated with entities known for their involvement in fraud.
Prevention :
- Blacklists of Countries/Entities: Automatic blocking or flagging of transactions directed toward geographical areas or beneficiary banks considered to be high-risk for fraud.
Share Your Feedback:
What tools, techniques, and processes are used in your organization to detect and prevent such fraud schemes?
