With the Federal Deposit Insurance Corporation’s (FDIC) takeover of Silicon Valley Bank (SVB), we expect a number of entities to begin establishing new bank accounts and updating wire transfer information. This creates opportunities for hackers and criminal organizations to introduce fraudulent wire transfer information in order to steal wire transfers. Failure to verify new wire transfer information prior to transferring money may be considered a failure of financial controls, and each year millions of dollars are lost to this type of fraud. Please keep the following information in mind if you are asked to wire money to a new bank account.

• Never accept new wire transfer information by email alone. Email accounts can be spoofed or hacked.
• Preferably, speak to someone you know by phone, on a phone number that you know and can verify or by a video conference call. Keep in mind that some hackers have engaged in “vishing”—or voice phishing—and have pretended to be an individual in accounting or finance on the phone and verified fraudulent wire transfer information by phone.
• If you are unable to speak to someone you know, make sure that you are calling a verified phone number associated with the company that you are calling. Do not ask the individual to call you, and do not agree to call a phone number that you are not sure is associated with the company requesting to update the wire transfer information. Be very suspicious of anyone who states that they are traveling and are unable to talk by phone.
• If your company banked with SVB and is establishing a new account, make sure you send clear instructions to your vendors/partners/customers about how to verify that they have received the correct information through established channels.

The FBI has been able to stop fraudulent transfers identified within 72 hours of initiation, and we recommend clients to monitor closely and confirm very large transfers to new bank accounts within 24 hours of initiation.