How to Prevent EFT Cyber Fraud

There are numerous ways in which fraudsters engage in cyber fraud. However, almost all of them are modern versions of “con games,” in which a fraudster obtains the confidence of a victim, then abuses that confidence.

Cyber fraud comes in many forms with a lot of names, such as “phishing,” “vishing,” “spoofing,” “masking,” and “social engineering.”

1. Avoiding Electronic Fund Transfer (“EFT”) Payment-Related Fraud

Electronic Fund Transfer (“EFT”) refers to any electronic transfers of funds between bank accounts, including ACH and wire transfers.

The simplest way to avoid EFT payment-related fraud is to:

A. Verify Odd E-Mails

Be suspicious of any e-mails that seem odd. Any time that you receive an e-mail that seems odd, call a valid telephone number for the sender, talk to the sender, and verify that the e-mail is valid. Remember: do not call a telephone number on a suspicious e-mail to talk to the sender, as such telephone number is possibly phony.

B.  Verify Business E-Mails Using Gmail, Hotmail, Yahoo, or AOL

Most businesses have their own internet domains and do not use @gmail.com, @aol.com, @hotmail.com, or @yahoo.com to communicate. Any time that you receive a business e-mail from @gmail.com, @aol.com, @hotmail.com, or @yahoo.com, call a valid telephone number for the sender, talk to the sender, and verify that the e-mail is valid. Remember: do not call a telephone number on a suspicious e-mail to talk to the sender, as such telephone number is possibly phony.

C. Verify E-Mails Requesting Changes to a Payee’s Bank Account

Any time a payee asks you to change your records with regard to the payee’s bank account, call a valid telephone number for the payee, talk to a human being in the payee’s Accounting Department, and verify that the requested change is valid.  Remember: do not call a telephone number on a suspicious e-mail to talk to the sender, as such telephone number is possibly phony.

D. Verify E-Mails Requesting Changes to a Payee’s ACH/Wire Instructions

Any time that a payee asks you to change your records with regard to the payee’s ACH or wire instructions, call a valid telephone number for the payee, talk to a human being in the payee’s Accounting Department, and verify that the requested change is valid. Remember: do not call a telephone number on a suspicious e-mail to talk to the sender, as such telephone number is possibly phony.