What to do if Money is Diverted to a Fraudster’s Account?

  • November 07, 2022
  • Raymond G. Leclair

There are multiple scenarios whereby fraudsters will attempt to have you wire funds to a different account than the one that you had intended to fund. Unfortunately, some of those attempts are successful. Here are some tips to assist you if such a fraud happens to you, your clients or someone you know.

1. Contact the bank:

  • The person who initiated the wire should ASAP report the diversion to the bank from where the wire was initiated, requesting that they stop the wire. This is not always possible as wires are usually instantaneously dispatched and irrevocable, however, they may get caught in the financial institution’s suspicious transaction filters and be pending.
  • Request that the initiating bank contact the receiving bank to stop the wire. Again, it may have been dispatched but might be pending. Request that they contact the bank they sent the wire to and so on until the trail disappears or the money is found and frozen.