Ask an Accountant: Wire Fraud on the Rise

Ask an Accountant

In 2021, the FBI received 19,954 business email compromise (BEC) complaints with adjusted losses of nearly $2.4 billion, up from $1.8 billion in the prior year – a 33% increase!1 Many of these losses result from wire transfer fraud. Fraudsters have become more sophisticated, and their schemes have evolved to stay ahead of the preventative measures that are developed. Cybercriminals don’t discriminate – both small businesses and public companies are targets and victims of these schemes. In many cases, the wired funds are immediately converted to cryptocurrency by the recipient, making recovery virtually impossible.