RISK MANAGEMENT

How to Better Protect Yourself and Your Accounts from Wire Fraud

Here’s how to recognize signs of wire fraud and actions you can take to help protect yourself and your family from this type of cybersecurity risk. If you experience wire fraud, prompt action may increase the likelihood of recovery.
Oct 13, 2026 | 4 min read
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Key Takeaways
  • Before transferring funds, confirm wiring instructions over the phone on a publicly sourced or previously used and trusted number.
    Written communication channels (e.g., email, text message) can be highly vulnerable to compromise.
  • Review potential wire fraud red flags with your family and household.
    These include a sudden change in payment instructions, unnatural or unwarranted urgency to complete the payment, the requestor’s unavailability to verify the request via a trusted phone number, and geographic or institutional inconsistencies.
  • Report wire fraud as soon as possible.
    Prompt action can impact the likelihood of funds recovery.

What Does Wire Fraud Look Like?


Wire fraud refers to any scheme meant to defraud another party of money, property, or other assets. Wire fraud can be committed using email, text messages, phone calls, social media, or other methods and is a federal crime in the US. 

“Authorized” vs. “unauthorized” wire fraud


Wire fraud is typically categorized based on who initiates the transaction and this categorization can have legal and recovery implications.

  • “Authorized” wire fraud occurs when the account owner or another authorized individual is the one to initiate the transaction, after being manipulated into thinking they are sending the funds to a legitimate entity (e.g., vendor, family member, title company during a home purchase).
  • “Unauthorized” wire fraud occurs when a transaction is initiated by a third party without consent or authorization. This typically happens when a fraudster gains access to an individual’s login credentials, potentially via hacking, malware, or data breaches.

 

Common methods of wire fraud


Fraudsters are often motivated by large potential monetary gain and may look for targets that are relatively easy to access. While corporations may provide the former, they often implement higher levels of cybersecurity protection that may be more difficult to circumvent. Wealthy families may present an attractive alternative given their larger digital footprints (e.g., property records, business filings, philanthropic activities), frequency of high-value transactions that could be disrupted (e.g., real estate, private equity capital calls, luxury purchases), and fewer defenses.

Business email compromise (BEC) is the primary method of wire fraud, equating to over $3 billion in losses in 2025.¹ BEC wire fraud involves a fraudster impersonating a known contact (e.g., a trusted vendor or a loved one) and manipulating their target into sending funds to a fraudulent account. Read more about BEC in How to Better Prevent Costly Cyberattacks and Identity Theft.

Real estate wire fraud has seen the biggest increase in prevalence year over year (59%), according to the FBI’s Internet Crime Complaint Center.  In 2025, real estate-related attacks equated to $275 million in losses.¹

REAL ESTATE WIRE FRAUD: ALWAYS CONFIRM CHANGES
  • What it is
    Real estate-related wire fraud refers to schemes where a fraudster infiltrates communications about a transaction, providing fraudulent payment instructions to trick a victim into transferring the funds into illicit accounts. This can occur through a vendor’s compromised business email or a fraudster creating a fake account that mimics a vendor’s.
  • What happened
    Jack was finalizing the purchase of a vacation home in South Carolina, communicating with the real estate broker over email. Two days before closing, Jack received an email from the broker providing new payment wiring instructions. Unbeknownst to Jack, the broker’s email had been compromised and this most recent email was fraudulent.²
  • How this impacted Jack
    Because he recognized the email address, Jack put through the wire transfer order using the new wiring instructions. He found out about the “authorized” fraud when the broker called him to check in on the delayed payment.
  • Key takeaway
    When it comes to wiring funds, always confirm changes—especially at the last minute—with the beneficiary via a trusted phone number. If the individual is unable to answer the phone, do not proceed until getting confirmation.

Investment fraud is the costliest type of wire fraud, equating to over $8.6 billion in losses in 2025.¹

INVESTMENT WIRE FRAUD: REVIEW INVESTMENT REQUESTS WITH TRUSTED PROFESSIONALS
  • What it is
    Investment-related wire fraud can occur as investment scams, through business email compromise, or over social media (including LinkedIn). Investment scams typically involve a fraudster impersonating a legitimate financial institution, potentially even posing as an actual employee. They may build trust over time before pitching fake low-risk, high-reward opportunities and pressuring targets into wiring funds.
  • What happened
    Anne received an email she believed to be from her financial institution. The email told her she would need to send funds to unfreeze gains from a previous investment.²
  • How this impacted Anne
    Anne reached out to her investment manager to liquidate some sizeable holdings in order to send the required funds. Luckily, the request was flagged as suspicious by her team and investigated further. It was determined to be a scam and Anne kept her holdings, immediately taking steps to review the interactions she had with the fraudster so she could pinpoint any additional areas of risk (e.g., a compromised email account) and protect herself from future attempts.
  • Key takeaway
    Unusual investment requests, like any ask for additional funds for taxes or other reasons to release gains from a previous investment, should be carefully reviewed with trusted investment professionals.

AI-enabled wire fraud may involve fraudsters using deep fakes and extreme personalization to trick a target into believing they are a trusted vendor or loved one and wiring funds to a fraudulent account.

Impersonation of a company, authority, or government figure can allow fraudsters access to personal information that can be used to perpetrate authorized or unauthorized wire fraud.

IMPERSONATION OF AUTHORITY WIRE FRAUD: SCRUTINIZE INCOMING CALLS FOR LEGITIMACY
  • What it is
    Fraudsters may impersonate a representative from a trusted company, authority (e.g., IRS), or the government. They may request information that can allow them to access accounts and make unauthorized transfers or may instruct the target to make authorized transfers.
  • What happened
    Riley got a call from what they thought was their service provider's tech support. Following the fraudster’s instructions, Riley unknowingly downloaded malware onto their computer. The fraudster was then able to access Riley’s accounts and personal information.²
  • How this impacted Riley
    A few weeks later, Riley noticed a wire transfer on one of their accounts that they had not initiated. After confirming with family members that they had not initiated the transfer, Riley contacted the financial institution to report the fraudulent transfer.
  • Key takeaway
    Incoming calls should be scrutinized for legitimacy. If a call comes in from a vendor or business and they ask for account information, request money, or instruct downloading software, stop the conversation and call a trusted number directly.

Fake sales and e-commerce fraud are increasingly common as ads on social media feeds have become the norm.³

FAKE SALES AND E-COMMERCE FRAUD: DO YOUR DUE DILIGENCE ON A COMPANY YOU HAVEN’T DONE BUSINESS WITH BEFORE
  • What it is
    Fraudsters create fake ads offering items typically at a discounted rate that lead to fraudulent but realistic-looking websites and payment pages.
  • What happened
    CJ was shopping for cars online. He tapped a social media ad for what looked like a great deal on a car he’d had his eye on. The website looked legitimate, so he reached out to the seller. After some online conversation, CJ wired $10,000 to the seller who confirmed the car would be delivered in a week.²
  • How this impacted CJ
    After 10 days and no car delivery, CJ tried to go back to the website to check on his order. The link no longer worked and CJ could not get in contact with the seller.
  • Key takeaway
    Proceed with caution in making purchases outside of trusted channels. If you see an ad that seems too good to be true, it probably is. Do some due diligence on the company or seller before moving forward.

5 Wire Fraud Red Flags and Prevention Methods


Understanding common signs of wire fraud can help to stop it before it happens. Review these common red flags and responses with family members, household staff, and any other individuals who have access to your accounts and information.

  • Red Flag: Audio and/or Visual Concerns
    The call seems to come from a trusted individual, but there is unusual facial movement, audio inconsistencies, limited camera angles, and/or unnatural audio accompanying a request that does not align with typical procedures.
  • Response
    Establish a verification phrase with anyone who has access to your accounts (including family, advisors, and staff). If you find yourself in a situation like the one outlined above, prompt the individual to give you the predetermined verification phrase. If they cannot provide it, end the call.
  • Red Flag: Unavailable Via Trusted Phone Number
    The requesting party is evasive, refuses to take a callback, or claims to be traveling, in meetings or otherwise unavailable to speak on a verified phone line. Evasiveness is a strong indicator of unauthorized account access.
  • Response
    Always place an outbound call to the intended recipient to confirm transfer instructions verbally over the phone. This should be on a publicly sourced or previously used and trusted number. If you receive a new number via email, do not use this number to confirm.
  • Red Flag: Sudden Change of Payment Instructions
    An unexpected request to update banking details, routing numbers, or payment methods—especially for an established vendor or a family member.
  • Response
    Legitimate changes to wiring instructions are rare. Treat any modification as a potential fraud attempt until independently verified.
  • Red Flag: Request for Passwords or Pins
    Typically, businesses and institutions do not ask for a password or pin over the phone or via email.
  • Response
    Do not share passwords or pins even if asked. If someone calls and claims to need your pin, hang up and call back on a publicly sourced or trusted number.
  • Red Flag: Artificial Urgency or High Pressure
    Demands for immediate payment, threats of service disruption, or requests to bypass standard protocols due to a “critical deadline.”
  • Response
    Fraudsters weaponize urgency to induce panic, hoping account holders or authorized individuals will overlook verification best practices.
  • Red Flag: Geographical or Institutional Inconsistencies
    Payment instructions directing funds to an unrelated country or an unusual financial institution (e.g., a small regional bank in a state where the business has no operations or association).
  • Response
    Out-of-pattern routing, especially involving foreign jurisdictions or unfamiliar financial institutions, warrant immediate wariness and heightened scrutiny.

For general prevention methods, see How to Better Prevent Costly Cyberattacks and Identity Theft.

How Do You Report Wire Fraud?


If fraud isn’t caught early or interrupted, recovery of funds becomes increasingly difficult.

If you experience wire fraud, here are immediate actions you can take to help try to recover your funds:

  • Collect as many details as possible, including date, time, device(s), email, phone number(s), transaction amount, bank, instructions received, destination country, any specifics about the fraudster or their contact information.  
  • End any connection with the fraudster and online activity. Turn off WiFi and the device, disconnect all network access (including Bluetooth). Stop using or strictly limit usage of email accounts involved.
  • Alert your financial institution(s) immediately. They can put a temporary lock on your account(s) and be on the lookout for suspicious activity. If the fraud occurred in the last few hours, your bank may be able to halt any transfers still in motion and notify the receiving financial institution, requesting that those funds be locked down.
  • Report the incident to the proper authorities. Consider filing a police report.⁴ Your financial institution may request a police report when returning the funds. Also consider filing an FBI IC3 complaint, if applicable. Place a fraud alert with the credit bureaus (Equifax, Experian, and TransUnion).  

For more information on reporting and recovering from cybersecurity incidents and identity theft, see Identity Theft Recovery: A Step-by-Step Guide.

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¹ FBI IC3 2025

² Scenarios are hypothetical examples for illustrative purposes only and are not based on an actual client.

³ New FTC Data Shows People Have Lost Billions to Social Media Scams, Federal Trade Commission, April 2026

⁴ The availability of police reports to the public may vary by jurisdiction and circumstance.


Disclosures

The risk management process described herein includes an effort to monitor and manage risk, but should not be confused with, and does not imply, a guarantee against loss or low risk.

This material is provided for informational purposes only and does not constitute an offer or solicitation or a recommendation. It does not take into account any individual’s investment objectives, financial situation, or needs. Goldman Sachs does not provide tax or legal advice; please consult your own advisors regarding your particular circumstances. All investments involve risk, including the possible loss of money invested. Past performance is not indicative of future results. The strategies and vehicles discussed may not be suitable for all investors and involve varying degrees of risk, complexity, and tax treatment. Certain information herein may be based on current legislation or interpretations that are subject to change. Examples are for illustrative purposes only. Goldman Sachs offers a range of services through its affiliates; not all products or services are available in all jurisdictions.

This material is provided for informational purposes only and is not intended to be, and should not be relied upon as, tax, legal, or accounting advice. Goldman Sachs does not provide tax or legal advice unless explicitly agreed upon between clients and Goldman Sachs. Clients should consult their own tax, legal, and financial advisors regarding their particular circumstances before making any decisions.

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