What to do When You Are a Victim of Fraudulent Wire Transfers

What is Wire Fraud?

Wire fraud refers to unauthorized transfers or “wires” made from a bank account. Criminals have many different ways of illegally gaining access to your bank account so that they can steal your money in the account by transferring it to another bank account, often in another country. But what to do after your money has been stolen?

Many victims sadly find themselves talking to a bank customer service representative who tells them, “There’s nothing we can do. Your money is gone.” This experience is devastating for those who experience it and it can be confusing figuring out what to do next. While federal law does not protect consumers who have been the victim of wire fraud, many state laws exist to help consumers in the exact situation by requiring that banks reimburse fraudulent wire transfers. Berger Montague helps victims across the country get their money back. Contact us today for a free consultation.

How Wire Fraud Occurs

Wire fraud schemes can be complex and vary widely in methods. Criminals use a variety of methods to gain access and empty your bank account:

1. Phishing Scams: Fraudsters use deceptive emails or websites to trick victims into providing sensitive information, such as bank account details, Social Security numbers, or passwords.
2. Business Email Compromise: Perpetrators impersonate company executives or vendors to deceive employees into making unauthorized wire transfers.
3. Investment Scams: Fraudsters use electronic communications to promote fake investment opportunities, promising high returns with little or no risk, in order to get your bank information.
4. Charity Fraud: Scammers exploit people’s goodwill by using fake charities or disaster relief efforts to solicit donations and get access to your bank account numbers.
5. Telemarketing Fraud: Fraudsters use phone calls to solicit money or personal information under false pretenses, often targeting elderly individuals, to get personal information.

Legal Protections for Victims of Wire Fraud

There are several state laws that exist to help victims of wire fraud. Typically, these state laws seek to hold banks responsible for failing to have the appropriate security policies in place to prevent fraudulent transfers from occurring. In order to bring a case against the bank, it is important for an account holder to be able to prove that they did not initiate the fraudulent transfer or give permission to someone else to initiate the fraudulent transfer.

Despite such laws being in place in many states, banks will often tell victims of wire fraud that there is nothing they can do and refuse to reimburse the money transferred out of the account. If you encounter this situation, it is important for you to contact an attorney that can help protect your rights and get your money back.

Other resources for consumers include:

• Consumer Financial Protection Bureau (CFPB): The CFPB provides resources and support for consumers who have been defrauded, including complaint submission and investigation services.
• Federal Trade Commission (FTC): The FTC is responsible for protecting consumers against fraudulent and deceptive practices. Victims can file a complaint with the FTC, which may investigate and take action.

What to Do if You Are a Victim of Wire Fraud

If you believe you are a victim of wire fraud, it is crucial to act quickly to protect your rights and recover your losses. Follow these steps:

1. Report to Your Financial Institution: Contact your bank immediately to report the fraud and all unauthorized transactions. Request that your accounts be frozen or monitored for suspicious activity. If you report unauthorized transactions promptly, you may be able to limit your liability.
2. Provide Your Bank a Written Account of the Fraud: Some banks may request that you notify them in writing of the unauthorized transfers. Quickly complying with the request can help protect your accounts from further fraud.
3. Gather Evidence: Keep a record of all communications, transaction receipts, and any other documents related to the fraud. This information will be crucial for any investigations or legal actions you pursue.
4. Consult with a Legal Professional: Contact an attorney experienced in wire fraud cases to discuss your legal options. They can help you navigate the complexities of the legal system and advise you on the best course of action.

Preventing Wire Fraud

Prevention is key to avoiding wire fraud. Here are some tips to protect yourself:

1. Protect Your Sensitive Information: Never provide sensitive information such as your social security number, date of birth, passwords, or bank account numbers to people you do not know, either over the phone, email, or text. Instead, verify the identity of persons by contacting them with known contact information and asking if they have contacted you to request information.
2. Verify Requests for Money Transfers: Always verify requests for wire transfers, especially those received via phone, email, or text. Criminals often impersonate companies or people you may be familiar with. Do not send money without first using known contact information to call and verify the request has been made and is legitimate.
3. Educate Yourself: There is a lot of information on the web about how to recognize scams. Use the materials provided by reputable sources, such as the FTC, to educate yourself on how to recognize phishing emails, fraudulent requests, and other common scams.
4. Use Strong Authentication: Implement multi-factor authentication (MFA) for all of your accounts, especially your accounts with financial institutions.
5. Monitor Accounts Regularly: Regularly review your bank accounts for unauthorized transactions and report any suspicious activity immediately. Some banks and laws have deadlines by which you must report fraud.
6. Secure Sensitive Information: Use encryption and secure networks to protect sensitive data from being intercepted or accessed by unauthorized individuals.

FAQs About Wire Fraud

1. What is wire fraud?
   Wire fraud refers to fraudulent “wire” transfers that are made directly from a financial account to another account. Criminals use wire fraud to steal money from bank accounts.
2. How can I recognize wire fraud?
   Regularly review your bank transactions to identity any unauthorized money transfers. It is especially important to review your accounts when you unexpectedly find that there is less money available in your account than you thought or your account is empty. This can happen when you attempt to purchase something using your bank card and the transaction is rejected due to insufficient funds.
3. What should I do if money has been stolen from my account?
   Immediately report any transactions that you did not authorize to your bank and provide any documentation they request. You can also file a complaint with the FTC or CFPB. If a bank refuses to reimburse the money that has been stolen, you should contact an attorney to seek legal advice regarding your rights and options for recovering losses.
4. Can I recover my lost money?
   Depending on the circumstances and the state that you live in, you may be able to recover your losses through your bank. An attorney can help you understand your rights.
5. How long does the bank have to reimburse me?While laws vary by state, banks typically must take action within 10 days of receiving notice from you of fraud on your account. During thus time, the bank will usually conduct an investigation based on the information you have provided to verify that fraud has occurred. The bank will notify you of the results of their investigation.
6. How does the Electronic Funds Transfer Act (EFTA) protect wire fraud victims?
   You may have heard about the EFTA, which is a law that protects consumers that are the victims of financial fraud by limiting their liability for unauthorized transactions. Unfortunately, the EFTA does not apply to fraudulent wire transfers made directly from bank accounts. Instead, it applies to unauthorized transactions on debit or credit cards.
7. What legal action can I take as a victim?
   If the bank fails to reimburse the money fraudulently transferred from your account, the legal remedies available to you will vary by state. If your state protects victims of fraudulent wire transfers, you may be able to file a lawsuit for damages against your bank for failing to reimburse you for the stolen funds. Contact an attorney to find out if you are able to pursue compensation in court.

How Berger Montague Helps Wire Fraud Victims

At Berger Montague, we are dedicated to representing victims of wire fraud. Our experienced team of attorneys works diligently to help victims recover their losses. We understand the complexities of wire fraud cases and are committed to providing personalized legal support throughout the process. Contact us today to discuss your case and explore your options for recovery.