Wire Fraud: Meaning, Examples in International Payments, and Prevention
Do you know the next time your client wires you the payment, the money can end up in someone else’s bank account? It’s called wire fraud, and it occurs not because of a sophisticated hacking technique. But mostly by a fraudster impersonating you.
Time zone gaps, email-heavy communication, large payments, and low chances of reversibility are some reasons that make this payment medium susceptible to such a crime.
The good news is you can prevent wire fraud if you read this blog until the end. It explores the meaning of wire fraud, how the scam works, common red flags, and what actions you must take if you fall prey to it.
TL; DR
- Wire fraud tricks your clients into transferring the payment into the scammer’s bank account instead of yours
- Sending updated bank account details or a fake invoice is the most common technique of wire fraud
- If you fall prey to such a scam, ask your client to contact their bank, and you report the incident at your end as well
- The best way to avoid wire fraud is to ask your clients to verify changes via phone or video call instead of an email
- Using a reliable platform like Skydo also protects you from scams as it shares payment details via link and keeps track from start to finish
Wire fraud meaning
Wire fraud is a type of bank fraud where criminals use electronic communications, like email, phone calls, or messaging, to trick your clients into sending money to a fraudulent bank account.
Scammers intercept the emails and PDF invoices exchanged between you and your client to gain access to the contract details. They take advantage of the absence of face-to-face verification in SWIFT transfers, the time zone difference, and the low chances of payment reversibility to commit the fraud.
How does wire fraud work in international payments?
The most common technique used in international wire fraud is the bank detail change scam. Here is how scammers trick you and your clients in three simple steps:
Bank detail change scam: 3 steps in setting the trap
- It starts with the scammer impersonating you, or your company by using a lookalike email address. They email your client with “updated” beneficiary details just before the payment is due. Often using the words “audit” or “compliance check” to create urgency.
- Your clients, trusting the email came from you, wire the money into the scammer’s account.
- Once the money lands, it is quickly moved or withdrawn so it becomes nearly impossible to recover the money.
The 5-step lifecycle (cross-border edition)
Let’s zoom out to understand the lifecycle of this scam in more detail:
- Recon: The scammer does the groundwork to know your business and collect client names, upcoming invoice details, and the finance executive who handles payments.
- Spoof/compromise email: They create a fake email address that’s identical to yours. Or they hack into your actual email account to send messages that look trusted.
- Insert themselves into the payment thread: After they gain access, they monitor your conversations. They remain hidden and wait for any email exchanges about payments.
- Swap beneficiary details: The scammer emails your client with bank details of a different bank account just before or when the payment is due.
- Cash-out fast via mule accounts: When the wire transfer arrives, the funds are instantly moved to separate mule accounts. This account acts as an intermediary and was created only for laundering this money, leaving no trace.
Common wire fraud scenarios for freelancers, agencies & exporters
Wire frauds work in a recurring pattern; we have listed down the most-common ones below. Share this list with your clients to educate them about these usual scammer tactics.
Invoice Fraud
Scammers send your client a fake PDF invoice. It has the same logo and amount, but your bank details are swapped with the fraudsters. Your client might wire the payment without noticing clues like irregular fonts or weird spacing. The money is credited to the fraudster’s account, and you never receive it.
Business Email Compromise (BEC)
The most common way this occurs is by spoofing an email to your client from their CEO, founder, or you. They use an identical address, like .com swapped to .co. In the email, they demand an urgent, secret wire to your updated account right away. Trusting the email source, your client skips verification and sends funds to the scammer instead of to you.
Payment-Thread Hijack
Hackers infiltrate the email thread between you and your client. They reply to an existing thread with details like following up on the payment. Only this time, the bank account details are theirs and not yours.
Intermediary Bank/Compliance Fee Scams
A SWIFT transfer can take longer to settle because of complexities like intermediary banks. Scammers take advantage of this by emailing your client, saying that the payment is stuck at an intermediary bank.
Further, they suggest the client wire them a compliance fee or OUR/SHA charge to help them release the money.OUR is where the entire transfer fee is borne by the client, and SHA is where you bear the intermediary bank fees.
In reality, the payment was never stuck; the scammers made a commission while representing as you.
Fake Proof of Payment
Fraudsters email you a forged remittance advice or fake MT103 SWIFT message as proof your client sent payment. You ship goods or deliver the work, trusting the email. However, the client didn’t email you, and you never received the payment.
Wire fraud red flags
The following red flags are easy measures to keep your income safe. Share this list with your client simply by copying and pasting it to a Word doc. Also, save a copy on your PC.
- Bank details changed close to the payment date: Any last-minute email containing updated beneficiary details is almost a sure-shot sign that scammers are trying to siphon off money.
- “Urgent today” + “don’t call” + “I’m travelling”: If you see extreme urgency or excuses, like being in a meeting or travelling, do not act without verifying the details with the client/vendor
- Slightly altered domain (.co vs .com) or reply-to mismatch: Always check the email address for subtle changes or a reply-to address that doesn’t match the sender’s official handle.
- Request to pay to a new country or bank unrelated to our contract: A sudden instruction to wire money to a different country or bank is a major indicator of fraud.
- Beneficiary name doesn’t match company name: Always ensure the beneficiary name exactly matches the registered business name. A slight discrepancy can be a sign of a mule account.
- PDF invoice looks “off” (fonts, spacing, or bank block replaced): Always check invoices for strange fonts or unusual spacing. It’s a powerful sign that the bank details section has been digitally altered.
- Unexpected request to “confirm your bank details again”: Any message asking you to re-verify sensitive payment info could be an attacker trying to intercept the active payment thread.
Mini-Rule: If any two of these signs appear, please pause the payment. Verify the request via a recorded video or phone call.
How to prevent wire fraud when clients pay you from abroad
Besides the red flags list, here are some steps you can take at your end to ensure the payment lands in your bank account and not someone else’s
Set up a “no bank changes over email” rule:
Keep this as a non-negotiable policy. Any request to update bank details must be verified through a call back to a saved number, a short video call, or a signed confirmation from an approved domain followed by secondary verification.
Put guardrails inside your invoice & contract
Include a standard clause at the footer or additional notes section: “We will never change bank details over email. Any request must be verified by phone/video on previously shared contact details”. This sets a clear expectation with your clients from the start.
Standardize the payment path
Use one consistent set of beneficiary details. Do not re-type the bank details in the email body. Instead, use a controlled payment flow like a secure portal or link to prevent sensitive bank details from living in vulnerable email threads.
For teams: basic finance controls
Suggest your client to set a maker-checker approval process. The idea is to have 1-2 authorized people to check and confirm benefeciary details. Plus, a 12–24 hour waiting period for beneficiary changes, as this delay alone blocks most fraud.
Email security
Enable MFA (Multi Factor Authentication) on all email and set up domain protections like SPF (Sender Policy Framework), DKIM, (DomainKeys Identified Mail) and DMARC (Domain-based Message Authentication, Reporting, and Conformance). These acronyms sound intimidating, but their role is simple, to secure your domain and protect you from phishing attacks. Moreover, if you’re on Google Workspace, these protections are already being taken care of.
Finally, ask your client to train their team that any bank change request must always be verified.
What to do if your client already sent the wire to the wrong account
If your client has already initiated the payment to someone else’s account, you must act fast.
The First 30 Minutes
• Call the sending bank immediately: Ask the client to contact their bank's fraud department right away to request a recall, hold, or escalation
• Ask for full transfer details: Get all reference numbers and SWIFT/MT103 details, which are necessary for banks and authorities to track the funds.
• Preserve all evidence: Save email headers, the fraudulent PDF invoice, and any WhatsApp or text screenshots as documentation to support the investigation.
Reporting & Next Steps
• File official complaints: Immediately call 1930 and report the incident to the national cybercrime portal.
• Notify stakeholders fast: Alert your internal team and the client’s finance department immediately. This stops further payments, and your team can start checking for security breaches in the communication systems.
Wire fraud vs normal payment delays (so you don’t panic)
A delayed payment is not always a wire fraud. Here’s a simple guide to tell the difference between the two:
Light delays
These mostly occur when the payment passes through multiple intermediary banks. Each of these banks adds additional processing time, therefore delaying the payment. Security and anti money laundering reviews might also delay the payment temporarily. At times, a discrepancy in payment, like an account name mismatch with the receiving person’s name, can also cause delay.
Fraud indicators
Wire fraud has a distinct character. Last-minute bank account detail changes, or trying to create urgency or secrecy to push the client to make the payment are powerful indicators of fraud. Also, if the scammer refuses to verify the details over a phone or video call, such emails must not be entertained.
How Skydo helps you receive international payments more safely
Skydo is a payment platform for Indian freelancers and exporters. With Skydo, you bypass the complexity of traditional wire transfers while keeping your money safe from scammers.
Here’s how it protects you:
- Less back-and-forth on bank details: Because there is no email, there is no repeat confirmation required. Share your Skydo invoice once; clients pay for your virtual account details.
- Clear audit trail: All invoices and payments live on your Skydo dashboard. There is no risk of someone editing your invoice or tracking payments in different email threads.
- Controlled access: Only you manage your Skydo account. Payment instructions stay centralised and are not shared on docs where they could be intercepted.
- Security-first platform practices: Skydo enforces MFA, encrypts all data at rest and in transit, monitors transactions 24/7, and is ISO 27001 and SOC 2 certified, which means it has the same security standards as major banks. Skydo flags any suspicious payments before they settle.
If you receive international payments regularly, Skydo is a great choice to centralize payments and eliminate the email back-and-forth
You get a flat rate and live exchange rates during conversion. After you receive the payment, a free FIRA (and eBRC if you’re an Amazon Global seller) appears on your dashboard automatically to make tax filing easier. If most of your clients are US-based, then Skydo’s InstaLink feature makes it a lot easier and quicker to receive payments through credit cards and ACH Debit.
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