
INSIGHTS FOR FINANCIAL INSTITUTIONS	September 15, 2016

CONNECT

Gary Smith, CPA, Partner, Director of Financial Institutions

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Email Compromise Fraud Schemes - FinCEN Advisory

On September 6, 2016, the Financial Crimes Enforcement Network (FinCEN) issued an advisory to guard against a growing number of email fraud schemes targeting financial institution's personal and business customer accounts. Through email compromise, fraudsters are submitting seemingly legitimate instructions to mislead financial institutions and their customers into conducting unauthorized wire transfers. Individuals who conduct large transactions through financial institutions, lending entities, real estate companies, and law firms are the most likely targets of this type of scheme. Since 2013, there have been approximately 22,000 reported cases of Business Email Compromise (BEC) and Email Account Compromise (EAC) fraud involving $3.1 billion.

Red Flags

A few of the red flags identified within the advisory (condensed here) include:

Different language, timing, and amounts than previously verified.
Email address is slightly altered by adding, changing, or deleting one or more characters.
Beneficiary's account information is different from what was previously used.
Instructions include markings such as "Urgent," "Secret," or "Confidential."
Instructions are delivered in a way that limits time or opportunity to confirm authenticity.

Share This Advisory
We encourage financial institutions to share this advisory, which includes scenario illustrations, with employees as part of ongoing cyber security awareness program education. According to the guidance, FinCEN advises sharing the advisory with cyber security departments, risk departments, fraud prevention units, BSA/AML management, AML intelligence units, and AML analysts/investigators. The full advisory is located here.

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