With the Federal Deposit Insurance Corporation’s (FDIC) takeover of Silicon Valley Bank (SVB), we expect a number of entities to begin establishing new bank accounts and updating wire transfer information. This creates opportunities for hackers and criminal organizations to introduce fraudulent wire transfer information in order to steal wire transfers. Failure to verify new wire transfer information prior to transferring money may be considered a failure of financial controls, and each year millions of dollars are lost to this type of fraud. Please keep the following information in mind if you are asked to wire money to a new bank account.
The FBI has been able to stop fraudulent transfers identified within 72 hours of initiation, and we recommend clients to monitor closely and confirm very large transfers to new bank accounts within 24 hours of initiation.
If you suspect you have been a victim of wire fraud, Wilson Sonsini has been successful in helping clients claw back money or settle potential claims. For any questions, please contact Beth George (bgeorge@wsgr.com) or Megan Kayo (mkayo@wsgr.com).