Tag Archives: compliance

Optimizing Security in the Outgoing Wire Process: Essential Strategies

In the current digital age, the escalation of wire transfer fraud poses a significant risk, particularly in the outgoing wire process. This risk is amplified by the inherent immediacy and irrevocability of wire transfers. Vulnerabilities within the outgoing wire process, especially when combined with inadequate internal controls and insufficient fraud prevention training, offer fertile ground for fraudsters. The challenge is exacerbated by the difficulty in recovering funds once they have been transferred, due to the immediate finalization of these transactions. The complexity of fraudulent schemes targeting the outgoing wire process is increasingly sophisticated, often involving deceptive impersonation to manipulate employees into making unauthorized transfers.

Outgoing Wire Process

Risk Identification in the Outgoing Wire Process: Typical Fraud Scenarios

Vendor Impersonation Scenario: Imagine a scenario where a company engaged in the outgoing wire process regularly interacts with an international supplier. They receive an email, seemingly from this supplier, requesting a payment reroute to a new account. This email is a meticulously crafted forgery, perhaps with a minor alteration in the email address (e.g., changing jdoe@titleagency.com to jdoe@titleagency.co). These subtle changes, often overlooked, are typical in schemes targeting the outgoing wire process, like the “Invoice Modification Scheme.”

Executive Email Compromise: Another common risk in the outgoing wire process involves the hacking of an executive’s email account. An employee, responsible for managing the outgoing wire process, receives a transfer request from this compromised account. Mistaking it for a legitimate request, the employee completes the transfer. This type of fraud, impacting the outgoing wire process, is often known as “CEO Fraud.”

Enhancing Security in the Outgoing Wire Process

Adopting a proactive stance is crucial for businesses to safeguard their outgoing wire process. Consulting with treasury management experts can offer invaluable insights into effective fraud prevention strategies for the outgoing wire process. Key practices include:

Verification of Requests: Authenticating each request in the outgoing wire process is vital. This should involve using a verified phone number, not one provided in the suspicious request.

Call-Back Verification: Implementing a call-back verification for new payment instructions or changes in existing ones is a critical security measure in the outgoing wire process.

Dual Control Measures: Incorporating multiple approval layers fortifies the outgoing wire process against unauthorized transactions.

Employee Training: Regular training focused on the outgoing wire process and recognizing email scams is essential for employee vigilance.

Testing Fraud Prevention Systems: Regularly testing the effectiveness of fraud prevention strategies, especially those related to the outgoing wire process, is important to ensure protocol adherence.

Cybersecurity Policies: Developing and updating comprehensive cybersecurity policies, with a focus on the outgoing wire process, is crucial.

Insurance Review
: Ensuring that business insurance covers losses from cybersecurity fraud, particularly in the outgoing wire process, is a prudent step.

Technology’s Role in Securing the Outgoing Wire Process

Integrating advanced technology is key to enhancing the security of the outgoing wire process. Software that detects unusual patterns in wire transfer requests adds an essential layer of protection. Artificial intelligence and machine learning are especially effective in adapting to new fraudulent methods targeting the outgoing wire process.

Collaboration and Knowledge Sharing in the Outgoing Wire Process

Sharing experiences and strategies related to the outgoing wire process is vital for collective defense against wire transfer fraud. Engaging in industry forums and cybersecurity networks can help improve the outgoing wire process across businesses.


In summary, the threat of wire transfer fraud, particularly in the outgoing wire process, is a pressing global business concern. By implementing robust verification processes, educating employees, leveraging technology, and fostering a culture of collaboration and continuous improvement, organizations can effectively mitigate risks associated with the outgoing wire process. Staying ahead of fraudsters by constantly refining strategies and adopting best practices is crucial for the integrity and security of the outgoing wire process in the digital economy.

System 2 Thinking (S2T) is a boutique Title Industry Advisory Firm specializing in Title Insurance Licensing, Artificial Intelligence, Mergers and Acquisitions, Compliance Advisory, Process Improvement, and Technology Rollouts. We have been market leaders for over a decade, successfully solving the industry’s toughest challenges while providing unparalleled advisory services. Our partners range from top title agencies, mortgage businesses, and technology startups to Fortune 1000 companies, driving innovation to fuel business acceleration. No matter who you are or your unique challenge, S2T guarantees fast and efficient solutions. Search our comprehensive services today or contact us for a free consultation!

Now Available: The First National Real Estate Transaction Compliance Manual

System 2 Thinking is excited to announce the publication of The Ultimate Real Estate Transaction Compliance Manual: Your Guide to Laws and Customs in all 51 Jurisdictions, the first national real estate transaction compliance manual. 

Encyclopedic, up to date & practical. The only book of its kind.

Anyone who needs to know all the laws, customs and regulations surrounding a real estate transaction in all 51 jurisdictions will discover up-to-date ShepardizedⓇ citations and references regarding:

  • Title Searches and Examination of the Land Title Records
  • Ownership – Vesting and its Idiosyncrasies
  • Death and its Effect on the Transaction
  • Statute of Limitations
  • Mortgages, Liens & Foreclosure
  • Real Estate Closings
  • Recordation into the Public Records
  • Property Taxes

The Ultimate Real Estate Transaction Compliance Manual will be an essential tool for any company operating on a national scale that is involved in real estate transactions — specifically C-level executives, operations managers, processors and compliance officers at:

  • Real Estate Brokerages
  • Real Estate Portals
  • Title Agencies and Underwriters
  • Banks and Mortgage Companies
  • Asset Management Companies
  • Foreclosure Law Firms
  • Real Estate Law Firms
  • Home Equity Lenders
  • Portfolio Valuation & Risk Analysis Companies
  • Mortgage Servicing Companies
  • Real Estate Services Providers

Buy a Copy

About the Authors

The result of 25 years of work, the manual was authored by Allen Solomon, CEO of NYC-based management consultancy System 2 Thinking; Roberto Abreu, Chief Compliance Officer at System 2 Thinking; and Steve Daigle Sr., Founder and Chairman of Punctual Abstract, one of the largest abstracting firms in the United States.

About System 2 Thinking

System 2 Thinking is trusted by real estate service providers, tech startups and Fortune 1000 companies to consistently deliver transformational outcomes in competitive environments.

We drive innovation and fuel business acceleration with compliance consulting, licensing,  innovation strategies, technology rollouts and process optimization.

Visit our homepage to learn more.