The Expert Podcast

Many clients that contact us have been a victim of some type of online fraud or scam and have wired money. To a party And then realize later that that wire transfer was fraudulent Sometimes it's an escrow fraud where people send money for a real estate transaction to their title company, and find out that the email they received from their title company was fraudulent and they actually wired their closing funds, their purchase money their down payment. To some scammer or fraudster. Sometimes it's an investment that turns out it's a scam. Well, In the past it's always been a lost cause or a hope that you can't get any money back Well, A lot of people don't realize the FBI. Has it procedure that can be used. To recover. Funds that are already sent out Sometimes banks don't even know about this.

It's called the financial fraud kill chain. And it's a procedure where the FBI. Uses a certain banking procedure. To reverse. Funds that are sent to a fraudster and here's some of the details on it. It's performed by financial institutions. For victim. Fund recovery, normal bank procedures. Should be conducted. And the financial fraud kill chain can only be implemented If the fraudulent Ryer transfer meets the criteria. It has to be 50,000 or above. So if you've only lost 49,900 you can't do this but if you've lost 50,000 or above you can, if the wire transfer was international if it was sent overseas which many of these scammers do you also have to put in a swift call recall notice, and the wire transfer must have occurred within the last 72 hours

However, we have seen. Where sometimes that last criteria. Can be. Handled another way So if it's been longer than 72 hours don't give up hope. So what do you have to do? In order to initiate the financial fraud. A kill chain. You have to give the following information to the FBI. From the bank, the name of the victim location. original bank name. account numbers and then where the money went to the swift code has to be included. The amount and transaction. And if there's any other information, For example forwarding information A lot of these wire transfers have an FFC which is where they forward the money to afterwards. This is the basics of the FF KC.

Where does this come into play Well FinCEN.has this rapid response program, which is part of this. And it's recovered more than a billion dollars for us victims And this was back a year ago There's even been more since then. What is the success rate? Well first let's look at the flow. The victim of the cyber fraud files a complaint with law enforcement. Law enforcement refers it to FinCEN And then FinCEN works with the, FIU the investigative unit. To activate the rapid response. And when that happens. It goes into their kill chain system. The financial fraud kill chain. Success rate is 74% They have responded to 1700 incidents Now this is going back to 2021 which is for the prior year. But there's been more than 2000 incidents now. With a 74% success rate of recovering funds using this FFKC.

What type of fraud does this uncover Well? Criminals use the banking system. To deceive a party to send funds using wire transfer. To the wrong location. they… Send false wire instructions from a criminal attempting to redirect legitimate payments to a bank account controlled by fraudsters. And this happens many many times with… real estate transactions. If you have purchased a property and you have a closing. Scheduled with a title company. The title company normally sends you closing instructions where they give you wire transfer information account routing numbers and you wire your down payment. To that. Account.

Well what happens is the criminals will insert themselves into your email. Chain. Though spoof the email they'll hack the email and they'll tell you. Here's your wire instructions It'll have all the, the logo's contact information for that company and you wire your money And now it's gone. This FFKC financial fraud kill chain is a way to attempt to recovering that money from a fraudulent wire transfer. Another way to avoid it is before you send your whole down payment. Send a small test. payment we've talked about this before Sen 20 bucks a hundred bucks thousand bucks. To the wire contact the title company directly by phone or walking in the door, asking him if they received it If they did now you know that account number is good And then you can wire the rest of it using the same information But if you have fallen a victim. Be aware of this F FKC financial fraud kill chain as a means to recover the money. And you can use the information in the links below or you can arrange a consultation with our company. using tele client. But this is a way to attempt to recover money. Again has to be over $50,000 and the fraudster has to be international not in the U S.