FBI's Tools for Recovering Wire Transfer Fraud: Breaking the Escrow and Financial Fraud Kill Chain
Download MP3 Episode Show Notes:
- Introduction to Online Fraud and Scams
- Many clients fall victim to online fraud, losing money through wire transfers to fraudulent parties.
- Common types include escrow fraud (in real estate transactions) and fake investment schemes.
- The Financial Fraud Kill Chain (FFKC)
- The FBI has a procedure called the "Financial Fraud Kill Chain" that can help recover funds from fraudulent wire transfers.
- This procedure is not well known, and sometimes even banks are unaware of it.
- Requirements for the FFKC
- The wire transfer must meet specific criteria:
- The amount must be $50,000 or more.
- It must be an international transfer (sent overseas).
- The transfer must occur within the last 72 hours (though exceptions may apply).
- Information required to initiate the process:
- Victim's details (name, location).
- Original bank details and account numbers.
- Transaction details, including the SWIFT code and the recipient's bank details.
- The wire transfer must meet specific criteria:
- Fincen's Rapid Response Program
- The Financial Crimes Enforcement Network (Fincen) manages a rapid response program that has recovered over a billion dollars for U.S. victims.
- This program works through the Financial Intelligence Unit (FIU) and activates the financial fraud kill chain.
- Success rate of the program is 74%, with more than 2,000 incidents responded to.
- Types of Fraud and How It Happens
- Fraudsters often manipulate banking systems to redirect funds to accounts they control, especially in real estate transactions.
- Criminals spoof or hack emails from title companies and send fake wire instructions to victims, causing them to wire money to the wrong account.
- How to Protect Yourself
- Before sending a full payment, consider sending a small test payment (e.g., $20, $200, $1,000) to verify the account.
- Contact the title company directly by phone or in person to confirm they received the test payment.
- Conclusion
- If you fall victim to fraud, the FFKC offers a potential way to recover your money.
- To initiate the process, your transaction must meet the criteria mentioned.
- For more information or to arrange a consultation, contact the company.
