The Scam Gram – Business Email Compromise

WHAT HAPPEND?

• Joe received an email from a contractor requesting invoice payment. A few days later, Joe received a follow-up email requesting confirmation the invoice was received. The email also stated the contracting company was using a new payment system and requested payment be sent via wire, direct deposit, or ACH.
• Joe requested the wire instructions from the contractor and a wire was sent with the invoice payment.
• A few days later, the contractor reached out to Joe stating the invoice payment was never received. Joe informed the contractor a wire transfer was sent three days ago to an account at Bank of America. The contractor informed Joe the business does not have an account at Bank of America.
• Joe received wire instructions via an email he thought had been received from the contractor. In reviewing the previous communications, the email domain had been changed from the contractor’s normal email to the contractor business named spelled out. (i.e. Real email domain was builderco.com. Fake email domain was buildercompany.com)
• Joe discussed the discrepancy with the contractor, and it was determined the contractor’s email had been compromised. Scammers were then sending new payment instructions to customers for invoice payments.

THE RED FLAGS

• Change in email domain used.
• Urgency in payment needed from contractor.
• Email with payment instruction claimed to have a new payment method that required payments be made with limited options.

WHAT TO DO?

• STOP communicating with the individual.
• COMMUNICATE with your financial institution.
• ALWAYS question payment instructions received via email – especially if payment is requested than how you may usually pay the invoice.
• ALWAYS do your own research before sending funds. Wire transfers can typically not be recovered.