Criminals Are One Step Ahead—Are You?
Wire fraud schemes are evolving, and cybercriminals are getting smarter. One of the latest tactics we’ve seen is a pre-mediated change to the POC phone number in advance of a planned wire fraud designed to bypass the standard verification process. If you are a hedge fund, private equity (PE) or family office handling high-value transactions, you need to be aware of this new wire fraud tactic.
How the Wire Fraud Phone Number Scam Works
Traditionally, fraudsters infiltrate an email account and wait for a legitimate request to wire funds. Once they are aware of a valid wire activity, they change the wiring instructions hoping the sender won’t double-check instructions.
Financial firms have caught on to this trick and now verify wire instructions via outbound phone call to a Point of Contact at a known number (e.g., not a number provided in e-mail or an invoice). That’s where criminals have recently changed their tactics.
The New Tactic: Changing Phone Numbers First
Cybercriminals now undertake a very simple but very effective approach prior to launching their wire fraud:
- The criminal requests a change to the current phone number of record (before requesting a change to wiring details). A few days or even weeks before attempting to perform a fraudulent transaction, the criminal sends a simple email stating that they have changed their phone
“Due to various personal reasons, I am changing my phone new number. Please update your records with this new number and do not under any circumstances provide it to my wife/husband.”
This change may seem harmless as most organizations will update a client’s phone record without second-guessing it. - The criminal sends fraudulent wiring instructions in response to a valid wire activity. Since the firm has now has an updated (fake) phone number for the client, when they make the call to verify the changes to the wire instructions, the firm unknowingly calls the hacker. The fraudster then “confirms” the transfer, and the money is gone before anyone realizes what happened.
How to Protect Against Wire Fraud Phone Number Scams
- Always verify phone number changes. Just like you validate any changes to wire instructions, apply the same scrutiny to phone number updates.
- Use pre-existing contact information. When confirming a wire transfer, use the phone number stored in your CRM or another secure system—not the one listed in an email footer.
- Educate your team. Train employees to recognize these tactics and never assume an email about a phone number change is legitimate.
Michael Brice, President of BW Cyber, emphasizes:
“Cybercriminals are constantly refining their tactics to deceive even the most diligent firms. Ensuring robust verification processes for both wire instructions and phone contact changes is no longer optional—it’s a fundamental necessity for financial security.”
Final Thoughts: Stay Vigilant
Fraudsters are always adapting, and financial professionals must stay ahead. If you work in real estate, hedge fund, private equity, or family office environment with high-value transactions, be extra cautious when someone claims to have a new phone number.
At BW Cyber, we’ve seen these scams firsthand and help firms defend against evolving threats.
👉 Need expert guidance on preventing wire fraud? Contact BW Cyber today to strengthen your security measures.
Michael Brice
President
BW Cyber, LLC
