Wire Fraud: Protecting Trust Accounts From Social Engineering and Business Email Compromise (BEC)

Is your team handling complicated wire instructions, escrow deposits, settlement funds, or even real estate transfers? Are you worried that a forged email could redirect client funds to a criminal’s account? Do you ever feel uncertain about the authenticity of last-minute wire transfers or unexpected financial instructions sent via email? If this is your current situation, you need a reliable cybersecurity plan that protects your trust accounts.

Cybercriminals are aggressively targeting legal practices because trust accounts hold large sums of money. A 2023 NCSC report further warns that law firms are attractive targets for Business Email Compromise (BEC) attacks because invoices and payment details are often handled via email. That means your practice needs a strong security framework that verifies every financial transaction and shields you from social engineering attacks.

After helping hundreds of clients strengthen their cybersecurity, we have developed a simple plan that any firm can apply. Below is the framework we recommend for protecting your trust accounts and keeping your clients’ funds secure.

Practical Ways to Protect Trust Accounts

Identify Weak Points 

To secure your firm, the first step is to identify and map out your vulnerabilities. Attackers study how law firms communicate, how clients send instructions, and where approvals break down. 

Wire fraud rarely happens by accident. Take a look at how wire instructions are received and stored, as well as how fast transactions are processed. You can also check whether remote employees use secure channels and what access third-party vendors have to financial systems.

Build Stronger Security Practices Around High-Value Transactions

Once vulnerabilities are identified, your next step is to reinforce the core systems that protect financial communications.

Use Multi-Factor Authentication (MFA)

A report by Microsoft reveals that MFA lowers the likelihood of account compromise by 99.22% across all users and also reduces the risk by 98.56% even when credentials have been exposed.

MFA adds a layer of security beyond just a password, requiring a second form of verification, such as:

• A code sent to a mobile device
• A hardware token 
• Biometric check

Enforce multi-factor authentication for all email accounts and financial platforms used by your firm. This will ensure that you can protect sensitive client information, such as financial data and internal communications, while also strengthening your firm’s overall cybersecurity. 

Keep Your Email and Security Tools Updated

Criminals often gain an advantage through unnoticed weaknesses, such as outdated mailbox or security systems. They can use these channels to access company details, which can be used to impersonate executives and authorize fraudulent wire transfers. 

Consider updating email servers, anti-malware tools, mobile devices, and operating systems. This will help close the door to many common BEC attacks.

Encrypt Sensitive Files and Communications

Wire instructions should never be transmitted or stored unprotected. Encryption ensures that any intercepted document is unreadable without the proper credentials. This practice applies not only to documents stored on internal servers or cloud platforms, but also to any files exchanged with clients, partners, or third-party vendors. 

Limit Access to Trust Account Information

Not every team member should view or change wire instructions. You should only grant wire instruction permissions to employees whose job responsibilities require it, track who views or modifies wire instructions to detect potential errors or unauthorized actions, and remove permissions immediately when staff change roles, leave the firm, or no longer require access. You can also schedule frequent audits to ensure access aligns with current roles and responsibilities.

Learn the Tricks Used in Social Engineering and BEC Scams

Social engineering remains the most common tactic used in wire transfer fraud, since it targets humans rather than technical vulnerabilities. Cybercriminals often impersonate clients, opposing counsel, real estate agents, or even senior partners to manipulate your team into releasing funds. 

Cybercriminals may quietly monitor email threads for weeks, then send a perfectly timed message. Others may create domains that differ by only one character, send urgent requests claiming a deadline is at risk, or attach malware. Some attackers even pose as bank representatives. 

To protect your practice, your team needs to be trained on how to:

• Recognize urgent or unexpected financial requests that pressure them to act without verification
• Check for slight domain misspellings or altered display names in email addresses
• Confirm any “updated” or last-minute wiring instructions through a phone call
• Avoid clicking unfamiliar links or downloading attachments that appear out of context
• Question changes to account numbers, payment timelines, sender identity, or transfer amounts
• Cross-check with multiple team members before acting
• Watch for inconsistencies in language, formatting, or tone in emails that may indicate a spoofed sender
• Flag suspicious requests immediately and escalate concerns

Most importantly, encourage open communication across your team as well. If something feels unusual or inconsistent with past behavior, it should be reported immediately. Quick reporting can stop fraud before money leaves your trust account.

Hire a Professional to Help You Protect Your Trust Accounts

A single successful wire fraud incident could cause irreparable damage to your law firm. The good news is that at Digital Crisis, we can help you develop strong defenses against wire fraud and BEC attacks. Our team will: 

• Assess your communication and transaction risks
• Strengthen your systems with multi-layered security
• Train your staff to detect social engineering tactics
• Include verification systems in your workflows 
• Build a response plan to minimize damage

Don’t wait until it’s too late. Contact us today to book a consultation.