Cybercriminals do not always rely on advanced tools or technical exploits. In many cases, the most effective attacks are the simplest, targeting people rather than systems. Two recent incidents that occurred just four days apart show how devastating a single phone call can be when an attacker successfully impersonates a trusted institution. In both cases, the victims believed they were protecting themselves from fraud when in reality they were handing over the keys to their accounts. This highlights the critical need for awareness about the bank impersonation scam.
The attackers posed as representatives from each company’s bank fraud department. By creating a sense of urgency and authority, they persuaded employees to share multi-factor authentication codes that granted access to corporate bank accounts. Within hours, wire transfers moved nearly all available funds, leaving both businesses with significant financial losses and little chance of recovery.
IN THIS ARTICLE
What happened
Two businesses, just four days apart, fell victim to nearly identical scams. Each received a phone call from someone claiming to be from their bank’s fraud department. The caller warned of suspicious charges and instructed the employee to verify their identity.
The “verification” involved reading back legitimate multi-factor authentication codes that had been texted to the employee. In reality, those codes gave the attacker direct access to the company’s bank account. Once logged in, the attacker initiated wire transfers that drained almost the entire available credit line.
In one case, the attacker even convinced the employee not to check the account for 24 hours, which gave the fraudsters enough time to move the stolen funds beyond recovery.
Why it happened
Social Engineering
The attackers manipulated trust by posing as bank representatives and creating urgency. Employees stayed on the phone and followed instructions rather than independently verifying the caller’s identity.
Lack of Internal Policy and Procedures
There were no clear rules requiring employees to call the bank back using a known phone number before taking action. Without strong SOPs, employees are left to make high-pressure decisions alone.
Insufficient Security Awareness Training
Employees were not trained to recognize and respond to this type of scam. Awareness training would have prepared them to spot red flags and disengage.
Technology Could Not Prevent It
No cybersecurity tools were bypassed or compromised. This was not a technical breach. It was a pure social engineering attack that exploited human behavior.
How It Could Have Been Prevented
Security Awareness Training
Ongoing training helps employees recognize and respond appropriately to social engineering attempts.
Verified Call-Back Policies
Clear procedures requiring employees to independently contact their bank using a verified number could have stopped the fraud.
Banking Fraud Protections
Organizations can request additional protections such as dual authorization, restricted wire approvals, or in-person verification for large transfers.
Defined Roles and Responsibilities
Limiting who has authority to approve wire transfers and requiring secondary approval reduces the risk of a single point of failure.
Key Insights
- Social engineering remains one of the most effective attack methods. Even unsophisticated scams can bypass strong technical defenses.
- Technology alone cannot prevent fraud. Policies, training, and awareness are just as important as firewalls and monitoring.
- Urgency is a common red flag. Attackers often pressure employees into acting quickly before they have time to think or verify.
- Clear policies empower employees. Without SOPs to fall back on, employees are forced to make high-stakes decisions under pressure.
- Fraud protections vary by bank. Many organizations do not take advantage of controls that could drastically reduce wire fraud risk.
- Security is a shared responsibility. Finance teams, IT, and leadership all need to collaborate to reduce exposure to scams like this.
- Employee ownership of security makes a difference. When every team member feels responsible for protecting the organization, response times and decision-making improve.
Have questions about cybersecurity? Reach out to the WingSwept security team at Team_WingSwept@wingswept.com.