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Best Practices for Safely Initiating Wire Transfers

June 27, 2024

Wire transfers are a convenient and efficient way to move money. However, they also carry risks of fraud and unauthorized transactions. To ensure the security of your wire transfers initiated at Jiko or any other financial institution, please adhere to the following best practices.

Verification of Recipients

Confirm Recipient Information:

Double-check the recipient’s name, account number, and bank details before initiating a transfer. Use known and trusted sources to verify the recipient’s information.

Verify with a Call:

Always verify wire instructions by calling the recipient using a known and trusted phone number, not the number provided in the wire request.

Secure Communication

Avoid Email Instructions:

Be cautious about accepting wire instructions via email. Emails can be intercepted and altered by fraudsters. Use secure communication channels provided by your bank for wire transfer instructions.

Use Encrypted Channels:

Ensure that any wire transfer requests and instructions are sent through encrypted channels to prevent interception by unauthorized parties.

Internal Controls

Implement a dual-authorization process for wire transfers, where two separate individuals approve the transfer. Separating the responsibilities for initiating and approving wire transfers can help prevent internal fraud. Jiko makes establishing maker-checker controls easy by establishing user permissions on the dashboard. Learn more about permissions here.

Monitoring and Reconciliation

Monitor your bank accounts regularly to detect unauthorized transactions quickly, and reconcile your bank statements daily to catch any discrepancies as soon as possible.

Employee Training and Awareness

Regular Training:

Provide regular training to employees on wire transfer security and fraud detection. Educate employees about the latest fraud tactics and how to respond if they suspect fraud.

Phishing Awareness:

Train employees to recognize phishing attempts and suspicious communications. Encourage them to report any suspicious emails or requests immediately.

Authentication and Authorization

Strong Authentication:

Use multi-factor authentication (MFA) for accessing banking systems and authorizing wire transfers, and ensure that passwords are strong and updated regularly.

Access Controls:

Limit access to wire transfer capabilities to only those employees who need it to perform their job functions.

Incident Response

Report Immediately:

If you suspect a wire transfer has been tampered with or fraudulently initiated, report it to your bank immediately.

Have a clear incident response plan in place to address and mitigate any potential fraud. Keep in mind that once a wire is sent out, there is a small chance of recovery and your bank is not liable for any losses if this wire was authorized.

Regular Review:

Periodically review and update your wire transfer procedures to ensure they align with current best practices and evolving threats.

By following these best practices, you can significantly reduce the risk of wire transfer fraud and ensure the secure handling of your financial transactions. For any questions or further assistance, please contact your bank’s customer service or your dedicated account manager.

Contact Information

For more information on wire transfer security, please contact Jiko by emailing account.support@jiko.io.

Note: This document is for informational purposes only and should be tailored to your specific needs and banking policies.

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