2,000 U.S. People a Day are Being Victimized by Wire Fraud
The stolen funds are benefiting criminals across the globe, enabling their operations and harming innocent individuals.
Together, We Can Stop Wire Fraud
Wire Fraud Prevention Act
1. Enhance Verification Standards
One of the primary measures in the Wire Fraud Prevention Act is to require financial institutions to enhance their verification standards for wire transfers. This includes ensuring that both the account number and the beneficiary’s name match before completing a transaction. This change would address a significant loophole in the current system where only the account number is verified.
Key Actions:
Mandatory Name and Account Matching: Financial institutions must implement systems to verify that the beneficiary name matches the associated account number.
Real-Time Alerts: Banks are required to send real-time alerts to customers for any wire transfer requests above a certain threshold.
Multi-Factor Authentication: Enhance security by requiring additional authentication for wire transfers, such as one-time passcodes sent to the account holder.
2. Increased Transparency and Accountability
The Act aims to improve transparency and accountability among financial institutions handling wire transfers.
Key Actions:
Detailed Notifications: Banks must provide detailed transaction notifications to customers, including the beneficiary’s name and account details.
Audit Trails: Require financial institutions to maintain comprehensive audit trails for all wire transactions to aid in investigations.
Reporting Requirements: Financial institutions must report suspicious transactions to federal authorities within a specified timeframe.
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3. Victim Assistance and Recovery
To support victims of wire fraud, the Act establishes a framework for recovering lost funds and assisting affected individuals.
Key Actions:
Fraud Victim Fund: Establish a fund to assist victims in recovering their funds, financed through penalties imposed on non-compliant banks.
Dispute Resolution Mechanism: Create a streamlined process for victims to dispute fraudulent transactions and seek redress.
Bank Liability: Hold financial institutions accountable if they fail to adhere to the enhanced verification standards.
4. Strengthening Law Enforcement Collaboration
The Act promotes collaboration between financial institutions and law enforcement agencies to prevent and combat wire fraud.
Key Actions:
Information Sharing: Encourage real-time information sharing between banks and federal agencies about known fraudsters and fraudulent accounts.
Subpoena Powers: Grant law enforcement enhanced subpoena powers to trace and recover stolen funds.
Task Forces: Establish dedicated task forces to investigate and prosecute wire fraud cases.
5. Public Awareness Campaigns
To reduce the prevalence of wire fraud, the Act mandates public awareness campaigns to educate individuals and businesses about wire fraud prevention.
Key Actions:
Educational Programs: Develop educational materials for consumers about the risks of wire fraud and prevention techniques.
Community Outreach: Partner with community organizations to spread awareness about wire fraud schemes.
Online Resources: Create a centralized online portal with resources for victims and tips for avoiding wire fraud.
Stopping wire fraud through actionable solutions.
Supporting victims and helping them recover losses.
Advocating for changes to protect all Americans from this growing threat.
