How Can Financial Advisory Firms Prevent Business Email Compromise and Wire Fraud?

Financial advisory firms can reduce business email compromise and wire fraud risk by combining multi-factor authentication, email security, transaction verification procedures, employee training, account monitoring, and strict access controls. Technology alone is not enough. Firms should also establish procedures for independently verifying sensitive financial requests.

Because financial professionals regularly communicate about accounts, transfers, investments, and personal financial information, a compromised mailbox can provide attackers with valuable information for convincing fraud attempts.

What Is Business Email Compromise?

Business email compromise occurs when attackers impersonate or take control of a trusted email account to manipulate employees or clients.

Common examples include:

• Fraudulent wire instructions
• Fake payment requests
• Executive impersonation
• Vendor invoice fraud
• Client impersonation
• Password-reset phishing

1. Require Multi-Factor Authentication

Multi-factor authentication provides an additional security layer when an employee password is stolen.

• Require MFA for email
• Protect administrator accounts
• Require MFA for remote access
• Review risky login activity
• Train employees about fraudulent MFA prompts

2. Use Advanced Email Security

Modern email security should detect more than obvious spam.

• Phishing detection
• Malicious attachment scanning
• Suspicious link protection
• Impersonation detection
• Domain protection
• Threat monitoring

3. Independently Verify Financial Requests

Sensitive requests should be verified using a trusted communication method that is separate from the original email.

• Use known telephone numbers
• Avoid relying on contact information contained in the suspicious request
• Require secondary approval where appropriate
• Verify unusual changes in payment instructions
• Document verification procedures

Employees should be encouraged to slow down when requests involve money, credentials, or sensitive client information.

4. Train Employees to Recognize Social Engineering

Attackers often rely on urgency, authority, and trust rather than technical exploits.

• Phishing awareness training
• Simulated phishing campaigns
• Executive impersonation examples
• Wire fraud scenarios
• Suspicious request reporting

5. Monitor Email Accounts for Suspicious Activity

Compromised accounts may show warning signs before fraud occurs.

• Unexpected forwarding rules
• Unusual login locations
• New mailbox permissions
• Suspicious application access
• Unexpected password resets

6. Limit Administrative Access

Employees should not receive administrator permissions unless their role requires them.

• Separate administrator accounts
• Use least privilege
• Review permissions regularly
• Remove access immediately when employment ends
• Monitor privileged activity

7. Maintain an Incident Response Procedure

Firms should know what to do immediately when email compromise is suspected.

• Disable compromised sessions
• Reset credentials
• Review mailbox rules
• Preserve security logs
• Investigate affected communications
• Contact appropriate internal and external advisors

How Our Compliance and Cybersecurity Package Helps

1-UP IT Consulting helps financial advisory firms strengthen the technology and processes used to protect sensitive client information.

• Compliance management assistance
• Microsoft 365 security
• Vulnerability scanning
• Penetration testing
• Security risk assessments
• Strategic cybersecurity guidance

Our Experience Supporting Financial Advisory Firms

1-UP IT Consulting supports financial advisors and wealth management firms throughout Frederick, MD and surrounding areas with cybersecurity, compliance management, email protection, strategic IT planning, and ongoing security oversight.