On March 10, 2023, the US Federal Deposit Insurance Corporation
took control of the assets of Silicon Valley Bank (SVB). In light
of SVB's closure, many venture firms and emerging companies
are establishing new accounts with other banks, and they are
sending and receiving updates to the details of their wire
transfers so they can continue to make and receive payments. This
is legitimate and necessary, but many companies are targeted for
fraud when engaged in this process, and it is important for
companies to remain vigilant throughout.
Most businesses that regularly send and receive funds
electronically have already heard about the risk of wire fraud
scams in which an intruder changes wiring instructions and diverts
funds to its own account. But detecting and preventing these scams
— and effectively managing the situation when a scam does
occur — has proven challenging.
