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Richard C. Peck Consulting, LLC & The Philanthropy Guy, LLC


Providing consulting and educational services to nonprofits, donors, and professional advisors related to impactful charitable giving

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Charitable Giving Newsletter

12/20/23 Edition


In This Week's Issue:


Wire Fraud Bad Guys Love December!


Weekly Tips for Nonprofits, Donors, and Professional Advisors

Wire Fraud Bad Guys Love December!

Wire Fraud is happening, but unfortunately, no one is talking about it! And it could be affecting those receiving electronic grants from private foundations and other sources.


December sees a drastic increase in the crime of socially engineered (a.k.a. through people trying to be helpful) wire fraud. As we know, there are always urgent, year-end payments to vendors and grantees. Additionally, firms are short-staffed as teammates may be out-of-office for the holiday and those remaining are stressed out and distracted with their holiday obligations.


It’s with these tailwinds that the bad guy will strike! They have likely been in your e-mail or your counterparty’s e-mail for months, waiting for the perfect time to steal a payment. The payments they target are the ones your organization wants to pay. By using AI, money "mules," compromised e-mails, and people who are helping the bad guys unwittingly, these fraudsters will succeed.


According to Dave Adams and Ryan Castle of Conduit Security, solving wire fraud is 90% financial controls and processes---and only 10% on IT.


Sending money electronically is among the riskiest activities to engage in, so here are Four Safety Tips to Protect You, Your Team and Grantees from Wire Fraud:


  1. Beware of All New, Urgent, and One-Off Requests: When you receive sudden requests that seem urgent and don’t align with regular processes, exercise caution. Wire fraudsters often create a sense of urgency to pressure victims into making hasty decisions.
  2. Always Verify Every New Account and Account Change via Phone Call: Whether it’s a new vendor, a longtime grantee changing accounts, or an unfamiliar transaction, it’s crucial to verify the instructions out-of-band. Reach out to known contacts using trusted contact information to validate the bank detail independently. Double-check any new banking instructions or payment requirements to ensure accuracy.
  3. Source a Known Good Number for the Out-of-Band Verification Call: Don’t rely on the phone number provided in an e-mail or invoice, as it may be manipulated by fraudsters. Use established contact information from previous interactions, a CRM (your database), or the official company website and get transferred into the proper contact.
  4. Consult Your Teammates with Questions or Concerns: You’re not alone! Your colleagues and teammates are essential allies in maintaining security. If something seems suspicious or if you have any doubts, consult your co-workers and leadership. Slow down, ask for help, and use another set of eyes.


Conduit's SaaS solution solves wire fraud in an hour---if you can believe that! Their approach is holistic and provides the best practices and manuals, ongoing security training/education, but most importantly the technical controls (something called the "SaaS workflow automation tool") that ensures the process is scalable, repeatable, and auditable.


If you are interested in getting a free assessment or learning more about the mechanics of the crime, please e-mail Dave Adams at dave@conduitsecurity.com. You can learn about the Founder and CEO, Ryan, below:

Ryan Castle: Founder and CEO of Conduit Security


Prior to founding Conduit Security, Ryan was an FBI agent assigned to cybercrime investigation and was the technical team lead for Palantir's federal law enforcement arm. So, he clearly has seen some serious stuff. Ryan is currently Founder and CEO of Conduit Security, a SaaS ("Software as a Service") solution that provides businesses with security practices to keep electronic transfers secure and businesses in compliance with their banks and insurance providers. 

About - Conduit Security

A Tip for Nonprofits: Do your donors trust you? How do you know? Although nonprofits are among the most trusted entities in the U.S., they are not immune to skepticism. Read more here: Leaders Must Confront Declining Trust in the Nonprofit World — Before It’s Too Late (philanthropy.com)

A Tip for Donors: If you are making a gift of non-cash assets in the amount of $500 or more, you and your accountant will need to file a form called an 8283. Read here for more: Form 8283: Noncash Charitable Contributions: Overview, FAQ (investopedia.com)

A Tip for Professional Advisors: Have you heard of the Net Promoter Score, or NPS? Clients who receive charitable planning tend to rate their advisors significantly higher on key drivers of the NPS. According to a report from Fidelity, advisors who offer charitable planning had an NPS of 67, but advisors who don’t offer charitable planning had an NPS of 49. Read more here on the NPS: https://www.hotjar.com/net-promoter-score/

"The unselfish effort to bring cheer to others will be the beginning of a happier life for ourselves."

~Helen Keller

Richard C. Peck Consulting, LLC and The Philanthropy Guy, LLC

About Rick

1373 Post Road, Unit 7E

Wells, Maine 04090

+1 (603) 387-3897

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