Don Nokes of NetCenergy, an outsourced IT service provider, explains the emerging threat and provides this example:
Once the bad actors learn (possibly from first hacking a firm’s email) that a financial transaction is taking place, they send an AI-generated voice message to confirm where to send the funds. The fund transferer hears the familiar voice confirming the financial transfer and sends the money.
This threat applies to all law firms, but we see particular vulnerabilities for those handling corporate or residential real estate transactions involving lots of parties, including title companies, mortgage brokers, clients, realtors and more.
According to cyber security company Aura, in 2021 alone, more than $756 million was stolen in wire transfer scams that were intercepted and sent elsewhere. Law firms are well advised to be particularly vigilant when using wire transfers, especially with the uptick in AI-generated fraud.
Read more at Michigan Lawyers Weekly.
