Bankers warn firms to verify urgent payment requests before holiday rush

Business owners should independently confirm the source of any urgent payment request before releasing funds, according to a warning issued this week by Central Pacific Bank. The financial institution released guidance as companies prepare for the year-end surge in transactions and employee time off.

The bank identifies business email compromise as a primary risk during this period. In these schemes, scammers impersonate trusted parties such as executives, vendors, or business partners. They rely on a sense of urgency to prompt quick actions, such as changing banking details or buying gift cards.

Mitzi Lee, Vice President and Director of Fraud at Central Pacific Bank, noted that pressure should not override standard procedures. She stated, "An urgent request should never replace your usual verification process." The bank advises that even a familiar email address does not guarantee the request is legitimate, as fraudsters may hijack valid accounts or create lookalike domains.

The guidance outlines five specific steps for companies to implement before the holidays. First, firms should utilize email security tools with anti-phishing capabilities. Second, they must verify wire transfers, ACH transfers, and banking changes using a trusted phone number rather than the contact information provided in the suspicious email. This check must happen before any funds move.

Further recommendations include requiring two employees to approve financial transactions and changes to payment data. Companies should also train staff to recognize social engineering tactics and executive impersonation. Finally, IT teams should monitor for unusual login activity and unexpected changes to mailbox permissions.

If a compromise is suspected, the bank instructs businesses to contact their lender immediately. Managers should preserve related emails as evidence and report the incident to law enforcement, including the FBI through its internet crime complaint center at ic3.gov.

The advice comes as year-end deadlines and holiday orders increase the volume of digital communications. The bank suggests that a brief pause to verify a request can prevent financial loss during the busy season.