Trust Account Fraud Prevention Starts Here

When you manage a trust or escrow-style account, you’re doing more than processing transactions; you’re safeguarding money that belongs to someone else.

Whether you serve clients, beneficiaries, tenants, or community members, the responsibility is personal. These aren’t just balances on a screen. They represent livelihoods, legacies, and obligations that matter.

Understanding why these accounts are often targeted and how to reduce risk is the first step.

Why Trust Accounts Are Targeted

Trust accounts often share characteristics that make them attractive to fraudsters. They frequently:

• Maintain higher balances.
• Process checks, wires, and ACH transactions.
• Involve multiple authorized users.
• Require time-sensitive payments.

None of these are flaws; they’re simply the realities of fiduciary work. But together, they can increase exposure to check fraud, wire redirection scams, Business Email Compromise (BEC), and account takeover attempts. Fraud risk remains widespread. According to the 2024 Association for Financial Professionals® (AFP) Payments Fraud and Control Survey Report*:

• 79% of organizations experienced attempted or actual payment fraud.
• 63% identified Business Email Compromise as the leading fraud method.
• 63% experienced check fraud.

Even a single fraudulent transaction can disrupt operations, delay obligations, and damage the trust you’ve worked hard to build. The good news is that with the right safeguards in place, these risks can be significantly reduced before funds ever leave your account.

Prevention Begins Before Money Moves

Effective fraud prevention for trust accounts begins with a solid structure. When a trust account is opened, your First International Bank & Trust (FIBT) expert works with you to establish a clear framework for oversight and management. That includes:

• Verifying trustees and authorized signers.
• Reviewing required documentation.
• Clarifying the account’s fiduciary purpose.
• Clearly defining authority roles.

These foundational steps help ensure access is limited to properly authorized individuals, roles and responsibilities are documented, the account aligns with its intended fiduciary purpose, and that the clear authority reduces confusion.

Add Layers of Protection

Once your account is active, fraud prevention becomes an ongoing commitment.

Layered controls help strengthen oversight without slowing your work. FIBT offers treasury management tools designed to support both security and efficiency, including:

• Dual control for transaction approvals.
• Positive Pay to verify checks and ACH activity.
• Secure wire and ACH authentication procedures.
• Real-time transaction alerts and monitoring.

These safeguards increase visibility, reinforce accountability, and help stop issues before they become losses. More importantly, they support your responsibility to manage entrusted funds with care, diligence, and confidence.

Protect What You’ve Been Entrusted With

Fraud prevention isn’t a one-time checklist – it’s part of responsible fiduciary stewardship. Regular account reviews, thoughtful separation of duties, and staying informed about emerging fraud trends all play a role.

FIBT’s Treasury Management team partners with attorneys, municipalities, private practices, and businesses of all sizes to implement layered safeguards tailored to the way you manage entrusted funds. If you oversee a trust account or hold funds on behalf of others, we invite you to connect with your local FIBT Treasury Management specialist. A proactive conversation today can help protect what matters tomorrow.

*Statistics sourced from the 2024 Association for Financial Professionals® (AFP) Payments Fraud and Control Survey Report.