2024 was a landmark year for Conduit. We added almost half a trillion assets we are protecting, integrated with other software partners in the back-office tech stack, safeguarded thousands of transactions, and thwarted dozens of cybercriminals. We retained our zero-loss track record in 2025 and ss the world’s top firms fight wire fraud, we’ve had a front-row seat to this growing crisis—and unfortunately, things are about to get much worse in 2025 for those who are not prepared…
The Rise of AI in Fraud: A Growing Threat
Cybercriminals are using artificial intelligence (AI) faster and more effectively than the good guys. AI tools are rapidly evolving, making crimes like Business Email Compromise (BEC) and wire fraud significantly more efficient. Criminals are leveraging these technologies to deceive and manipulate targets with an increasing level of sophistication.
We believe wire fraud and related losses are grossly underreported—by as much as 3x to 5x relative to the FBI’s statistics. In 2024, we anticipate losses to hit nearly $4 billion, and by 2025, that number could soar to $6 billion. The rise of AI-driven fraud isn’t just a prediction; it’s already happening.
Focus on Cash Controls: The ODD Perspective
Our colleagues in the Operational Due Diligence (ODD) industry are sounding the alarm: cash controls and protection are top priorities for 2025. If your firm is raising a fund or engaging with institutional investors, having robust wire fraud prevention in place will be crucial for building trust and credibility. In fact, a single reported loss can derail an ODD process and potentially harm investor confidence in your operations.
At Conduit, we understand that securing financial transactions and mitigating wire fraud is not just a security measure—it’s an essential part of your business plan.
Wire Fraud and Insurance: What’s Covered?
When it comes to insurance coverage for socially engineered wire fraud and voluntary parting, we don’t expect any major shifts in 2025. Voluntary parting, where funds are sent to a fraudster under false pretenses, is typically either not covered by insurance or subject to severe limitations. Make sure you ask your insurance partners about available coverage for voluntary parting.
In Conclusion: Proactive Protection is Key
Wire fraud is growing at an alarming rate, and so are the financial losses. These crimes have the potential to severely impact your firm’s reputation, especially with institutional investors and their ODD partners. Socially engineered wire fraud—where fraudsters trick employees or executives into transferring funds—is particularly difficult to defend against, but it’s not impossible.
The solution? Proactive, preventative measures. Investing in wire fraud protection software. Conduit Security has a proven and scalable approach to safeguarding you, your firm and its investors from the evolving threats of the wire fraud bad guys. Don’t wait until you are a victim, act now to protect your business.