Update 9/8/2025:

The State Bar of Texas has received several reports of Texas attorneys being targeted by wire transfer fraud schemes.

In one instance, a significant settlement almost turned into $10 million stolen. As the attorney was close to funding the cash portion of a settlement, opposing counsel received a fake email from someone who created a very similar email address to the attorney’s asking for the remainder to be wired. The scammers had known about a confidential eight-figure settlement. The attorney’s colleague said he would check with the insurance carriers and ultimately that a wire could be made. Fortunately, the scammers made a mistake when they sent the attorney an email, and the attorney picked up on an irregularity. When the attorney called the number with a 713 area code they were given as the bank’s phone number, the scammers called the attorney back from Nigeria. The scammers knew so much detail about the case—they re-created signature blocks, and their wiring instructions looked legitimate. Thankfully their effort at a scam was stopped. The attorney cautioned others to be extremely careful when wiring settlement proceeds.

In another instance, an attorney had the same thing happen but caught it within days of funding. Using what appeared to be a client’s email address that differed by only one letter, the scammers asked the attorney to change the wiring instructions at the last minute. The attorney called the client to verify and was able to avoid the scam.

Another attorney almost had the same thing happen and was within a day or two of sending the money, when thankfully, the opposing counsel called about something else. The attorney mentioned they had the opposing counsel’s wire transfer information, to which the opposing counsel said they never email wire transfer information. That attorney’s policy now is to only send a wire after having a phone call with someone they know to verify the information.

A different attorney was able to dodge being scammed. The scammer posed as a new client with a $100,000 contract claim that they had made look real. But the attorney knew something was off, and they found similar discrepancies in email addresses mentioned by other targets of these types of scams.

At a cybersecurity seminar one attorney attended, they were told about a hacking incident that involved a law firm that routinely handled high-dollar real estate transactions. The hackers were monitoring email, and that is how they knew when a transaction was ready to close and fund. The scammers sent an email to redirect a wire transfer. Because the scammers had been monitoring, they knew enough details to be very dangerous, and the scam worked. If an attorney is public about the high-dollar settlements their firm is handling, they may be an attractive target.

Attorneys who shared their stories offered tips to help avoid these scams:

• Always call to confirm wire instructions. Scammers are sophisticated and know attorneys hold cash in transit, and they are ready to jump on it. Emails are easy to hack and are not secure. Wire and ACH information should never be shared over email.
• Scammers are now using voice cloning technology to sound like someone involved in the case, so be wary of that as well.
• Have an IT security team investigate anything suspicious.
• Always be vigilant.

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