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in real property transactions and communication of explicit instructions about how to safely transfer funds to complete the transaction. One such instruction that 2015 FEO 6 makes clear should be included about how to safely transfer funds is to stop, call, and verify.

Wire fraud is not the unexpected event it was when the FBI first began tracking the BEC scam in 2013 and when the first files were considered by the Grievance Committee in 2015. It has garnered the attention of federal and state law enforcement, regulatory agencies, many lawyers, some real estate professionals and now even members of the public. Over the past five years, law enforcement and regulatory agencies have worked together to inform those whom they regulate and the public about wire fraud, its dangers and how to protect against it. There have been articles in various publications and on websites to inform and educate readers about wire fraud. Real estate professionals have begun including information sheets about wire fraud among the materials provided to buyers and sellers of real estate. Also, the FBI has several public service announcements about BEC scams and other internet crime on its website, most, if not all of which includes information about how to protect against internet crime. Lastly, many continuing legal education and other educational presentations now include information about wire fraud and how to guard against it. In the wake of all of this information about wire fraud, it is becoming increasingly difficult for lawyers and other professionals to claim that they are victims of wire fraud.

There are several definitions for victim, but the one that is most applicable in the wire fraud scenario is one that is tricked or duped. “victim.” Merriam-Webster.com. 2021. https://www.merriam-webster.com (14 October 2021). In 2013, a lawyer could more credibly claim to have been the victim of wire fraud because of the lack of available information about it. This was evident in the manner in which the grievance investigations at the beginning were resolved, with dismissals. In 2021, with all of the education and information provided about wire fraud by law enforcement, regulators, and others, lawyers can no longer fairly claim to be tricked or duped by wire fraud absent a new twist on this almost decade old scheme. Thus, it is logical to conclude that lawyers whose entrusted funds are stolen due to wire fraud will no longer be treated as victims in the grievance process and that the outcome in future cases may be imposition of more serious professional discipline.

The need to protect your clients’ entrusted funds from theft by wire fraud certainly does not feel as urgent as protecting yourself from the spread of a fire that is spotted on your body. However, wire fraud is a perilous situation that has caused harm to many as evidenced by the statistics maintained by IC3. Stop, Drop and Roll has become a ubiquitous phrase in the context of fire safety – so much so, that executing this command during a fire is likely to occur almost instinctively. Lawyers who electronically transfer entrusted funds could benefit from making Stop, Call and Verify a common phrase in the context of wire fraud such that this process is automatically followed anytime there is a request to change the disbursement method for entrusted funds. We can take one step toward that goal now by committing to remember that if you receive an email request seeking to change information relating to payment of funds in connection with a real estate transaction, before taking any action in response, Stop, Call and Verify. It just might be your client’s funds you are saving and possibly, yourself from imposition of professional discipline. WBF

This article first appeared in the Spring 2022 edition of the State Bar Journal.

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