Why Attorneys Need Wire Fraud Protection
Wire fraud is one of the fastest-growing financial crimes targeting law firms. Attorneys who handle real estate closings, escrow accounts, or large fund transfers are prime targets for cybercriminals. Criminals use phishing emails, spoofed addresses, and fraudulent wiring instructions to divert client funds. The consequences are severe: lost funds, damaged client relationships, reputational harm, and legal liability.
The FBI reports that billions of dollars are lost annually to Business Email Compromise (BEC) and wire fraud schemes. Law firms, due to their role in high-value transactions and client trust, are at heightened risk.
What Wire Fraud Insurance Covers
Refine Risk provides wire fraud protection tailored to attorneys and law firms. Coverage may include:
- Social engineering and phishing attacks – protection when staff are tricked into sending funds
- Business email compromise (BEC) – coverage for losses from hacked or spoofed email accounts
- Misrouted wire transfers – reimbursement for diverted or stolen client funds
- Escrow and trust account theft – protection for funds held in client trust accounts
- Reputational defense – crisis management and client communication support after an incident
Why Law Firms Are High-Value Targets
- Large transactions – especially real estate, mergers, and settlements
- Trusted communications – attorneys’ emails are considered credible by clients and counterparties
- Multiple stakeholders – real estate deals often involve attorneys, lenders, agents, and title companies, creating weak links
- Limited internal controls – small and mid-sized firms often lack robust cybersecurity systems
These factors make attorneys an attractive target for fraudsters who exploit email communication and transaction urgency.
A Real Claim Example
A real estate attorney received wiring instructions that appeared to come directly from their client. The email domain was spoofed, and the message looked authentic. Trusting the instructions, the attorney’s office completed the transfer before discovering it was fraudulent. The funds were unrecoverable, the client sued, and the firm’s reputation suffered.
With wire fraud protection insurance, the firm would have had financial support to replace the lost funds, coverage for legal defense, and resources to manage client communication. This case illustrates how even diligent attorneys can fall victim to sophisticated fraud schemes—and how the right coverage provides a vital safeguard.
How Refine Risk Protects Attorneys
Refine Risk structures coverage specifically for attorneys in the Tri-State area. Our solutions:
- Integrate with existing malpractice and cyber liability policies
- Address escrow account obligations and fiduciary duties
- Provide coverage limits aligned with transaction values
- Deliver advisory support for incident response and claim handling
- Include proactive risk management guidance to reduce exposure
Who Needs Wire Fraud Protection
- Real estate attorneys – handling closings, escrow accounts, and wiring instructions
- General practice firms – with occasional escrow or settlement accounts
- Title companies and law firms working together – requiring shared compliance
- Multi-attorney firms – where multiple points of email access increase risk
Risk Scenarios We Address
- A hacker spoofs a client email, providing new wiring instructions to an associate
- A paralegal receives a fraudulent request appearing to come from a partner
- A law firm’s escrow account is drained after email credentials are compromised
- A client sues the firm for failing to safeguard funds during a real estate closing
Each of these scenarios has happened to firms across the United States. Without proper protection, the financial loss often exceeds the firm’s ability to recover.
Regulatory and Client Considerations
Attorneys in New York, New Jersey, and Connecticut face strict fiduciary duties regarding escrow accounts. Courts and bar associations are clear: attorneys are responsible for safeguarding client funds. Wire fraud insurance provides financial backstop and compliance support in the event of a loss.
Clients increasingly expect law firms to carry cyber and fraud protection. Firms that demonstrate proactive coverage strengthen client trust and competitive positioning.
Serving the Tri-State Legal Community
Refine Risk provides insurance solutions for attorneys and law firms across:
- New York City and all boroughs
- Westchester and Rockland Counties
- Long Island
- Northern New Jersey (Bergen, Essex, Morris)
- Connecticut (Fairfield and New Haven Counties)
Our advisors understand the intersection of law, compliance, and insurance. We build policies that match local legal requirements and the realities of your practice.
Why Work with Refine Risk
- Deep understanding of legal industry risks
- Local expertise with national carrier access
- Alignment with malpractice and cyber liability coverage
- Direct advisor access with ongoing support
- Annual reviews to ensure coverage keeps pace with transaction volume
We are more than insurance brokers—we are strategic partners for attorneys protecting client funds and professional reputations.
How to Get Started
- Schedule a consultation with a Refine Risk advisor
- Share details of your practice and escrow account structure
- Review your current malpractice and cyber liability policies
- Receive a tailored wire fraud protection proposal
Protect your clients, your funds, and your reputation. Request a consultation today with a Refine Risk advisor to ensure your law firm is protected against wire fraud.
Related Pages: Cyber Liability Insurance | Business Insurance Overview