• Posted by: Eng. Donya Bino
• January 11, 2026

Major Financial Fraud Incidents

Most people picture financial fraud as a hacker breaking into a system.
That is rarely how it happens.
In real cases, the biggest losses come from someone using access that already exists.
No dramatic hacks. No blinking screens. Just normal actions used in the wrong way.

How Major Fraud Usually Starts
Almost every large incident begins with something small:
1. A stolen password
2. A fake email that looks real
3. A reused login from another site
4. Someone approving a request without checking closely
Nothing feels urgent at the time.

Example 1: “It Looked Like a Normal Login”
In several real incidents:
1. An employee’s account was taken over
2. The login came from a new location
3. Everything else looked normal

The system did not block it.
The account had permission to move money.
So money moved.
No alarms. No warnings.

Example 2: Payments Were Inconspicuously Diverted
Rather than directly stealing money from an account, cybercriminals will often use other methods to divert payments to their accounts.
They may accomplish this using one or more methods, including: 
1. Change the bank account number on file 
2. Change the payment details on invoices (i.e. new name and/or New Address) 
3. Alter the company's payout rules (e.g. change where the checks & wire transfers were sent) 

With these types of changes in place, the company continues to make payments, however, the money ultimately goes to a different account.
These modifications can often go unnoticed because they typically resemble other routine updates.

Example 3: “We Thought the Email Was Real”
One of the most common scenarios: 
1. Finance employee receives an email with an urgent request 
2. The email comes from a company manager or business partner 
3. The language and tone of the email is very familiar, but anxious 
4. A change of a small amount of money is requested

The employee makes the requested change, but several days/weeks later, the fraud comes to light.
While it appears that the email was legitimate and convincing based on the manager's name, title, and email address, it was, in reality, fraudulent.

Example 4: Fraud That Grows Slowly
Large losses rarely happen in one day.
More often:
1. Small amounts are moved at first
2. No single transaction looks suspicious
3. Activity happens during business hours
4. Patterns only become clear later
By the time someone notices, the damage is already done.

Why Systems Often Don’t Catch This
Most security systems look for obvious danger:
1. Failed logins
2. Broken rules
3. Blocked access attempts
Fraud avoids all of that.

It succeeds by:
1. Logging in successfully
2. Using approved permissions
3. Following normal processes
From the system’s point of view, everything is fine.

Real-World Consequence
In many investigations:
1. The fraud lasted weeks or months
2. No alerts were triggered
3. The first sign was missing money
4. Discovery came from audits, not security tools
This is why fraud feels sudden, even when it is not.

What Actually Helps Reduce Fraud
Organizations that reduce losses tend to:
1. Double-check payment changes
2. Slow down urgent requests
3. Question “normal” activity that feels slightly off
4. Separate approval responsibilities
5. Review access regularly
Simple habits often stop complex fraud.

What This Means for Everyday People
Fraud does not require technical skill.
It relies on:
1. Trust
2. Routine
3. Speed
4. Familiarity
Taking a moment to verify can prevent months of damage.

Key Takeaways
1. Major fraud usually looks normal at first
2. Most incidents use real access, not hacking
3. Small changes can lead to large losses
4. Slowing down is one of the best defenses
5. Questions prevent more fraud than software
Fraud succeeds when nobody feels the need to ask, “Does this make sense?”