Dennis Vacco didnβt need any more food for thought.
As he sat down for dinner with CrediVault CEO John Gavigan to discuss ways to use the blockchain technology theyβd been developing together to prevent financial fraud, Vacco β partner at law firm Lippes Mathias and former New York State Attorney General β had recently found himself in the middle of trying to solve two cases involving missing wire transfers.
Just last year, one of his clients lost $4.25 million due to a misdirected transfer. During the pandemic, another client suddenly stopped receiving monthly payments of $300,000 to $400,000 due to a diversion of funds.
βIt just dawned on me at this brainstorming session that, why canβt we use this technology to better protect these wire transfers?β Vacco said. βThe users are typically law firms and businesspeople on both ends β two groups that should be concerned about the security of financial transactions via wire.β
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WireVault was formed to safeguard transactions using best-in-class security. Lippes Mathias and Rupp Pfalzfgraf were among the first law firms to implement WireVaultβs data security software, which mitigates risk, catches mistakes and reduces liability.
βThe learning curve isnβt difficult, and the steps that are employed are not excessive or time-consuming,β Vacco said. βBut they are important steps to help ensure that these financial transactions are better protected. Once the protective nature of WireVault is explained, then most clients want that level of protection.β
How WireVault works
Wire transfers are often the preferred method for moving money in large transactions β from legal settlements and real estate sales to investments and private dealings.
To execute a wire, the parties involved need to share basic banking information, namely a routing number and account information. Emailing and texting are the most common ways for parties to share these payment details with one another before providing them to the bank.
But Vacco says there is an unrealistic or undeserved sense of security to the traditional wire-transfer methods. This creates major risk factors and gives cybercriminals multiple access points to breach and misdirect funds.
WireVault streamlines the process by providing a single interface to collect, store and share this sensitive information β whether a payment is being sent or received.
By offering a set procedure, WireVault helps ensure security protocols are followed and payments end up where they belong. It removes the back-and-forth communication over email or text, both of which are susceptible to hacks or spoofs. By sharing this information using WireVaultβs platform, you can drastically reduce the threat of wire fraud.
In addition to elevating transaction security, WireVault reduces the likelihood of data-entry error by putting each party in position to directly enter their banking information β no more transposing numbers read off during a phone call. And two-factor authentication provides crucial identity verification.
This data is then stored on a private blockchain where it cannot be altered by anyone to help ensure cybercriminals have no way to change records and misdirect payments. Only authorized users can view the information, again after two-factor authentication.
βNight and dayβ
Rupp Pfalzgraf controller Terry Kosmowski, one of WireVaultβs most active users, used to leave the office a bit anxious when that day of work involved any transferring of funds via wire.
βThere were so many risks involved that it kept me up at night,β she said.
But since adopting WireVault, the attitude toward wires has completely flipped. Those at the firm now encourage their peers and clients to use WireVault.
βWith the ongoing threat of cyber issues in our industry and all industries, frankly, I think if we don't adapt, we're going to be in a place where we're at risk,β Rupp Pfalzgraf COO/CFO Dominick Muto said. βWireVault gives me confidence that when we send a wire β whether it's to a client or to a law firm β that it will be delivered to the recipient that it was intended for.β
Kosmowski said the new sense of security is passed along to clients. She thought that some might be nervous to try a new software, but when the firm sends a sign-up document explaining how itβs helping them, the ease of use and what to expect, there has been no hesitancy.
βWhat we were doing before feels a little rudimentary at this point,β Kosmowski said. βWe had good practices in place to try and mitigate the risk, but itβs night and day. I feel good when I get to send people information about WireVault. It's wonderful.β