Bank Wire - Explained
What is a Bank Wire?
- Marketing, Advertising, Sales & PR
- Accounting, Taxation, and Reporting
- Professionalism & Career Development
Law, Transactions, & Risk Management
Government, Legal System, Administrative Law, & Constitutional Law Legal Disputes - Civil & Criminal Law Agency Law HR, Employment, Labor, & Discrimination Business Entities, Corporate Governance & Ownership Business Transactions, Antitrust, & Securities Law Real Estate, Personal, & Intellectual Property Commercial Law: Contract, Payments, Security Interests, & Bankruptcy Consumer Protection Insurance & Risk Management Immigration Law Environmental Protection Law Inheritance, Estates, and Trusts
- Business Management & Operations
- Economics, Finance, & Analytics
What is a Bank Wire?
A bank wire refers to a direct and electronic transfer of messages, account information and notifications from one bank account to another. It is also described as an electronic system used by major banks to communicate messages and information about the accounts of clients. A bank wire was developed to foster electronic communications between banks which will help in facilitating swift transactions from one account to another. The wire is simply a computerized system that enable banks send and exchange messages, transaction requests, account information and notifications.
How Does a Bank Wire Transfer Work?
Bank wire has no effect on the transfer or money from one bank account to another bank account which is described as wire transfer. Receiving banks are notified of actual transfer payments or wire transfer through a bank wire. Hence, bank wire ensures that banks are not left in the dark as regards the transactions that are made into accounts such as fund deposit and transfer. It is necessary to state that there is a clear distinction between a bank wire and a wire transfer. While a bank wire is an electronic communication systems that major banks use to transmit information, messages and information about accounts, a wire transfer is an electronic transfer of funds from one account to another. When a wire transfer is done, abks communicate amongst themselves as to who the recipients are, the amount transferred and the account receiving the transfer through a bank wire. The International bank account numbers (IBAN numbers) help to sort out and identify the correct ban where the recipient in a wire transfer belongs.
Bank Wire and Security
With the development of bank wires and an increase in wire transfers, cybersecurity threats have also multiplied. Banks face cyber attacks during wire transfers and other cyber threats such as bank wires being hacked. There are three common cyber attacks associated with bank wires and wire transfers, they are;
- Direct-access attacks: these attacks come in the form of bugs, viruses and affect the general system.
- Backdoor attacks: individuals use this method to access systems that do not have authentication methods.
- Denial-of-service attacks: this attack entails entering incorrect passwords multiple times in a way that the original owner of the account is prevented from using the account which will be blocked after multiple entry.
Major banks are investing heavily in the prevention of cyber attacks. Despite these available measures, individual businesses and large businesses including government systems are constant targets of cyber attacks.