In recognition of International Fraud Awareness Week, Texas Capital is sharing a series of insights designed to help individuals and businesses protect their financial well-being. Today’s focus is on Social Engineering — one of the most common and deceptive tactics used by fraudsters to manipulate people into revealing sensitive information.

In today’s increasingly digital financial environment, social engineering has become one of the most dangerous and deceptive threats to business banking. Unlike traditional cyberattacks that target systems, social engineering exploits human behavior — manipulating individuals into revealing sensitive information or performing unauthorized actions.

For businesses of all sizes, especially those managing high-value transactions and vendor relationships, understanding how social engineering works and how to defend against it is essential. At Texas Capital, we believe that empowering clients with knowledge is a critical step toward building financial resilience.

What Is Social Engineering? 

Social engineering refers to a range of tactics used by fraudsters to manipulate people into compromising security. These attacks often appear legitimate and can be difficult to detect, especially when they mimic trusted contacts or business processes. 

Common Social Engineering Tactics: 

• Phishing: Emails or messages that appear to be from trusted sources, asking for login credentials or payment details.
• Pretexting: Impersonating a colleague, vendor or authority figure to gain access to sensitive information.
• Business Email Compromise (BEC): Fraudsters pose as executives or vendors to request wire transfers or changes to payment instructions.
• Tailgating and baiting: Physical or digital tactics used to gain unauthorized access to systems or facilities. 

How Social Engineering Affects Businesses 

The financial and reputational impact of social engineering attacks can be severe. According to the FBI’s Internet Crime Complaint Center, Business Email Compromise led to more than $2.7 billion in reported losses in 2024, and it remained one of the top three cybercrimes causing the highest financial losses last year. These attacks often target finance departments, executives and vendor relationships — areas where trust and urgency can be exploited. 

Risks to Business Banking: 

• Unauthorized wire transfers or ACH payments
• Compromised login credentials for banking platforms
• Fraudulent vendor payment redirection
• Exposure of customer or employee data 

Recognizing Social Engineering in Business Banking 

Spotting social engineering requires a combination of awareness, skepticism and training. Attackers often use urgency, authority or familiarity to bypass normal verification processes. 

Red Flags to Watch for: 

• Requests to bypass standard payment procedures
• Sudden changes in vendor payment details
• Emails with subtle domain misspellings (e.g., texascapitalbannk.com)
• Pressure to act quickly without verification
• Unusual tone or formatting in executive communications 

Ways to Protect Businesses from Social Engineering Tactics 

Proactive defense is the best strategy. Businesses should implement layered security protocols and foster a culture of vigilance across departments. 

Best Practices: 

• Verify financial requests through a second channel (e.g., phone call or in-person confirmation).
• Train employees regularly on fraud awareness and phishing detection.
• Use multi-factor authentication (MFA) for all banking and email access.
• Limit access to financial systems based on role and responsibility.
• Monitor transactions for anomalies and set alerts for high-value transfers. 

Texas Capital Bank’s Commitment to Business Banking Security 

At Texas Capital, we understand the evolving threat landscape and the importance of safeguarding your business. Our business banking solutions are designed with advanced security features and supported by a team of financial professionals who prioritize your protection. 

Our Security Approach Includes: 

• Real-time fraud monitoring and alerts
• Secure digital banking platforms with MFA
• Dedicated relationship managers for personalized support
• Ongoing education and resources for clients and teams 

Explore our Business Banking solutions and learn more about fraud prevention. 

Stay Ahead of Social Engineering Threats 

Social engineering is a growing concern in business banking — but with the right knowledge, tools and financial partner, your organization can stay protected. By recognizing the signs, implementing strong security practices and working with Texas Capital Bank, you can safeguard your business and empower your team to act with confidence. 

Reach out to a Texas Capital advisor today or explore our Security Resources to learn more.