When LPs Ask, “What Are You Doing About Wire Fraud?”

When LPs Ask, “What Are You Doing About Wire Fraud?”

“Training and Policy” are no longer satisfactory answers when asked by an LP about cash controls.  With losses in the billions and that purpose-built solutions now available and widely adopted, they want to hear a concrete, defensible story about how their capital is protected.

Why LPs Are Raising the Bar

LPs see the same headlines you do: cyber-enabled fraud and business email compromise now drive multibillion dollar losses each year, often by diverting wires through spoofed emails and fake instructions. With the rise of AI, the complexity, sophistication, and frequency of this crime have only increased.  As more investment managers adopt technology to hedge against this risk, “policy only” programs look dated by comparison.

How to Structure Your Answer

A strong response is simple, specific, and framed around people, processes, and technology.

• People: Who owns wire risk in finance/operations, how responsibilities are segregated, and how often teams are trained on BEC and wire fraud scenarios.

• Process: The documented steps you follow for capital calls, distributions, and vendor payments, especially callbacks, dual approvals, and out-of-band verification for any change in bank details.

• Technology: The systems that enforce the Process and assists the People.  Eliminate email, chat, and spreadsheet-based monitoring into a secure and auditable workflow solution.

That level of detail gives LPs something they can diligence, compare across managers, and report internally.

How Conduit Strengthens the Story

This is where Conduit Security stands out to LPs conducting due diligence.  Conduit provides a dedicated platform that integrates into existing workflows to enforce callbacks, approvals, and verification checks before funds move.  Critically, Conduit creates a clear audit trail for every transaction, allowing everyone to trust but verify the process.

So, when LPs ask, “What are you doing about cash controls and wire fraud now that there are solutions available?” managers can point to a specific control stack - people, process, and Conduit’s technology.

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