In most cases, no, B2B wire transfers cannot be reversed once they’ve been processed. Unlike credit card or ACH payments, wires settle quickly, often within minutes, and once funds leave your account, recovery is rare. Even when banks attempt a recall, success depends on catching the fraud almost immediately and on the cooperation of every bank involved. This makes prevention the only reliable defense.
Process controls (like segregation of duties and approval workflows) help reduce human error, but fraudsters move faster than manual checks. That’s why automated account validation – with solutions like Trustpair – is critical: it verifies the ownership of bank accounts in real time and blocks suspicious transactions before they’re executed.
Reversing a wire transfer: key takeaways
- Wire transfers are almost always final: once funds are settled, recovery is extremely rare compared to ACH or card payments.
- Reversals only work in narrow cases: such as bank errors (duplicate, wrong amount, wrong recipient) or if fraud is reported immediately before settlement.
- Fraud recovery is unlikely: scammers move funds quickly across accounts or into crypto, making clawbacks nearly impossible.
- Time is critical: contacting your bank within minutes gives the best, though still slim, chance of success.
- Prevention is the best defense: automated account validation tools (like Trustpair) block suspicious payments before execution.
Can you get a wire transfer back?
Overall, your chances of getting your bank to reverse a wire transfer from the recipient’s account are pretty low. They are electronic fund transfers, and the way they work makes it hard to cancel them.
If the funds have already been accepted by the receiving bank (if the money is already in their bank accounts), then it’s impossible to retrieve the money sent by the sender.
That’s actually what makes wire transfer fraud so dangerous. By the time you realize you’ve been a victim of bank transfer fraud, it’s usually too late. Scammers have received the money, transferred it to another account, and disappeared.
There are some extenuating circumstances under which you might get lucky.
In what situations can a bank wire transfer be reversed?
A wire transfer can be reversed if your bank has made an error or if you realize early on – in the first few minutes – it’s a fraudulent transfer. On the other hand, if you’re the one who made a mistake, the bank wire transfer won’t be reversed.
If your bank made an error
If your financial institution made an error when processing the wire transfer you sent, then you have a chance of getting your funds back. Wire transfer reversal can happen under these circumstances:
- Your bank sent your wire transfer twice, in which case you’ll get the duplicate back.
- They sent more money than you intended to send. For instance, they sent $100.000 instead of $10.000. Since it’s their fault, you’ll get the difference back.
- They sent it to the wrong recipient. If the bank account information wasn’t correctly processed by the financial institutions involved, it’s their responsibility to correct their mistake.
If you made a mistake
On the other hand, if you’re the one who made a mistake, it’s very unlikely you’ll be able to retrieve your money.
In the UK, a man lost about $200K from his father’s inheritance because of one wrong digit in the recipient’s bank account number.
The bank first refused to give him the funds back — only offering him $30 in compensation while the erroneous payee was doing withdrawals. It’s only when he sued them and the case picked up some publicity months later that the bank turned around and he was able to retrieve the funds.
While that story has a good ending, it shows how tedious it can be to reverse wire transfers when you’ve made a mistake. In the case of corporations, you probably wouldn’t want to go public about it, further reducing your leverage.
Here are some cases in which you can request your bank to reverse wire transfer:
- Errors: just like the case above, you can always ask your or the other financial institutions to reverse the transfer. Chances are slim, but often it’s your only recourse.
- Fraudulent transaction: if you can prove it was a fraudulent transfer (and you catch it in time), your bank might be able to help you recover the funds lost through fraud if the clearing process hasn’t been finalized already. Bank intervention is what saved Matel from losing millions when they fell victim to CEO fraud.
- The recipient cooperates: if you’re lucky, the person you wrongly sent the money to might be willing to send them back. However, doing the “right thing” isn’t a trait fraudsters are known for. In case of corporate fraud, don’t count on it.
It’s worth noting that the same rules apply to Automated Clearing House (ACH) transfers.
Fraudulent transactions can have a significant impact on companies – and not only a financial one.
How is reversing a wire transfer different from reversing an ACH?
ACH transfers can sometimes be reversed for specific reasons – duplicate payments, processing errors, or unauthorized debits – but only within a narrow window (often 1–5 business days). The request must comply with NACHA reversal rules, and even then the recipient bank can dispute it.
By contrast, wire transfers are typically final and irrevocable once settled. Because wires settle quickly (or instantly on modern rails), there’s little scope for reversal unless banks act immediately (e.g. for a bank error). After funds are withdrawn or moved, recovery is virtually impossible.
In short: ACH reversals offer a limited safety net; wire transfers demand prevention, not cure.
| Payment Type | Reversal Possibility | Typical Time Window | Conditions / Limitations | Likelihood of Recovery |
|---|---|---|---|---|
| ACH Transfer | Yes, under NACHA rules | ~1 to 5 business days | Allowed for duplicate payments, wrong amount, or unauthorized transaction. Requires valid reason + documentation. Receiving bank/account holder may dispute. | Moderate — possible if request is timely and justified |
| Wire Transfer | Rare, generally irreversible | Minutes to hours at most | Recall only possible if error is caught before settlement. Once funds are deposited, especially if moved/withdrawn, recovery is nearly impossible. | Very low once settled |
What should you do immediately after realizing a wire transfer was fraudulent?
Below are the three steps to take after realizing you’ve been defrauded:
- Contact your bank ASAP: explain the situation clearly and ask them to immediately take action to block the transfer. Know that if it’s already been received by the recipient, your chances are very low. But you can still ask them what your recourse is.
- Contact the authorities: As soon as the fraud is discovered, report it to the appropriate law enforcement and regulatory agencies. This creates a documented trail and may trigger investigations or freezing actions. Key organizations include: the FBI’s Internet Crime Complaint Center (IC3), the Federal Trade Commission (FTC), etc.
- Gather evidence: from phishing email to the transit number (or your transaction’s reference number), make sure you provide all relevant details. This can include electronic communications like emails, screenshots of text messages, etc.
- Sit tight. The process of wire transfer reversal can take some time. Correspondent banks have to establish communications and grasp the full extent of situation amidst a sea of bureaucratic and legal regulations.
Can a wire transfer ever be canceled or disputed?
Traditional wire transfers through banks – which are electronic funds transfers – can very rarely be retrieved. If the funds have already arrived in the recipient’s account, then you can’t cancel or dispute it.
Ultimately, retrieving money sent via wire transfer is a race against time. With the current push towards instant payment methods and mobile banking, sending money has never been so easy. Funds are deposited within 10 seconds or less, making this race very hard to win. For bank-to-bank transfers, the funds transfer can be even quicker.
If you use a money transfer service like Transferwise, Western Union, or Moneygram to send remittance, you legally have 30 minutes to call back your transfer of funds if the recipient hasn’t done a withdrawal.
Note that the outgoing transfer fees for an international bank account can be much higher. That’s especially the case if you want it received the same day. It’s worth comparing with the wire transfer fees at your local bank, especially to send money in a foreign currency as they’ll charge you on top of the exchange rate.
In the case of B2B payment fraud, fraudsters will likely clear out their account the same day they receive the transfer, making it impossible to get your funds back. If they’ve given false information to their bank and proceeded to close their account, then they become untrackable.
Compliance Checklist: U.S. Regulations Impacting Wire Transfers
| Regulation | What It Covers | Compliance Risk if Wire Transfer Isn’t Reversed |
|---|---|---|
| Bank Secrecy Act (BSA) | Anti-money laundering (AML) programs, suspicious activity reporting (SARs), and recordkeeping for large/ unusual transactions. | Failing to detect or report suspicious wires may result in penalties and investigations. |
| OFAC Sanctions Compliance | Prohibits transactions with sanctioned individuals, companies, or countries. | Sending money to a sanctioned entity—even by mistake, can trigger hefty fines and reputational damage. |
| Uniform Commercial Code (UCC 4A) | Governs rights and responsibilities in U.S. wire transfers. Requires “commercially reasonable security procedures.” | Businesses may be held liable for losses if they lack proper controls (e.g., dual approvals, fraud detection). |
| Sarbanes-Oxley Act (SOX) | Ensures strong internal controls over financial reporting for public companies. | Weak payment processes or failed reversals may be flagged by auditors, damaging investor trust. |
How to avoid erroneous or fraudulent bank wire transfers?
Preventing mistakes in electronic bank transfers
Since reversing wire transfers (and ACH transfers) is almost impossible, you need to make 100% sure that the ones you send are correct.
Here are some good practices that you and your financial team must follow to lower your risks of financial losses:
- Double-check all information. When sending any type of electronic funds, verify every piece of information twice. It is tedious, but it’s worth the effort to safeguard your company. Ideally, you want to ask two different people to check the same information, applying the 4-eye principle makes it less likely for an erroneous transaction to go through.
- Contact the recipient. If you’re not fully convinced that the details provided are correct, up-to-date, or even legit: get in touch with the account holder using the contact information in your database. That’ll ensure you’re not falling victim to vendor fraud, where criminals impersonate your suppliers and send you fraudulent bank account information under false pretenses.
- Trust your instincts. If you’re thinking something is odd, it probably is. Whether it’s a fraudulent attempt or just a mistake, it’s better not to risk transferring funds to the wrong IBAN number. Ask your manager or a colleague for their opinion, or even better yet, involve your IT security team.
Of course, in the case of elaborate fraud schemes, these protections aren’t enough to ensure your bank transfers are done securely.
Preventing fraud with Trustpair
Using fraud detection and protection software like Trustpair is the best measure against fraud. Trustpair automatically and continuously checks your suppliers’ bank details (including their SWIFT code) through automated account validation before wiring money — even if it’s a recurring payment.
This protects you against international wire transfer scams as well as those initiated domestically. This could be invoice fraud, whaling attacks, spear phishing, and other types of fraud. Request a demo to learn more.
To conclude:
- Wire transfers can only be reversed under specific circumstances, and while the money hasn’t been received by the beneficiary.
- Ensuring you wire funds to the correct account is paramount. Trustpair is an anti-fraud software that ensures you always send money to the right person.