So what happens to the money?
I know we in the US personal banking world are in the Stone Age compared to Europe. Wire transfers here are for moving large amounts of money around (like funding brokerage accounts, shadowy secret-agent style payments, etc.) and generally don't get used for day to day banking. But as far as I know, a wire transfer is like handing a bag of cash to someone, it's semi-anonymous and you can't get the money back once it happens.
So, what happens to the money? Is it just gone forever? Does an insurance company just pay for the loss?
It's interesting because European countries use wire transfers heavily for personal banking. There have to be better protections in place than there seem to be here...otherwise people would be getting wiped out constantly.