How does it work?
Someone claiming to represent a supplier or provider contacts a company, either by telephone, letter, fax, or email. The fraudster requests that payment bank details be changed (for example: bank account beneficiary details) for upcoming invoices. The new bank account is controlled by the fraudster.
What Can You Do?
AS A COMPANY:
- Ensure that employees are informed and aware of this type of fraud and how to avoid it.
- Implement a procedure to verify the legitimacy of payment requests.
- Instruct staff responsible for invoice payment to always verify that there are no irregularities.
- Review the information published on your company’s website, especially regarding suppliers and providers. Strongly recommend that your staff limit what they share on their personal social media accounts about the company and workplace.
- Always contact the police in case of attempted fraud, even if you have managed to avoid it.
AS AN EMPLOYEE:
- Verify all requests that appear to be from your creditors, especially if they ask you to change their bank details for upcoming invoices.
- Do not use the contact details from a letter, fax, or email requesting a change. Instead, use those from previous correspondence.
- Establish a single point of contact with companies to which you make regular payments.
- For payments exceeding a certain limit, establish a procedure to confirm the correct bank account and recipient (for example, a meeting with the company).
- When an invoice is paid, send an email to inform the recipient. Include the name of the beneficiary bank and the last four digits of the account to ensure security.
- Limit the information you share about your company on social media.
- Report fraud attempts to company management.
Download the infographic with tips to avoid becoming a victim of this fraud.
