Information about business fraud and advice to avoid being a victim.
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Fraud is a crime in which some kind of deception is used for personal gain. As technology advances, fraudsters have become increasingly sophisticated and many types of fraud exist.
Bank mandate fraud occurs when someone requests you to change the bank transfer mandate.
They claim to represent an organisation you make regular payments to. These can include business supplier, membership or subscription.
Fraudsters will identify suppliers of services you or your organisation use on a regular basis.
The payment is made as requested and the fraud is complete.
As a business you are contacted by someone pretending to be one of your suppliers. They tell you they have changed their bank and request a change to their direct debit.
As a result, the bank mandate is changed to the fraudsters account. The next month you are contacted by your genuine supplier asking what has happened with the monthly payment.
Here is some advice to follow to avoid being a victim.
- Know your top 20 creditors and be alert to any requests to change bank details
- Have a senior member of the finance team review your activity and only once they are satisfied authorise the change of bank account details
- Regularly look over your bank statements and report anything suspicious to your bank immediately
- If the communication is deemed to be a scam - consider sharing this information as an 'Alert' with the National Anti-Fraud Network (NAFN). They will notify other partner groups who may also be affected.
If you reside in Scotland please report any incidents of fraud to Police Scotland via 101.
If you live elsewhere in UK; Action Fraud is the UK's national fraud and internet crime reporting centre, they provide a central point of contact for information about fraud and financially motivated internet crime.
Action fraud A-Z of fraud details further information about different types of fraud.
Outwith UK report to your local police service.