Fraud warning over supplier payments

NORTH west firms are being targeted by bank account fraudsters who have swindled businesses out of large sums of money in recent weeks.

Business advisers at Stockport accountant Hurst say the fraud involves sending emails or letters to businesses purporting to be from suppliers, telling them their bank details have been changed and asking for payments to be diverted into another, bogus account.

In some cases, the fraudsters generate fake websites and phone numbers, and copy genuine business logos and signatures, to make their communications appear legitimate.

Business services partner Anthony Woodings said: “Payment diversion fraud appears to be back in fashion and we have begun notifying all of our clients to alert them. The fraudsters are acting in a sophisticated manner, using a variety of techniques to dupe businesses into making payments to them.

“The bogus communications are often sent around expected payment cycle times, which further gives the impression that they are genuine. It’s vital that companies have procedures in place to verify a ‘change in bank details’ notification, for example by contacting the beneficiary directly to confirm whether the instruction is valid. It can be difficult to recall the transferred funds, as the fraudsters often remove the money from the bogus account before anyone has been alerted, leaving the victims nursing substantial losses.”