FRAUD PREVENTION : STEALING THE MONEY
Time and again we are asked by clients who have been scammed of money, whether they can claim it from anyone (as the fraudster usually has skipped with the money).
Firstly there are things that both the payer and the recipient can do to reduce fraud and the courts are beginning to look at whether any fault can be apportioned in the events leading up to the fraud.
What can the payer or buyer do?
The primary responsibility still rests on the buyer to make sure the account you are paying to is the correct account. These actions should help:
1. Verify the account number with the bank. All banks have a service you can activate to verify that the account number you are paying to corresponds with the name of the recipient's bank account. Do this every time you create or edit a creditor on your online banking platform.
2. Do not accept emailed quotes or invoices reflecting a bank account number or even a telephone call without taking additional precautions to verify that account number. Fraudsters intercept emails and create new documents and emails substituting the correct bank account number with their own and you would have difficulty knowing they have done this.
3. Check the recipient company's website for confirmation of their account number. Many have it listed there.
4. Telephone the recipient company's offices listed on their published webpage, speak to the accounts department and verify the whole or last few digits of the bank account number you are paying to. Don't simply phone the last person who spoke to you regarding payment. This may well be the fraudster and of course they will "verify" their account number as the correct number to pay to.
5. Do not complain to the recipient if you have not done these simple checks and a fraudster has stolen your money.
What can the recipient or seller do?
To secure your company against fraud and help in the protection of customer's money, there are also steps the receiver can take to ensure fraud-free payments.
1. Register with all banks to have your company listed as a registered recipient. This obviates the need for customers to type in a (possibly incorrect) account number when paying you and they have to select your company from the registered list.
2. Having done that, stop giving out your banking details on all invoices and quotes and rather expect your customers or clients to rather find you on the bank-registered list.
3. Even if you haven't done step 1, make sure, before you email or give out any banking details, that you have made contact with your customer and asked them to follow at least 2 of the steps mentioned under buyers above to independently verify your banking details. Follow this up with a text and/or email reminder setting out the steps. Only then ask them to pay you.
4. Join or establish a secure communication system that protects your email system against being intercepted. This is not fail-safe as the customer's email system may not be protected, but it may halve the risk.
Suggested email/text to customers:
Fraud prevention
Please note that we will be expecting you to pay money to us for the proposed job or works to be done.
As discussed telephonically, to prevent fraud or your money being hijacked to a false account set up by a fraudster, please take the following steps to protect your payment and to ensure the funds reach our company account.
.... list the items under the buyer/payer's checklist above.
If either party does not follow the above steps, the chances of fraud taking place increase substantially, and if the money is claimed from you, you might well be deemed to be wholly or partly responsible for neglecting to do so and carry responsibility for the loss.
# Mc Naught and Co regularly update their payment security measures as we understand that it is critically important that funds being paid by us, or intended for us, reach the right account. We do expect our clients to be equally diligent with their money and payments.