In order to deceive your organization, a fraudster informs you that a supplier’s payment details have been altered and supplies an alternative detail.
The fraudsters pretend to be from your company’s supplier or even a member of your own staff. Because these assets are frequently transferred swiftly, retrieving any money from them can be extremely difficult.
Fraudsters are always studying the interaction between businesses and their clients or suppliers, and they will also learn when payments are due. Only when the true supplier firm follows up on non-payments can the fraud be detected.
Fraudsters send very convincing letters and emails to businesses, making it impossible to detect them without robust operational processes and controls in place.
How to prevent it?
1. Check the details of any new payment instructions using the information on the physical file.
2. Always follow up on payment requests using a trustworthy number from the source company.
3. Before processing payments, ensure that your invoices have the complete legal name and carefully review the invoices.
4. When it comes to regular transactions, consider having only one point of contact with the companies.
5. Accounts should be audited on a regular basis.
6. Ensure that all employees, particularly those in charge of payments, are constantly educated and taught.