Some cases have resulted in multi-million pound losses and pose significant threats to businesses that fail to take any security measures to protect themselves say the NFIB.
Liberal Democrat Councillor for the East Marsh Learn more
by Steve Beasant on 19 December, 2014
Businesses are being targeted by organised fraudsters in a number of impersonation scams according to the National Fraud Intelligence Bureau (NFIB).
Some cases have resulted in multi-million pound losses and pose significant threats to businesses that fail to take any security measures to protect themselves say the NFIB.
How fraudsters are targeting businesses:
Mandate Fraud
Fraudsters impersonate a supplier you have an existing relationship with, and provide alternate bank details with respect to a genuine invoice, which may have been altered.
‘CEO’ Fraud
Fraudsters impersonate the company director, CEO, CFO or similar, and instruct a member of the company’s finance department to transfer funds with respect to a discreet and/or sensitive acquisition, either of another business, or commercial property.
On occasion, the fraudsters will introduce a third party, purporting to be a lawyer or regulator, to add a sense of legitimacy to the request. These individuals may also impersonate a genuine entity, however are also a member of the organised crime group.
Retailer Impersonation Scam (a.k.a. European Distribution Fraud/EDF)
Fraudsters impersonate genuine retailers or wholesalers and place large orders for goods with suppliers who may or may not have an existing relationship with the impersonated company. The goods are ordered on a credit basis and either delivered or redirected to an address accessible to the suspects, or in some cases, collected directly by the fraudsters.
The fraudsters then sell on the product, often back into genuine supply chains, to the public. The impersonated retailers are generally UK-based, as are the delivery addresses; however the targeted suppliers are based not only in the UK, but across Europe.
Protect your businesses
If your business has been targeted by fraudsters in relation to these scams, or any others, report it to Action Fraud by calling 0300 123 2040 or by using the online reporting tool.
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