From Macedon NPT. Business Fraud I’m in business. What should I look out for? Fraudsters have developed a number of ways to target your business accounts. These criminals could be working from outside or within your organisation. They could be working alone or as part of a larger network, possibly with links to organised crime or terrorism. The list of methods that criminals use to defraud businesses is extensive. KYC – Know Your Customer Introduced as a response to the Anti-Money Laundering guidelines issued by the Financial Services Authority (FSA) to all lenders within the UK. The key to Know Your Customer (KYC) is to have sufficient information about a customer to confirm that a new or existing customer is who they claim to be. Below is a list of the most common ways your business could be targeted: Telegraphic transfer Criminals send a request for the transfer of money from your account, known as a telegraphic transfer request. These often originate from other countries. The fraudsters compromise your account in some way, obtaining your account details. Then they’ll send a letter to your bank, requesting a telegraphic transfer of funds to another bank account, which is usually a legitimate business account, to pay for an order of goods. When that business receives the funds, they unwittingly dispatch the goods to the fraudsters. Insiders Recent investigations into major cases involving identity theft, impersonation and the take-over of customer accounts have shown that many cases depend on the complicity of collusive employees. Known as ‘insiders’, these employees are unlikely to be working independently and more often than not are part of a larger, organised group obtaining personal details from various sources. If compromised within one business, they will often be re-positioned into similar employment with access to the same material and the same potential to inflict financial loss. Employees As well as placing people within your organisation, be aware that criminals do also try to recruit existing employees. They typically target specific workers and make their initial approaches in a social setting, such as in a pub. Often, employees inadvertently give away a few pieces of information they feel is harmless. However criminals can also then start to put pressure on these employees with threats of violence if they do not give the information that they want. What should I do if I suspect an employee? If you have concerns over your employees’ intentions, whether in banks, building societies, foreign exchange bureaux or the less obvious but increasingly common call centres or mobile phone companies, think twice before you act. Understandably, companies have concerns about their liability should a suspected individual be allowed to continue their activities, even though monitored. But we would urge you to take a long-term view. Simply confronting and sacking an individual is only a short-term solution. It’s an approach that has come back to haunt many businesses who have released an employee without taking them to task, particularly when that individual’s new employer starts asking questions. Develop a Consultation Plan with the PSNI’s Organised Crime Branch to ensure you have a course of action that works in everybody’s interests. We urge all businesses to report such concerns to the police as early as possible. Often, when we are brought in at the eleventh hour so much evidence is lost, along with any chance of identifying other collusive employees or the organisers. Your business could be at risk from organised criminals who will try to use it to make money. Always ensure that the person or business you are dealing with actually exists. Trade Directory / Bogus Publishing There are many publishing companies operating throughout the UK and while the vast majority are genuine, it is not unknown for criminals to abuse this industry to make money. If you receive a phone call from a publisher and you suspect that it might be a scam we would advise businesses to firmly but politely tell the caller that they are not interested in placing an advertisement in the publication. Danger signs Cold calling and telesales Beware anyone claiming to represent any of the following: Charities, Rescue Services, 999 Services Rehabilitation Projects Unsolicited invoices. psni.police.uk/130307_ibf_fraudbrochure_updated2013_ud05_rd_text.pdf
Posted on: Tue, 15 Jul 2014 18:13:58 +0000
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