Categories: Fraud & Scams

Bank Transfer Fraud

The number of Authorised Push Payment Scams such as malicious redirection, where change of bank details are received from an apparently genuine sender, is on the rise.

We look at some of the common ways fraudsters use this to defraud people and businesses, and what you can do to help spot the fraud.

Compiled details from UK Finance, Which, ActionFrauf and FinanceWatch
Looking at Authorised Push Payment Fraud (APP) Malicious Redirection for 2018 only.

Number of reported APP(MR) reported :
7,544	Of which… 3,280 were against businesses. A total of 9,898 payments were made, indicating a number of times, multiple fraudulent payments were made before the fraud was noticed.
Sum of losses:
£123,700,000	Of which… £92,700,000 was from businesses. £31,000,000 was from individuals.
Sum of money returned to victims:
£36,000,000	Only about 30% of the total money stolen in APP(MR) fraud is recovered.
Average Loss:
£20,750	Average loss in APP(MR) fraud directed at businesses.
Other financial frauds reported
Romance Scams	£5,000,000
Impersonation Scams	£22,000,000
Advance Fee Scam	£6,000,000
CEO Fraud	£8,000,000
Investment Scam	£20,000,000

Link to more details:  https://www.ukfinance.org.uk/system/files/Fraud%20The%20Facts%202019%20-%20FINAL%20ONLINE.pdf

Protection against Authorised Push Payment Fraud

There’s a voluntary code that banks can subscribe to, aimed at helping victims of APP fraud to get their money back if the APP was to another UK account. But that’s all, so having internal security procedures in place is essential.

Even if your bank does subscribe to this voluntary reimbursement policy, having some simple internal procedures in place can help prevent the fraud from happening in the first place. If you are still the victim of APP fraud, having documented procedures could show that you did take procedures to validate the payment first.

What to do if you’re a victim of APP Fraud?

First of all, you should gather all the documents relating to this transaction, include emails, letters and logs or telephone calls.

Next you should contact your bank. Find out if they are subscribed to the code for reimbursement, and report the fraud to them. If your bank refuses to help you or takes more than eight weeks to respond to you, you can contact the Financial Ombudsman Service via their website http://www.financial-ombudsman.org.uk/consumer/complaints.htm or by phone 0800 0234567

You should then report the fraud to the police via their Action Fraud service either on the internet at https://www.actionfraud.police.uk/ or by phone on 0300 123 2040

#WeCanHelp

We can help you put procedures in place that will help protect you or your business from APP and other financial frauds.

Top Tips

Protect your information.
Sometimes, details used to commit APP comes from details found in the bin. Make sure you shred any documents with personal details on (even your name and address) before putting them in the bin.
Check Statements
With so many bank accounts being paperless now, it’s easier to forget to download a copy of your statements and check them, but put a recurring reminder in your calendar to do this. Notify your bank or credit card company if you notice any unusual transactions, however small they are.
Redirect Mail
If you move house, make sure you notify all the organisations who have your details. And put a Royal Mail redirect in place to forward any missed mails to your new address.
Double check any changes of details
If you’re expecting an invoice or to transfer any sum of money, especially if it’s a large sum like buying a new house, and you get a letter, email or phone call advising you of a change of bank details – double check it, always! Call the recipient on a number you know you can trust (not one in the letter or email) and ask if it’s genuine, then ask for their old bank details so you can check they match what you have.

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