1 - Payment diversion fraud
The fraudster tricks an organisation into changing the beneficiary bank account details - a letter or email is received from a “regular supplier” informing the company that they have changed banks/bank accounts or that the payment needs to made to the parent company.
2 - Business Email Compromise (‘CEO Fraud’)
A scam that involves the fraudster masquerading as the CEO / MD who contacts the company’s member of staff in order to make a payment. To the bank receiving the payment request, the payment instructions has been properly authenticated by the customer which thwarts a number of the fraud detection controls in place. Upon notification, banks will try seek to recover funds on a best endeavours basis and typically any residual loss will be borne by the customer.
3 - Vishing (previously known as Telephone Deception)
A social engineering attack by phone where fraudsters contact the customer, purporting to be a representative of the bank, police, another company for instance utilities or a government agency, or even just any unsolicited call from a fraudster where they encourage you to give out your personal details, for example the card number, PIN or card reader codes. The deception may involve one or more payments being initiated by the fraudster that the customer is unaware of or the customer unwittingly initiates payments to accounts controlled by the fraudster in the belief they are assisting police or protecting their own funds. Customer can also be tricked into making large withdrawals which are later collected or stolen by the fraudster.
If the caller is claiming to be from somewhere that the customer always uses or trusts (for instance BT, Talk Talk, the police, the bank) then this is known as trusted source fraud and is a type of vishing.
Other variations on this type of fraud including phishing, where the customer is contacted via email, and smishing, where the customer is contacted via text, or ‘SMS’, hence the name.
Financial crime is a key threat for industry and regulatory authorities alike. Having knowledgeable, fully trained staff who understand the risks and how they can be managed is essential. The ICA Diplomas in Financial Crime Prevention increase awareness amongst individuals and help prevent fraud, protecting firms.
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