Warning issued as £17k defrauded from business

Friday 22 June 2018

As a local business is reporting it has lost £17,000 to fraudsters, the Economic Crime Division has issued a warning to islanders and businesses to be on their guard.

Mandate fraud, also known as invoice redirection fraud, is when someone impersonates a supplier and tell the customer they've changed their bank details and asks for their records to be updated.

Unknowingly, the payment is then made to the newly provided details. The fraud often only comes to light down the line when the real supplier chases payment.

The advice issued by the ECU was covered over six points. 

They are as follows:

• Make sure the request is from the genuine supplier. Contact them using established contact details on file or from their website - don’t reply using the details provided in the request. Use both email and telephone in case one has been hijacked by fraudsters.

• Contact senders of larger invoices in advance of making payment to ensure details are correct.

• Never leave invoices unattended in the office or on a desk.

• Ensure your computer systems are secure and anti-virus software is up-to-date.

• If you are concerned about the source of a call, ask the caller to give you a main switchboard number for you to be routed back to them. Alternatively, hang up and call them back using established contact details you have on file.

• Check your bank statements carefully and report anything suspicious to your financial institution.

Mandate fraud has occurred many times in the history of Guernsey, and islanders are reminded to have caution when it comes to dealing with bills and payments.