Mandate Fraud
Recognising and Avoiding Mandate Fraud Scams
Mandate fraud involves scammers deceiving businesses or individuals into changing payment details for legitimate transactions. Posing as suppliers, service providers, or even colleagues, fraudsters trick their victims into redirecting payments to fraudulent accounts. These scams can cause significant financial loss and disrupt trust in business relationships.
Things to Be Careful About:
- Unexpected Payment Changes: Be cautious if you receive an email or call requesting updates to bank account details.
- Urgent Requests: Fraudsters often stress urgency to pressure victims into acting without verification.
- Unverified Contact Information: Scammers may provide contact details that differ from official records.
- Email Impersonation: Fraudsters may use email addresses that closely resemble legitimate ones.
- Lack of Supporting Documentation: Scammers often avoid providing official paperwork or contracts.
Actions You Can Take:
- Verify Payment Changes: Confirm any changes to payment details directly with the requester using verified contact information.
- Implement Approval Processes: Require multiple levels of authorization for payment updates to minimize risk.
- Educate Staff: Train employees to identify and report potential mandate fraud attempts.
- Use Secure Communication Channels: Avoid discussing sensitive financial matters through unsecured or unverified platforms.
- Report Fraud Attempts: Notify your financial institution and local authorities about suspicious activities.
Mandate fraud exploits trust and relies on quick, unverified actions. By fostering a culture of caution and vigilance, businesses and individuals can protect themselves from financial loss and ensure secure transactions.