Thousands fall victim to mandate fraud - here's how to spot it

Be wary of emails telling you about changes to bank account details.

There's been an alarming rise in the number of people conned into switching planned payments into fraudsters’ bank accounts, new figures have revealed.

Last year more than 5,000 fell victim to the scam, which is known as mandate or invoice fraud. That's an increase of 71% compared to 2014, according to police reports, with £126 million lost to fraudsters overall. 

Of those affected, 36% said it had a severe or significant impact on them, even affecting their health or their ability to make ends meet.

How it works

Basically, victims will be sent emails from a company or supplier asking for quick payment, swiftly followed by another saying that there has been a change in bank accounts. 

The scam works in two ways;

• A company’s IT system is infected with malware which allows criminals to spy on the emails and then contact customers about 'bank detail changes'.
• A criminal claims to be someone senior in a company emailing a junior member of staff asking them for a business payment - this is known as CEO fraud.

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How to protect yourself

Commander Chris Greany, national co-ordinator for economic crime said:

“People need to feel comfortable to question what is being requested of them.

"Trust your instincts - if someone requests a change to payment details be suspicious. If in doubt pick the phone up and verify the change directly”.

The City of London Police also has a few other tips to stop you from falling for this type of fraud, particularly if you're a company boss:

• Ensure all staff, not just finance team, know about this type of fraud- especially those covering roles during the holidays
• Never respond to contact details given to you by someone requesting changes to financial details. Instead, use email and phone contacts that you already know to check it has come from someone genuine
• Always review invoices to check for inconsistencies and errors, like a misspelled company name
• Contact suppliers for payment of larger invoices in advance of making payment to ensure that payment is made to the correct bank account
• Never leave invoices unattended in the office or on a desk
• Make sure your computer systems are secure and that antivirus software is up to date.

Keep an eye on your outgoings

People who have direct debits or standing orders for memberships or subscription services need to stay vigilant too.

Mandate fraudsters could get you without you even suspecting it. You may get letter or an email from your subscription provider saying that it’s changed its bank details, so you unwittingly pay the scammer and stop receiving your subscription.

Like the company mandate fraud, it’s wise not to leave important documents like bills and statements lying around and check with the organisation directly if you’ve received a notification about bank account changes. If you call up the organisation, make sure it’s on a number that you trust.   

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