Back in 2015, there was a wave of so-called director fraud – one firm in the US lost over £11million in a single instance. However, it seems as though this type of deception might be rearing its ugly head once more, as advances in software make the task similar for criminals. In this blog, we look at what it involves and how you can avoid it.
Director fraud is where a criminal sends an email, usually to someone in a finance team or with financial responsibilities, purporting to be from a senior colleague such as a director or CEO.
In some cases, the fraudsters use technology to falsify the origins of the email, giving it the correct ‘reply-to’ email address and signature. In others they have been known to actually gain illegal access to genuine staff email accounts in order to write the email.
The names of senior staff are available by searching details at Company House or business networking sites like LinkedIn. Sometimes fraudsters contact the staff members in order to harvest their details when they reply.
Typically, the fraudulent email requests an urgent transfer of funds for a spurious reason, such as beginning a contract with a new client. As soon as the money is transferred to the criminals’ account, it is withdrawn and they disappear.
As leading accountants, you can imagine we’ve encountered many types of fraud, including those that have targeted our clients and indeed our own company. Sadly, fraud is part of the online world. If you want advice in tackling fraud, give us a call for an informal discussion, or check out the anti-fraud website from the police here.
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