What is it?

This type of scam usually targets small business owners. The business receives a fraudulent email or letter informing them that a supplier’s bank details have changed. The communication will also include “new” banking details and will prompt the recipient to update their records accordingly.

As a result, payments are then made to the fraudsters, rather than the actual supplier.

On occasion, this type of scam can also target private individuals, informing them that the bank details for account payments have changed.

How can you protect yourself?

• Make sure you have a good working relationship with suppliers and that you know who to speak to with regards to payments and account details.
• Always confirm telephonically with a supplier before updating bank details. Call the number on your record, not on the suspicious letterhead or email signature.
• Always check the sender’s email address carefully. They will often try to mimic the authentic supplier’s address by changing small details, such as using a .com. address instead of a co.za for example.
• Make sure your staff who deal with payments or accounts are informed and vigilant about this type of scam.
• Do not discard documents that contain information about your company in the rubbish bin. Burn or shred them instead.
• Make sure your customers are also educated about receiving fraudulent communication that mimics your business.