Businesses warned of COVID-19 related scams
As people begin to work from home, this may provide new opportunities for scammers to take advantage of this disruption. Mandate fraud is a scam that thrives in situations where staff are working in isolation, using different modes of communication than normal and are perhaps unable to seek advice from colleagues. Mandate fraud is when someone gets you to change a direct debit, standing order or bank transfer mandate, for example related to a business supplier. Payments are then made to fraudsters, rather than the real recipients. Businesses are advised to look out for any of the following:
- urgent payment due to cash flow problems
- changes to bank account details
- contact from third parties requesting changes to bank details and claiming to act on behalf employees incapacitated by the virus
To avoid problems, ensure all staff are aware of mandate fraud, robust procedures including where necessary enhanced authorisation processes are in place and maintain frequent communications with all staff. Further advice: https://www.actionfraud.police.uk/a-z-of-fraud/mandate-fraud