It takes a phone call to avoid this scam
When a supplier changes banking details, businesses need to know that scammers are on the hunt to make lucrative profits.
There is an alarming increase in the rate of cyber scams affecting many businesses, and the scammers are becoming more convincing.
If you are concerned about a certain email or suspect it may be fraudulent activity on the changing of banking details of your supplier, it's important to flag it.
Bilal Kajee, head of Risk Management, Business and Commercial Banking at Standard Bank Group, says the old fashioned way of verifying email notification from a supplier or third party is easy as making a phone call.
Criminals go to great lengths to prolong a scam; it’s only when the real supplier terminates services that clients realise they have been scammed.
5 ways to identify and avoid change of banking details scams
- Be aware of emails notifying you of changes in the banking details of said supplier or third party. You should follow up by making a phone call to the beneficiary to check whether the information received is correct. Kajee advises avoiding contacting new numbers or names in the email as this may be a way for fraudsters to get in contact with you. Call the people you have been doing business with for a long period of time directly.
- If you are unable to contact the supplier or beneficiary to confirm the change in banking details, contact the bank as they provide account validation letters.
- Standard Bank clients can validate the bank account details through the account verification services function on Standard Bank’s payment platform.
- To avoid fraudsters, send the supplier or beneficiary the proof of payment directly.
- Upgrade your computer security software and email systems. This includes turning on 2-step verifications.
Top tip: Often communicate your client strategies to your suppliers, staff and finance staff to educate them on the threats and ask them to call and do basic follow-up checks. This greatly assists in defending you against scammers.
Reference
IT News Africa. 2023. ‘Businesses Can Protect Themselves from Scammers’. [Online] Available: https://www.itnewsafrica.com/2023/04/businesses-can-protect-themselves-from-scammers/ (Accessed 12 May 2023).