One of the common frauds that has surfaced recently is really difficult to detect. Thanks to the volume of transactions that we process, we’re able to spot fraudulent attempts before they become costly crimes for our clients.
One of the services that we offer is international wire transfers. Importers use our wire service to pay invoices for their imported goods. As part of this service, we keep a template for each of our clients, and when account details change, this is a red flag for a fraud in progress!
Although the details sometimes differ, a common scenario looks like this:
One of our clients receives an email from a known and trusted vendor with an invoice that looks exactly like their usual invoice and includes details that match the products they purchased. The fraudster, posing as the trusted vendor, may mention that the client should use the new wire details provided. Then, when our client comes into our office to pay the invoice and we see a change in banking details, we pause.
In this scenario, the fraudster had hacked and monitored our client’s email account. They saw a monthly invoice from a particular vendor and, by watching their inbox, they were able to piece together the transaction process — the order that was placed, the payment details, and often, the email to our company requesting the payment. The fraudster then is able to delete an actual invoice and replace it with a modified invoice showing these “new” account details. If our client pays the invoice, they would not realize that it’s a scam until the invoice generates a “late” statement 30 days later. By that time, the funds are long gone.
The most successful fraudsters have very limited contact with the people they are scamming. In the case above, they only had to modify an existing invoice and no other communication was needed. As such, the client had a very limited opportunity to identify that a fraudster was posing as their vendor. Luckily, the change in banking details prompted a series of questions from us, and would result in our team uncovering the fraud before the funds are sent.
At Global Currency, we pride ourselves on being trusted experts in our community and going to great lengths to ensure that our clients are safe. Contact us anytime if you suspect that you may be the victim of a fraud in progress, or if you would like to learn more!