Payment Diversion Fraud involves fraudsters creating false invoices or false requests for payments, or the diversion of payments.

PDF is also known as Business Email Compromise (BEC) or Mandate Fraud.

Payment diversion fraud also includes the following sub threats.

Invoice Fraud

This involves a company’s supplier being compromised. Typically, the victim company is contacted by the fraudsters purporting to be the supplier and requesting payment for an invoice into an account under the fraudster’s control.

There is a specific sub-category of this fraud which is called tradesman invoice diversion, where tradespeople are impersonated. The fraudsters identify customers and demand payments from them by impersonating the company undertaking the work.

Chief Executive Officer (CEO) Fraud

Chief Executive Officer (CEO) fraud involves fraudsters impersonating a senior executive in an organisation and contacting employees to make payments to the fraudster. The fraudsters gain access to the organisation’s email accounts and gain information to enable impersonations of senior management.

Conveyancing Fraud

This type of fraud targets individuals who are in the process of buying a property. Fraudsters impersonate the victim’s solicitor, convincing the purchaser to redirect their payments to an account that the fraudster controls.

Salary Diversion Fraud

Salary diversion fraud involves fraudsters impersonating an employee and contacting the payroll department to change the account details into which the salary is paid.

Prevention

In business prevention of payment diversion fraud is key.

It is vitally important that all companies follow the protection advice set out below.

Regardless of how genuine a payment document may appear, there is no such thing as being too cautious.

Protect your financial transactions

Before paying invoices, check the bank details are correct, especially if advised of a change in account details. The best way to check bank details is to contact the sender through known contact details, not those advising the change (e.g. existing telephone details that you have on file).

Report Immediately

If you think you have been a victim of PDF fraud, act quickly, contact your bank immediately as they may be able to freeze the funds before they are moved.

Also, report the potential payment diversion fraud to An Garda Siochana.

If you have any questions about payment diversion fraud, please do not hesitate to contact James Hyland and Company on (021) 480 6346 or email info@jhyland.com