Bank transfer scams, also known as Authorized Push Payment (APP) fraud, occur when criminals deceive individuals or businesses into sending money to accounts they control. Here are the main types of bank transfer scams and how to protect yourself.

Common Types of Bank Transfer Scams

Fake Supplier Fraud:

• Scammers impersonate legitimate suppliers
• They claim bank details have changed
• Send fake invoices using supplier company information
• Target companies' accounting departments

'Fake President Fraud':

• Criminals pose as company CEOs
• Request urgent bank transfers
• Use social engineering techniques
• Can result in massive losses (e.g., Vallourec lost €23 million)

Phishing:

• Collects personal data to steal identities
• Often serves as the first step for other scams
• Targets both individuals and businesses

Internal Fraud:

• Conducted by employees with access to sensitive data
• Includes corruption, asset misappropriation, and overbilling
• Can cost companies 5% of annual turnover

Warning Signs:

• Unusual transfer requests
• Bank details from outside Europe
• Spelling mistakes in communications
• Suspicious domain names or extensions
• Unknown file attachments (.scr, .cab)

Protection Measures:

1. Always verify bank detail changes directly with suppliers
2. Install robust antivirus software
3. Implement strong password policies
4. Enable two-factor authentication
5. Distribute financial management responsibilities
6. Protect employee contact information
7. Secure similar domain names to prevent cybersquatting
8. Never use contact details provided in suspicious communications

If You're Scammed:

• Report to your bank immediately
• File a police report
• Document all communications
• Contact relevant fraud authorities

Remember: Bank transfer scams are serious crimes carrying significant penalties, including up to 5 years imprisonment and substantial fines.

Related Articles

Previous Articles