Transfer fraud occurs when criminals deceive individuals or businesses into sending money to fraudulent accounts. Here are the main types and how to protect yourself:

Common Types of Transfer Fraud

Supplier Payment Fraud Scammers impersonate legitimate suppliers and claim their bank details have changed. They provide new, fraudulent account information for future payments.

CEO Fraud Criminals pose as company executives, usually targeting accounting staff with urgent transfer requests. In 2013, Vallourec lost €23 million through this method.

Phishing Fraudsters collect personal data through deceptive emails to steal identities and facilitate transfer fraud.

Internal Fraud Employee-initiated fraud through embezzlement, inflated invoices, or cash manipulation can cost organizations up to 5% of annual revenue.

Warning Signs

• Sudden changes in supplier banking details
• Urgent transfer requests from executives
• Emails with spelling errors or unusual domain names
• Suspicious file attachments (.scr, .cab)
• Requests for international transfers

Prevention Steps

1. Verify all bank detail changes directly with known supplier contacts
2. Double-check recipient information before transfers
3. Implement dual authorization for payments
4. Be cautious with urgent transfer requests
5. Verify email sender authenticity

If You're a Victim

1. Identify the fraudulent transfer immediately
2. Change compromised passwords
3. Contact your bank to attempt cancellation
4. Document all communication with fraudsters
5. File a police report
6. Request a refund (though success rates are low for authorized transfers)

Recovery Window Banks typically have limited time frames for reversing transfers. Act quickly upon discovering fraud for the best chance of recovery.

Remember: Always verify payment details through trusted channels and never rush financial decisions under pressure.

Related Articles

Previous Articles