Identity fraud becoming more ingenious - bank
8 October 2008, 10:08
The SA Banking Risk Information Centre has again warned companies and individuals to beware of fraudulent banking scams, such as the deposit and refund scam.
These involved sensitive company information, including banking details, letterheads and client details falling into the hands of criminals, Sabric commercial crime office head Susan Potgieter said.
While the modus operandi was not new, the perpetrators usually took advantage of the relationship a company had with its creditors, debtors, and even clients.
"They would create an impression that a company is dealing with a reputable stakeholder, through using its letterheads, logos or any other form of identity to defraud the business.
Obviously there is compromise of a business's personal information for them to be able to use it."
Fraudsters communicated with victims, usually in an official letterhead from the said "debtor", stating that a deposit had mistakenly been paid into the respective client's account.
They then requested an immediate refund and provided the bank account details into which the refund should be made, usually asking for an electronic funds transfer.
Often a deposit had indeed been made, and it was assumed a genuine mistake had been made and a refund was appropriate.
"What the unwary businessman doesn't know is that often the deposit has been made with a fraudulent cheque and the scam is only discovered when the cheque bounces," Potgieter said.
The bulk of companies targeted tended to be small and medium enterprises, while private individuals were also targeted. "The criminals do their homework and they carefully select their victims."
These involved sensitive company information, including banking details, letterheads and client details falling into the hands of criminals, Sabric commercial crime office head Susan Potgieter said.
While the modus operandi was not new, the perpetrators usually took advantage of the relationship a company had with its creditors, debtors, and even clients.
"They would create an impression that a company is dealing with a reputable stakeholder, through using its letterheads, logos or any other form of identity to defraud the business.
Obviously there is compromise of a business's personal information for them to be able to use it."
Fraudsters communicated with victims, usually in an official letterhead from the said "debtor", stating that a deposit had mistakenly been paid into the respective client's account.
They then requested an immediate refund and provided the bank account details into which the refund should be made, usually asking for an electronic funds transfer.
Often a deposit had indeed been made, and it was assumed a genuine mistake had been made and a refund was appropriate.
"What the unwary businessman doesn't know is that often the deposit has been made with a fraudulent cheque and the scam is only discovered when the cheque bounces," Potgieter said.
The bulk of companies targeted tended to be small and medium enterprises, while private individuals were also targeted. "The criminals do their homework and they carefully select their victims."
- This article was originally published on page 6 of The Pretoria News on October 08, 2008
Pretoria
