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Banking & financial disputes
In the current circumstances, authorities are warning that everyone should be particularly careful of frauds relating to Covid-19. The previous two parts of this series have looked at how banks should protect their customers and the potential courses of action available to victims of fraud. However, the safest way to protect yourself against fraud is to prevent it from taking place in the first place. Helen Ingram recommends steps to take to reduce the risk of fraud.
2 minute read
7 May 2020
Given the current circumstances, authorities are warning that everyone should take particular care against frauds relating to Covid-19. In parts one and two of this series we looked at what mechanisms the banks should have in place to protect their customers and potential courses of action available to individuals and businesses which have been victims of fraud. However, the safest way to protect against fraud is to prevent it taking place in the first place, so what steps are recommended to reduce the risk of fraud?
Types of fraud
Bank fraud comes in all shapes and sizes. Below are several key approaches which you may encounter:
|Authorised push payment fraud||Fraudsters deceive consumers or individuals within a business to send them a payment under false pretences. This can include phishing, whaling, invoice fraud and impersonation as listed below.|
|Phishing||Sending emails/text messages purporting to be from a reputable sender in order to trick the recipient into revealing personal information.|
|Whaling||Phishing attacks directed at senior employees, as a result they are usually more targeted e.g. using personalised information relating to the individual in question.|
|Invoice fraud||Tricking a business into changing the bank account details for a payee.|
|Impersonation||Fraudsters impersonating someone else in order to trick a victim into making payments to a fraudulent account. This can take many forms, for example, the fraudster may impersonate the victim’s bank to say that the victim needs to transfer their funds in order to prevent an attempted fraud. Another example is the fraudster claiming to represent a charity (currently this is often for causes relating to COVID-19) and persuading the victim to make a donation.|
|Malware||Malicious code used to target or gain unauthorised access to a network, e.g. viruses, ransomware and spyware.|
Preventative measures to take
Given the heightened risk currently, it is advisable to put protective measures in place to minimise the risk to yourself and your business. Some examples of such measures include:
Further guidance on how to protect yourself or your business against fraud can be found on the following websites:
For more information or advice on what to do in the event of fraud, please contact a member of our Banking & financial disputes team.
7 May 2020
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