Risk broker speaks out after fraud scam

A risk broker has today spoken out on the subject of business fraud, after one of its clients was the victim of a targeted scam.

The anonymous organisation was tricked into paying into a false bank account.

Alliance Corporate Risk Management’s client was asked to amend bank details for a particular supplier to which it pays £50,000 per month. After making a new payment, it transpired that the account had been falsely set up when someone was able to get hold of the company’s headed paper.

Alliance said businesses need to be more aware of corporate identity fraud.

John McLaren-Stewart, chief executive, said: ‘We realise that identity fraud is a growing problem and that it is now costing the UK over £2bn every year.’

‘It is our understanding that a large number of businesses are naively throwing away a great deal of paper material which contains confidential information.’

“Identity fraud is a growing problem and that it is now costing the UK over £2bn every year.

John McLaren-Stewart, chief executive, Alliance Corporate Risk Management

‘In the wrong hands, this could lead to all sorts of trouble for businesses and individuals who are identified within that waste.’

Organised criminals are now paying accomplices to find material within bins at various business premises.

McLaren-Stewart added: ‘Risk management will protect your business against the majority of risks, while for fuller protection, we are also advising businesses to buy crime insurance.

‘We encourage businesses to think about control systems and to ensure good working relationships with their employees as dissatisfied staff are more likely to be tempted into fraud.

‘Obviously a good company policy is really vital, as is accessing as much information as you possibly can about services available to fight against fraud.’