Review your anti-laundering procedures, companies told
Monday 5th November 2012, 11:00AM GMT.
COMPANIES have been urged to review their anti-money laundering arrangements to avoid becoming victims of fraud.
DS Andrew Whitton, pictured, of Guernsey Police, who leads the fraud department, said mandate fraud was becoming more common and that companies need to take note.
‘Fraudsters rely on details not being checked,’ he said.
‘It is more or less impossible to track where the fraudsters are. They are well practised and good at what they do.’
Mandate fraud is where someone persuades a company to change a direct debit, standing order or bank transfer by mandate by pretending to be from an organisation that regular payments are already made to, such as a contractor or business supplier.
The payment is made to the new account, which belongs to the fraudster. The money then ‘starbursts’ into a number of other accounts in hard-to-reach jurisdictions, making it virtually impossible to trace. Mandate fraud is similar to the recent £2.6m scam of the States, said DS Whitton.
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