UK Finance has launched the ‘Take Five to Stop Fraud’ campaign to warn businesses about a rise in scams around the end of the tax year.
The trade association noted that common methods criminals use to target businesses include invoice and mandate scams, which involve criminals posing as suppliers persuading businesses to alter bank account details held on file.
Additionally, it warned that companies are vulnerable to CEO scams where criminals impersonate senior staff members to request urgent payments.
UK Finance is concerned that scammers will look to take advantage of the various tasks businesses will have to complete during this busy period. It has also highlighted that scams may not be obvious as criminals often target businesses for several months, aiming to build rapport with the employees responsible for authorising the payments.
Giles Mason, Take Five to Stop Fraud spokesperson, said: “As the end of the tax year approaches, it’s important for businesses to stay alert to potential threats of fraud.
“Businesses often process higher-value payments more frequently, making it harder to spot a fraudulent one. By following the Take Five to Stop Fraud advice, you’ll help Stop, Challenge and Protect your business from threats of fraud.”
According to UK Finance, in the first half of 2024, losses to these types of scams totalled £33.5m. CEO scams accounted for £7.8m, with an average of nearly £50,000 lost per case – the highest of all scam types.
Meanwhile, invoice and mandate scams saw losses of £25.7m, with 78% of these losses occurring on business accounts.
Companies should review their websites as too much information about staff can help scammers target individuals and better pose as legitimate suppliers.
In addition, UK Finance has shared five tips to help businesses stay safe during this period of the year. The trade body has cautioned businesses to ensure staff members are checking invoices and details throughout the payment process and to be wary of unexpected requests for urgent payment details.
Companies have also been advised to always question changes in payment information and to confirm details directly with suppliers. Additionally, robust payment processes and cyber security are advised, while firms have also been told to be careful with the type of important information about their business shared online.
