Mandate Fraud Increasing – 10 July 2013

A foiled attempt to defraud a borough council in Wales out of over £2 million, has highlighted the need for businesses to not only be vigilant when it comes to financial transactions with customers and contractors; but to also employ the services of forensic accountants when they believe something may be amiss.  The attempted fraud, which involved someone claiming to be from a contractor and advising the council that the next payment of £2.6 million needed to be made to an alternative bank account, is a form of fraud which is reported to be on the increase.

The fraud, known as “mandate fraud” involves a criminal diverting payments to a personal bank account – and the fees diverted are not always large amounts at once; instead they can be smaller sums over a period of time.  Mandate fraud is often directed towards businesses whose relationship between buyer and supplier is in the public domain; however all businesses can become victims of financial fraud – and if you have concerns, it is advisable to seek the assistance of a forensic accountant, such as a member of our team, at the earliest opportunity.

As forensic accountants, we are experienced in a range of cases – including fraud – enabling us to offer expert advice, based on the facts of the case.  In the situation that there is a need to pursue litigation following our investigations, we are also able to provide the necessary information and documentation to support your case; and act as expert witnesses if required.  In addition to supporting businesses who are concerned that fraud may have taken place; our forensic accountants are also able to provide a fraud risk review – minimising the risk of your business becoming a victim of criminal activity.

Author: Roger Isaacs, 10 July 2013

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