The centre highlighted the different scams as the deposit and refund, fraudulent requests to change bank account details and advance fee.
The deposit and refund scam involves criminals ordering goods from a business and then paying money into the victim’s bank account, mostly by depositing a fraudulent cheque.
Sometimes, proof of payment is fabricated to create the impression that the deposit was made in cash. Afterwards they send the ‘proof of payment’ to the business and the goods are released to the criminal.
Alternatively they cancel the order and request an urgent refund of the funds made. The bank will then process the cheque and discover that the cheque is fraudulent and reverse the credit on the victim’s bank account. The bank can also discover that no deposit was made at all.
As a result, no funds are transferred into the victim’s account.
The change of banking account details scam also remains prevalent as bank customers are still duped by scam artists telling them that certain suppliers have changed their banking details.
The advance fee scam involves fraud artists extorting funds from the victim with the promise of a higher value in return. One will receive an email or text message stating that they have won the lottery or prize and need to contact someone to collect their prize. They will then be told that they must pay an initial administrative cost into a nominated account.
“Fraud artists often use the names of reputable companies to try to con people into believing that their scams are legitimate”, said the centre’s CEO Kalyani Pillay.
The centre has released precautions that business owners and individuals should take.
*No ‘refund’ should be made without first verifying with the bank that the deposit that has been made into your account is legitimate.
*Wait for all deposits (cheque, cash or electronic) deposits to be cleared first before releasing the goods or services to a depositor.
*Always check statements or contact the bank to establish if the funds have been cleared and are available in your account before releasing the goods.
*Protect personal information as well as that of your company. Criminals gain access to you and your organisation details through your personal information.
*Always be weary of deals that sound too good to be true.
*Always be suspicious of email or text messages stating that you have won a prize if you have not entered a competition, and never pay an amount in advance to secure your prize.
*Never pay any fees up front, unless you are sure that the person or company that you are dealing with is a reputable supplier.
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