Gardaí sound warning after invoice fraudsters target local businesses
GARDAÍ have warned businesses across north Cork to be alert for what is known as invoice redirect fraud after a number of companies in the region were caught out by the scam.
Fermoy based Garda crime prevention officer Sgt John Kelly said that like many successful scams, invoice redirect fraud is as simple as it is effective.
“What happens is that a business may get a communication by letter or email from a regular supplier telling them that their systems have been changed for payment of goods or services, supplying a new set of bank details for future payments,” said Sgt Kelly.
He explained that payments for future invoices are made into the new account and the funds are quickly transferred or withdrawn. Often, these accounts can be set up in another jurisdiction.
“In many instances the business may not even realise it has been the victim of a crime until the legitimate supplier sends a payment reminder or gets in contact directly to find out why they have not been paid,” said Sgt Kelly.
He said that a number of incidents of the crime happening in the north Cork area had been reported to Gardaí over the past two months. In one particular instance a local company was recently defrauded for a five figure sum.
“This is the kind of crime that can often go under the radar for some time, particularly if it involves relatively small amounts of money.
“However, the longer it goes on the more money is involved and the greater the loss,” said Sgt Kelly.
“If, as has happened in many of the cases reported to us, the account the money is paid into is outside of our jurisdiction it is very hard to get the money back unless the scam is discovered quickly and before the money has been transferred.”
Sgt Kelly said businesses needed to be on their guard against the scam and to ensure that all requests to alter payment details are thoroughly investigated.
“To all important phrase to remember here is trust but verify orally, not by email or letter,” said Sgt Kelly.