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Different methods of fraud

This is the second in a three part series on fraud.
The methods we will be covering have been brought to our attention by our clients and not by the national press.

These methods of fraud are real and unfortunately some of our clients have fallen victim to these scams over the last few weeks.

Another fraud that has come to our attention involves large telephone orders of goods using a cloned credit card, the transaction passes bank security but when completed the money has to be repaid to the credit card company.
This has successfully been carried out by fraudsters, including a number of organisation within South Wales.

Impostors purporting to be genuine customers from overseas (we are aware of two instances where they said they were from Australia), and as the cost of living is so much higher overseas they have ordered a large volume of goods over the phone that they plan to ship overseas. Authorisation checks on the credit card payment have been undertaken but the credit card passed all checks as the card has been cloned and the details were correct. Within a couple of weeks of the transaction being completed, the company was then contacted by the credit card company to explain the payment was fraudulent and that the amount needs to be repaid. We have been made aware that insurance companies will not cover you for this type of fraud as the transaction has been completed without the cardholder present.

What action should organisations take to mitigate risk of this fraud occurring?

Recommended actions that organisations can take include:

  • Be mindful of any large unexpected orders.
  • If a large order is placed, request that they visit your premises to collect the goods and pay upon collection including entering their PIN number
  • Ensuring that staff working in relevant areas are fully aware of the risks involved with this type of fraud

Bevan Buckland Accountants Swansea Tel: 01792 410100

Bevan Buckland Accountants Haverfordwest Tel: 01437 760666

Bevan Buckland Accountants Pembroke Tel: 01646 682383

Bevan Buckland Accountants Carmarthen Tel: 01267 233115