image description

Bogus Lodgements

Purpose of Advisory

To advise that a number of banking customers in Ireland have fallen prey to frauds that involve bogus lodgements being credited to Bank accounts, disguised as electronic payments from overseas.

A pdf version of BPFI’s Bogus Lodgements fraud alert is available for download here.

Key Points

Common characteristics identified to date are:

  • A company (the victim) advertises a product for sale (usually on the internet).
  • The criminal agrees to buy goods from the company. The sum involved is usually relatively small (ranging between €2k – €4k).
  • The victim provides details of their bank account to the criminal and asks for the payment to be sent electronically.
  • The criminal sends a counterfeit cheque / draft, usually for the sum of €50k – €130k to the account holding bank with a request that the item be lodged and the accompanying reference number be quoted on the lodgement.
  • The narrative may convey the impression to the victim company that the funds are cleared.
  • The criminal then contacts the victim company advising that they overpaid the invoice and requests that the surplus funds be redirected back to an overseas account.
  • The counterfeit cheque or draft is received back unpaid some days after the above scam has been carried out.
  • The risks associated with brand new contracts entered into with strangers over the internet need to be recognised, particularly where you are asked to send monies to these parties.

Action

  • Should you or your staff receive notice of such an unusual lodgement being made into your bank account, exercise considerable caution.
  • Do not return any funds to the remitter unless / until you are fully satisfied that the underlying transaction is genuine. Overseas cheques can take 4 weeks or more to clear.
  • Have clear procedures in place so that unusual scenarios are handled with appropriate caution and that all instances of suspect incidents are reported to management and to the Gardaí / Police.

This is a general notice issued by the Financial Crime and Security Department of the BPFI on behalf of BPFI members.

Disclaimer Note: The information contained in this Fraud Alert /Advisory is for general guidance and for information purposes only and is intended to enhance awareness and vigilance regarding this.

< View all fraud alert articles