Trading Standards issue warning over direct debit and standing order scams

Trading standards officers in Inverclyde are warning local residents and businesses to watch out for scammers trying to take advantage of the pandemic by getting them to redirect regular payments, standing orders and direct debits to dodgy accounts.

Councillor Michael McCormick, Convener of Inverclyde Council’s Environment & Regeneration Committee, said, “Criminals see disruption and uncertainty as an opportunity to exploit changes in the normal way people do business. A lot of people are working from home during the emergency and they may not have access to the same databases and programmes that they usually do. It can also be harder to check details with colleagues and just use them as a sounding board to check if something doesn’t feel quite right.

“We’re urging people and businesses to watch out for anything out of the ordinary: urgent requests for payment because of cash flow problems; firms claiming to have changed their bank account details and people asking you to change payment arrangements while claiming to be acting for sick colleagues.”

Bank Mandate Fraud can work in a number of ways:

  • Your online bank account is hacked by a fraudster and monthly payment details are changed so that the money is transferred to the fraudster’s account.
  • You are contacted by someone pretending to be from a supplier that you pay by standing order. They ask you to change the order to a different sort code and account number. The standing order mandate is amended but next month your supplier fails to deliver your order because they haven’t been paid.
  • As a business you are contacted by someone pretending to be one of your suppliers who tells you that they have changed their bank. They ask you to change your exisitng direct debit to pay money directly into the fraudster’s account.

Councillor McCormick said, “During the emergency home working, different methods of communicating and the absence of colleagues can pose new risks to organisations. However by using robust procedures, beefed up authorisation processes and frequent, scheduled communications we can protect our organisations and ourselves from fraudsters.”