How Safe are your blocks funds 

Today, businesses are vulnerable to a new wave of sophisticated online bank fraud. According to recent press reports, there have been more than 500 cases resulting in losses ranging from £80,000 to £240,000 where professional firms have been targeted. Recent evidence suggests that over 82% of companies believe they are protected from fraud and that they “would never be the victim of fraud”, and 33% admit they would not know what to do if they were the victim of fraud.

 The current scam: how does it work?

You receive a call from someone claiming they are calling from your bank. They advise that someone is currently attempting to access your account to make a large fraudulent payment and immediate action needs to be taken. They are counting on panic setting in and your common sense going awry.

They may give you information about your account activity as a means to substantiate they are from your bank.

You will be encouraged to provide access information under the guise of preventing the imminent threat but by giving them access, this allows the scammer to make a payment and attempt to have this payment authorised by information you provide them.

You may be asked to check your online banking while they are on the phone. The scammers may have set up a replica of your bank’s online facility to which you go into and then add codes to access the accounts providing them with your login information.

They may provide you with a telephone number to call them on where they will answer the call as your bank. They also have the technology to redirect your outgoing call to them so even if you call your bank on a known number, the call can be interceded by the scammer.

The timing of the scam is usually close to your bank’s authorisation cut off time and often on a Friday afternoon encouraging further panic.

If you provide anyone with your login or authorisation details your bank will not cover you for this fraud because you willingly gave over confidential information. This is breach of the banks T&Cs.

Who should be concerned?

Managing agents should review all procedures and check your banking covenants;

RMCs/RTMs who self-manage without dual authorisation should review this practice;

Freeholders, RTMs/RMCs with managing agents should check your agent’s banking procedures.

How to avoid the fraudsters

Be vigilant, and make sure your staff are aware all the time. Review your procedures and tighten security;

Always have dual layer authorisation;

Never give out login or authorisation information to anyone. Your bank will never ask you for these details;

If you get a call about fraud STOP. Don’t panic. Call your bank on a known number using another telephone. Speak to your relationship manager or a person known to you at your bank and substantiate the claim of fraud.