Fraud Alert – Bogus Lodgements
Businesses and consumers are been advised to be wary of a ‘bogus lodgement’ scam which has recently effected a number Irish bank customers. The scam involves bogus lodgements being credited to bank accounts, disguised as electronic payments from overseas.
Key Details – how does the scam work?
Some common characteristics to help spot bogus lodgements include:
- A seller advertises a product for sale online.
- The fraudster agrees to buy these goods. The sum involved is usually relatively small (ranging between €2k – €4k).
- The seller provides details of their bank account to the fraudster.
- The fraudster sends a counterfeit cheque/bank draft higher than the value of the agreed price, usually for the sum of €50k – €130k to the seller’s bank account, with a specific reference number quoted.
- This reference number may convey the impression to the seller that the funds are cleared.
- The fraudster then contacts the seller advising that they overpaid 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 money to bank accounts abroad and indeed at home.
- Should you, a colleague or friend receive notice of an unusual lodgement being made into your bank account, exercise considerable caution.
- Do not return any funds to the buyer unless you are fully satisfied that the underlying transaction is genuine. Overseas cheques can take four weeks or more to clear.
- If you own a business, 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.