UK Finance, which represents over 300 financial service providers, warns firms to safeguard themselves against common scams. As the tax year ends, criminals step up their efforts to target businesses. They use CEO, invoice, and mandate scams to steal money. Companies must take action now.
Scammers exploit busy periods. They target companies when processing invoices, paying suppliers, and finalising accounts. During this hectic time, mistakes can happen. Fraudsters use these opportunities to trick businesses. They disguise themselves as trusted contacts. Their goal is to steal funds and cause ultimate chaos.
UK Finance highlights the danger. Losses from these scams reached £33.5 million in the first half of 2024 alone. This figure shows the severe impact on businesses. Criminals use many tactics. They build a picture of a firm’s structure and its employees over several months. This detailed planning makes the scams more effective.
The Rising Threat of Fraud
CEO scams are a major concern. In these scams, fraudsters impersonate senior staff members and send urgent payment requests that appear to come from high-ranking executives. The scams often work because they create a sense of urgency, and employees feel pressured to act quickly. In many cases, the scam results in significant losses.
On average, each CEO scam causes nearly £50,000 in losses. With total losses reaching £7.8 million, this scam type is the costliest of all. Fraudsters study a company before making contact. They learn who approves payments and use this knowledge to their advantage. This preparation makes it harder for businesses to spot the scam.
Invoice and mandate scams are another serious threat. In these schemes, fraudsters pose as regular suppliers. They persuade businesses to change their bank account details. When a company sends a payment, the money goes to the scammer instead of the genuine supplier. This trick has a clear motive: to steal money.
These types of scams caused losses of £25.7 million, of which a staggering 78 per cent came from business accounts. Criminals use real information from company websites and exploit details about genuine suppliers to create convincing fake messages. This makes it crucial for businesses to verify any changes to payment instructions.
Scammers Build Their Case
Criminals do not act in a hurry. They build a detailed picture of their targets over several months. They gather information about a company’s structure and its key employees. Company websites and social media become valuable sources of data. Fraudsters also use public records to add credibility to their claims.
This methodical approach gives scammers an edge. They prepare detailed, fake invoices and messages. Their communications look authentic. As a result, employees may not immediately suspect fraud. The scams work best when the fraudster has done their homework. This preparation makes it difficult to detect the scam until it is too late.
Giles Mason, the spokesperson for the Take Five to Stop Fraud campaign, stresses the need for caution. He advises businesses to follow clear steps to protect themselves. “As the end of the tax year approaches, it’s important for businesses to stay alert to potential threats of fraud,” he said. Mason explained that businesses process higher-value payments more frequently during this time, which makes spotting a fraudulent payment harder.
Mason recommends following the Take Five advice. This simple plan helps businesses stop, challenge, and protect themselves from fraud. The advice offers clear, actionable steps that every firm can implement, lowering the risk of falling victim to these scams.
Five Steps to Protect Your Business
Businesses can follow a five-step plan to reduce their risk. These steps, which are simple yet effective, come from experts at UK Finance and the Take Five campaign:
1. Verify Payment Details
Always confirm any changes to supplier bank details by calling your supplier directly using a known number. Do not rely solely on email instructions. This extra step can stop fraudsters in their tracks.
2. Challenge Unusual Requests
If you receive an urgent request from a senior executive, verify its authenticity. Use a separate communication channel to confirm the request. This practice prevents scammers from taking advantage of internal pressure.
3. Monitor Invoices Closely
Review all invoices carefully before making payments. Check for any inconsistencies or unexpected changes. Train your accounts team to spot red flags. Early detection can save you a lot of trouble.
4. Educate Your Employees
Make sure all staff understand the risks of CEO and invoice scams. Run regular training sessions. Encourage employees to ask questions if something seems off. Knowledge is your best defence.
5. Use Strong Internal Controls
Implement robust internal controls for authorising payments. Establish clear procedures that require multiple approvals. This structure reduces the chance of a single person being duped by a scam.
Benefits of Increased Vigilance
Businesses that act now can save themselves from significant losses. By following the expert advice provided, companies can build a strong defence against fraud. Regular training and strict controls add layers of security. These measures make it harder for fraudsters to succeed.
Moreover, increased vigilance protects a company’s reputation. Falling victim to a scam can hurt trust among customers and partners. By demonstrating strong fraud prevention practices, businesses can reassure stakeholders. This proactive approach also helps maintain financial stability.
UK Finance calls on firms to work together to fight fraud. Cooperation between banks, businesses, and industry groups is vital. Sharing information about new scams can also help everyone stay ahead. The more the industry collaborates, the harder it becomes for fraudsters to operate.
The Importance of Industry Cooperation
The threat of CEO, invoice, and mandate scams continues to grow in 2025. As the tax year ends, the risk becomes even higher due to the increased volume of high-value payments. Fraudsters build detailed profiles of companies and use sophisticated methods to trick employees. These scams cause substantial financial losses, as seen with the £33.5 million lost in the first half of 2024.
Businesses must act now to protect themselves. They must verify payment details, challenge unusual requests, monitor invoices, educate employees, and enforce strong internal controls. These steps form a solid defence against fraud. Industry cooperation and regular updates on scam tactics also play a crucial role.
UK Finance urges every business to stay alert and follow the Take Five advice. By taking these measures, companies can safeguard their funds and maintain trust with customers and suppliers. Proactive fraud prevention is the key to reducing losses and protecting your business in these challenging times.
