Supplier fraud on the increase, warns KPMG
Finance departments in the West Midlands are being warned to be cautious of a rise in supplier fraud.
The Midlands offices of KPMG said it has seen an increase in the number of clients receiving official looking letters purporting to be from one of its suppliers.
The letters, which ask organisations to amend a supplier's bank account details, are being circulated by fraudsters.
Anoushka Akins, senior manager within KPMG's forensic team in Birmingham, said "This is a troubling rise in what basically is an old-style fraud. Often many businesses who have amended a supplier's details do not realise there is a problem until they are chased for payment by that supplier. A number of well-known organisations have been tricked in this way, with the amounts involved being significant.
"Being aware of the scam significantly helps to mitigate the risk. However, companies must ensure they take the necessary precautions to make sure they do not fall foul of this simple but potentially very costly fraud."
