Payment Diversion Fraud in the Construction Sector

What is Payment Division Fraud? 

Payment diversion fraud generally involves criminals contacting an organisation’s finance department, pretending to be a regular supplier and asking to redirect future direct debits or invoice payments. Some of the tactics utilised by criminals involve: 

• Impersonation: Criminals will make contact over email or phone call, whilst impersonating existing suppliers, or sometimes staff within your own organisation. 
• Urgency and secrecy: They pressure you to act quickly and ask you not to share the request with others. 
• Changed payment details: They will claim that the supplier has changed their bank and future payments need to be paid into the new account.

How to protect yourself? 

• Verify: If you receive a request to move money into a new bank account, contact the supplier directly using established contact details, to verify and corroborate the payment request. 
• Internal processes: Establish robust internal processes for handling changes to payment details. For example, only designated employees should be able to make changes to payment arrangements. 
• Payment method: Avoid paying by bank transfer as it offers you little protection if you become a victim of fraud. Instead, use a credit card or payment services such as PayPal. 
• Sensitive information: Invoices, payment mandates, and other documents containing sensitive financial information should be stored securely and only be accessible to those staff that need them to perform their duties. Sensitive documents should be shredded before they are disposed of.

What to do if you suspect fraud? 

Report it to the police: If you have been a victim of cyber crime or fraud, report it to Report Fraud at www.reportfraud.police.uk, or by calling 0300 123 2040 

Sign for Police Cyber Alarm: Whilst this service will not help you regarding payment diversion fraud, this tool will help with your internal cyber security. Police CyberAlarm is a free tool to help you understand and monitor malicious cyber activity against your network. 

This service is made up of two parts: monitoring and vulnerability scanning. https://www.cyberalarm.police.uk/ 

Engage with your local Cyber Resilience Centre: CRC Network works with some of the country’s top student talent to deliver fully funded cyber security services for SMOs, including bespoke staff training, advice on security policies and testing services to identify the organisation’s specific vulnerabilities, improving risk awareness and cyber resilience. 

The Network provides long-term support, through a customer journey model, involving regular, engaging bitesize cyber security guidance to members, tailored to specific regions or sectors, in alignment with NCSC services, products and guidance. 

Find your local CRC here: https://nationalcrcgroup.co.uk/regional-centres/ 

If you would like to further support, information or guidance please contact us at Business.Engagement@cityoflondon.police.uk The team offers intelligence-led staff training and awareness. They are also the national coordinators for the UK Protect Network, meaning they have Cyber and Fraud Protect officers across the country who would be able to supply on-site awareness training and incident response training to businesses and individuals.