B2B Payments

Impersonation Fraud Makes Inroads In The UK

Though it may be late payments that grab headlines in the U.K., the fact remains that small and mid-sized entities also have to grapple with fraud. Among those struggles is dealing with impersonation fraud, or business email compromise scams. By now, the process may seem familiar. Fraudsters impersonate a trusted email account, supplier, or business relationship in order to dupe companies to part with their funds.

A Lloyd’s Bank survey estimates that impersonation fraud touches 500,000 businesses and costs them an average of £27,000. This fraud, too, is up 58 percent year-over-year. Only 20 percent of those hit by fraud “think twice” about reconsidering and re-examining business requests and 37 percent say they have no security precautions in place.

Those who might consider themselves tech savvy are not impervious to the scams. Of the 1,500 SME professionals surveyed, 12 percent of millennials have been preyed upon by impersonation fraud, or know someone who has.

Other types of fraud are also gaining traction. As we note in this week’s report, ghost employees, according to the Society for Human Resource Management, can — and have — been haunting firms. No mere specter, they can wreak thousands (in some cases millions) of dollars worth of havoc to a company.

Ghost employees are either dead people living on via the corporate world’s payroll, former employees that are still alive or employees that never were — they are still getting paid in all of these cases.


Featured PYMNTS Study:

More than 63 percent of merchant service providers (MSPs) want to overhaul their core payment processing systems so they can up their value-added services (VAS) game. It’s tough, though, since many of these systems date back to the pre-digital era. In the January 2020 Optimizing Merchant Services Playbook, PYMNTS unpacks what 200 MSPs say is key to delivering the VAS agenda that is critical to their success.