UK Finance, which represents over 300 UK financial services providers, has called on firms to protect themselves against CEO, invoice, and mandate scams as the end of the tax year approaches.

The British trade association’s Take Five to Stop Fraud campaign is warning companies to be aware of scams that could cost them thousands, with criminals exploiting the busy period of processing invoices, paying suppliers, and finalising accounts.

Common methods criminals use to target businesses include invoice and mandate scams which involve criminals posing as regular suppliers persuading businesses to change the bank account details they hold on file.

Firms can also be targeted by CEO scams where criminals impersonate senior staff members to request urgent payments.

UK Finance warns that criminals may target businesses over several months, during which time they build a picture of the structure of a firm and the employees responsible for authorising payments. Additionally, company websites can sometimes reveal information about genuine suppliers that can then be used by criminals.

According to the organisation, in the first half of 2024 alone, losses to these types of scams totalled £33.5 million.

CEO scams accounted for £7.8 million, with an average loss of nearly £50,000 per case - the highest of all scam types.

Invoice and mandate scams saw losses of £25.7 million, with 78 per cent (£20 million) of these losses occurring on business accounts.

“As the end of the tax year approaches, it’s important for businesses to stay alert to potential threats of fraud," said Giles Mason, Take Five spokesperson. “Businesses often process higher-value payments more frequently, making it harder to spot a fraudulent one.

"By following the Take Five to Stop Fraud advice, you’ll help Stop, Challenge and Protect your business from threats of fraud.”

---