Bank Account Vigilance Advised

The inexorable rise in attempted fraud via new technology has not led to the demise of old style frauds, such as the setting up of bogus standing orders and direct debits.

Recently SIGN, a national registered charity working in the field of mental health and deafness in the UK, found that fraudsters who had obtained their bank account details had attempted to set up standing orders transferring hundreds of pounds into accounts controlled by the criminals.

Charities regularly supply their account details to the public, supplying standing order forms to encourage regular giving, so they are at particular risk. One way to prevent such frauds is to make the account one for which outgoing standing orders and direct debits are not permitted.

The Charity Commission has advised charities to be on their guard and to review their accounts regularly. The same logic applies for businesses who supply other organisations or people with their bank account details.

According to accountants BDO Stoy Hayward, reported financial fraud in the UK in 2004 amounted to over £750m, nearly half of which was tax fraud. According to Scotland Yard, fraud costs every UK family £36 per week in increased insurance premiums and other costs.