- This is where a fraudster contacts a business, posing as a customer, to order goods or services. They make a payment, usually by cheque or draft.
- After making the payment, the fraudster gets in contact to reduce or cancel the order, or to advise that an error’s been made, and requests an urgent refund.
- The business processes the refund quickly and returns it using an electronic payment method.
- In due course, the original cheque or draft is returned unpaid because it’s fraudulent, and the business is left out of pocket.
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Take Five to stop fraud
Take Five is a national campaign that offers straight-forward and impartial advice to help everyone protect themselves from preventable financial fraud. This includes email deception and phone-based scams as well as online fraud – particularly where criminals impersonate trusted organisations.