Sponsored by: Mahay Financial Services
Finance
Sector Focus
Income Protection
By Bally Chand Mahay Financial Services
Beware of mandate fraud
Businesses in the West Midlands are being urged to alert staff to the dangers of mandate fraud after new figures show that companies in the region lost £8.7m last year. The data, obtained by RSM from
Action Fraud, the UK’s national fraud and cyber-crime reporting centre, revealed that businesses in the region submitted 100 reports about mandate fraud in 2016-17. Mandate fraud occurs when an
employee is tricked into changing a regular payment mandate such as a direct debit, standing order or bank transfer and redirecting it into a fraudster’s account. The fraudsters can contact
employees via email purporting to be from a supplier that receives regular payments. These approaches are sometimes plausible as they have correct details of staff members’ names and departments obtained as a result of phishing attacks. The scam will often only come to light when the real supplier chases for payment. Nationally, there were more than
1,500 reports about mandate fraud in 2016-17 costing businesses some £32.2m, 12 per cent of all losses reported to Action Fraud by UK businesses last year. Losses in the
‘Businesses must wake up to the threat of mandate fraud and take urgent action’
West Midlands were higher than in any other UK region. Akhlaq Ahmed, forensic partner
at audit, tax and consulting firm RSM, said: “These figures show that far too many businesses across the region are falling victim to mandate fraud. While in some cases the losses are relatively small, in others they can run into hundreds of thousands of pounds, potentially putting the future viability of the business at risk. “Businesses must wake up to the
threat of mandate fraud and take urgent action to prevent it. With the right training and controls in place, there’s no reason why these fraud attempts should be successful.” Businesses are advised to do the
following: • Implement training programmes for staff, particularly those in the finance function, so they are aware of the risks.
• Consider running an ethical hacking exercise to test resilience to phishing attacks.
It is noted that 18% of the working population will not be able to support themselves into retirement due to not having Income Protection in place. Income Protection is an
insurance policy designed to cover you the life insured who are incapacitated and hence unable to work due to illness and health. The benefits of having
Akhlaq Ahmed: Businesses must beware fraud
• Verify all requests for amended payments by checking directly with the organisation or supplier in question.
• Monitor bank statements regularly and report any suspicions to the bank and the police.
• Notify the supplier organisation that has been impersonated.
• Never leave invoices or regular payment mandates on display for others to see.
David named finance director by Hortons
Birmingham-based property company Hortons’ Estate has promoted David Freeman (pictured) finance director. Mr Freeman previously worked
at accountants BDO and E&Y, where he advised property companies. He joined Hortons in 2008 as the financial controller and has
headed the finance function since. Hortons chairman Peter Horton
said: “His promotion is in recognition of both his contribution to the development of the company over recent years and the key role he has to play as we continue to pursue our strategy of delivering long term profitable growth.”
Income Protection is to pay out on illness diagnosed after a deferred period has passed and continue until specified retirement date or until recovery of health. Benefits are paid monthly and may be free of tax. The insurance provider
cannot cancel or refer to renew policy provided the policy holder continues to pay the premium till the policy end date. A waiver of premium option
may be provided where premiums for Income Protection Cover are not required whilst benefits are being paid, however policy cover continues.
T: 0121 551 7676 F: 0121 551 6274 M: 07900 545726 E:
bally@mahaysolutions.com W:
www.mahaysolutions.com
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Mahay Financial Services is a trading style of Mahay Solutions Limited. Mahay Solutions Limited is authorised and regulated by the Financial Conduct Authority. FCA number 673400.
November 2017 CHAMBERLINK 55
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