Recently contractors have been warned of the rise in mandate fraud within the sector.
According to the National Crime Agency, these scams cost the UK economy around £100 million per year.
On average, companies have been scammed of around £27,700, but one was by £1.1 million.
Also referred to as payment diversion fraud, contractors are receiving fake invoices from a criminal posting as a supplier asking for payments to go into a new bank account.
The not-for-profit organisation, North East Business Resilience Centre (NEBRC), warns construction firms that these criminals are successfully developing their tactics to steal money from companies.
If you own or manage a business in this sector, here is what to look out for:
- Fraudsters using email addresses identical to those used by a genuine business
- Fraudsters using matching email signatures and disclaimers
Rebecca Chapman, Police Superintendent who heads the NEBRC, said:
“Mandate fraud aimed at construction businesses is becoming more commonplace as the nature of the sector with complex supply chains, multiple third-party contractors and a fast-moving work environment often meaning there’s little time to double-check authentic-looking requests that come in on email.
“It only takes a split second for a member of staff to unwittingly allow a mandate fraud to take place, and the criminals will take no time at all to move any monies on from genuine customers and bank accounts.”
Are you worried about the rise in scams?
Advice from the National Crime Agency states to double-check bank details before making payments. If you are contacted via email to change the account details in which you pay one of your suppliers, contact the supplier directly to make sure the email is legit.
Contact construction law experts
With such projects often proving costly and complicated, it pays to work with a company that specialises in construction law and appreciates the commercial impact of the advice provided.
At Palmers Solicitors, we can help prevent disputes arising through the professional drafting of contracts and other agreements. However, we also appreciate that projects do not always run as planned, which is when we can advise on resolving problems through negotiation and mediation.
Should this not be effective, we can then act on your behalf or act in your defence.
To find out more about how we can help you, please contact us.