Over half (54%) of all reported crime in the UK is fraud and cybercrime, and manufacturing businesses are not immune.
Manufacturers must take steps to deter and prevent fraud – it’s more cost effective than reacting after a fraud has happened.
Fraud changes and evolves all the time, and the best way to think about it is like a clinical virus that responds and adapts as processes and systems change.
Many cyber frauds start with an email specifically designed to capture secure information or trick the recipient into downloading malware. These emails often look like they've been sent by your bank and may contain hyperlinks or attachments to malware downloads.
Malware is malicious software designed to deceive a PC or its user. It can allow a fraudster to secretly and remotely view information on a PC network or capture keystrokes and passwords, which could be used to access a firm's online bank accounts as well as many other operations.
CEO Fraud normally takes the form of an instruction, apparently from a senior official (e.g. CEO, Finance Director), requesting an urgent payment to a specified bank account.
These instructions normally use language, terms and phrases regularly used by the supposed sender, and will often express urgency and privacy to encourage the recipient to act quickly without asking questions.
Such frauds may combine a cyber breach that enables the fraudsters to misdirect emails and view correspondence between the CEO and their contacts.
Vishing takes the form of a call apparently from a trusted source, often a bank's Fraud Dept, saying that the person being called must take some action to protect the firm's money.
They caller might ask you to download software that will allow them to take remote control of the computer, or to disclose passwords/ card-reader codes so the attacker can set up fraudulent payments.
They might even try to trick the victim into moving money to accounts described as safe/secure.
This is the redirection of a payment intended for a genuine supplier/contractor. An instruction is received advising of a change of bank account or a forged invoice, which appears to be from a regular supplier/contractor requesting payment to a nominated account.
This is a common fraud that relatively simple processes and procedures will help to prevent.
If there is anything related to fraud and cybercrime you would like to discuss, contact Crowe’s Forensic Services team. The head of the team, Jim Gee, would be happy to discuss your particular circumstances and what specific steps would be most appropriate for your business.
If you would like to speak to the Lloyds Banking team to discuss Fraud and cybercrime in further detail please contact Dave Atkinson, UK Head of Manufacturing, SME & MM Commercial Banking.