Payment diversion fraud (PDF) involves cyber criminals posing as a trusted supplier and manipulating individuals within the business to make a false bank transfer or other payment. In 2022, the average cost of a claim for customers requiring help (following an attempted or successful PDF attack) was £15,484**. These claims tended to be more prevalent in May and November, as businesses either prepared for a busy summer or festive season.
A total of 982 UK businesses were surveyed for the report, which found that for this type of fraud, company size is not a discriminating factor. Criminals are more interested in businesses suffering from weakened IT systems or otherwise rely on human error, with the latter being the most common reason for a business falling victim to this type of scam.
Steps to take to prevent PDF
- Make a test payment to the payee and check they receive the money before transferring a large sum.
- Take time to check a change of bank details notification - it may not be genuine. Contact the payee on the number you know is correct to confirm their details have changed.
- Carry out regular training to remind employees what to look out for when making payments, and the steps they should take to ensure due diligence.
- Change passwords on a regular basis and make them complicated so that they are not easily identifiable. Use Multi Factor Authentication to help accounts, such as email, from being compromised.
- Adopt a four eyes approach - dual signatories for payments over a certain amount.
- Carry out regular checks on IT equipment to ensure there are no weaknesses in the systems.
- If you are in doubt about the transaction, don't hand over the money.
- If you realise it is a scam, contact your bank immediately.
In 2017, Hiscox introduced the
Ends
Notes to Editors
* The Hiscox Cyber Readiness Report 2023 was compiled in collaboration with
** Based on Hiscox
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Notes to editors
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