Impersonation Fraud: Protecting You & Your Business
In today’s digital world, businesses face ever-evolving challenges that threaten their operations. A particularly concerning issue that has become more common recently is impersonation fraud.
Plastribution is sadly seeing this type of fraud happening more regularly by scammers, who are falsely using our name to target other businesses.
We have compiled some advice around what to look out for to avoid becoming a victim of this type of scam.
What is Impersonation Fraud?
Impersonation fraud occurs when criminals disguise themselves as legitimate company representatives, typically via email, text, messaging platforms like WhatsApp or phone, to initiate transactions, gain sensitive information, or divert payments to their own accounts.
Fraudsters often use convincing tactics such as fake websites, forged documents and emails that closely resemble genuine corporate communications. These fraudulent acts are becoming increasingly sophisticated, making it harder to detect the deception.
We have noticed an alarming increase in reports that fraudsters are targeting polymer suppliers through impersonation scams. These individuals pose as representatives from well-established businesses, including Plastribution, in an attempt to deceive and exploit unsuspecting companies. The implications of such schemes can be devastating, leading to financial losses, supply chain disruptions and damaged reputations.
We strongly advise all existing suppliers to verify any changes in delivery location by contacting a known Plastribution representative through established communication channels.
Examples of How Scammers Have Used Impersonation Fraud to Target Businesses
Raising Fake Purchase Orders:
Fraudsters may impersonate a legitimate customer and submit fake purchase orders for products, directing the supplier to deliver goods to a fraudulent or non-existent location.
The scammer may then intercept the delivery and disappear with the goods without payment.
Requesting Bank Detail Alterations:
A scammer may pose as a trusted supplier or customer and request changes to bank account details for upcoming payments.
The unsuspecting business could then transfer funds to the scammer's account instead of the legitimate recipient.
Fake Supplier Setup:
Scammers may impersonate a legitimate polymer supplier and offer attractive deals or discounts, convincing a distributor to place an order.
Once payment is made, the scammers disappear without delivering the goods.
Phishing Emails:
Scammers can send emails that look like they come from a legitimate business partner, asking for sensitive financial information or login credentials.
Once obtained, they can access the company’s accounts or payment systems to steal funds.
* Please note: this is by no means an exhaustive list of techniques – please remain vigilant to new methods of impersonation fraud.
Protecting Your Business & Yourself
Below are some steps you can take to protect your business from falling victim to such schemes:
Verify All Communication
Be cautious of any unexpected requests for payments or changes in banking details. Always verify the authenticity of such requests by contacting your known business representative directly through established channels.
Scrutinise the Authenticity of Delivery Locations
Especially if they are in a different country. Always conduct visits to new customers whenever possible. Although not always the case, it's quite often that goods involved in these types of scam are intended for export to African countries like Uganda.
Check Financial Information & Registered Addresses
Don't solely rely on credit reference reports or supplied financial data - conduct your own research and cross check any registered addresses.
Watch for Red Flags in Communications
Be on the lookout for subtle inconsistencies in emails, such as:
- Unusual sender addresses
- Spelling & grammatical errors in sender details, subject lines, and/or message body
- Unusual / inconsistently / poorly formatted email signatures
- Inconsistent fonts and branding
- Changes in tone of voice
These can be early indicators of fraudulent activity.
Secure Your Systems
Ensure that your business’ IT infrastructure is protected with the latest security protocols, including firewalls, encryption and regular software updates. This reduces the likelihood of falling prey to phishing scams or data breaches.
Train Your Team
Educate your employees about the risks of impersonation fraud and other types of cybercrime. This will help them to be vigilant when handling sensitive communications and financial transactions.
Report Suspicious Activity
If you suspect that you have been targeted or compromised by impersonation fraud, report it immediately to the relevant authorities and your business partners. Early detection can prevent further damage.
In summary, to protect your interests, Plastribution recommends implementing robust due diligence procedures and adopting ‘KYC’ (know your customer) precautions, including:
- Verifying the legitimacy of the trade through a personally known contact and using previously established means of communication, such as mobile phones or email.
- Scrutinising the authenticity of delivery locations, especially if they are in a different country.
- Conducting visits to new customers whenever possible.
- Validating trade legitimacy by cross-checking registered addresses.
- Not solely relying on credit reference reports or supplied financial data.
- Exercising utmost caution when verifying email addresses.
Your vigilance is crucial in combating this fraudulent activity. Thank you for your support.
