Beware of Scams: Cautionary Tale on Supplier Bank Account Changes

ABC Sdn Bhd recently fell victim to a scam involving a change in the overseas supplier's bank account number. The finance department received an email from the supplier's domain notifying them of the change, and, trusting the legitimacy of the communication, proceeded with the overseas payment to the updated account.

Several days later, the supplier contacted ABC's finance department to inquire about the payment status. To their shock, ABC's finance department revealed that the payment had been made to the new account. Upon further investigation, it became clear that the bank account did not belong to the actual supplier. Unfortunately, ABC Sdn Bhd had fallen prey to a scam.

This incident serves as a stark reminder to businesses to exercise caution when faced with changes in supplier bank information, even if the communication appears to be from a legitimate source such as an email with the same domain and a letter on the supplier's letterhead. Implementing a standard operating procedure (SOP) for verifying changes to suppliers' information is crucial for strengthening internal controls. Consider obtaining confirmation from the supplier's finance manager before releasing payments to new bank information.

If you have any doubts or concerns, please feel free to reach out to me. I prefer WhatsApp over calls during meetings.

Ten Jia Sheng
014-911 1880

21 Jan 2024