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Company lost more than €2.1m to email invoice fraudster

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Gardai have warned public to be cautious after Dublin-based firm lost huge lump sum

Gardai have warned public to be cautious after Dublin-based firm lost huge lump sum

Gardai have warned public to be cautious after Dublin-based firm lost huge lump sum

A Dublin-based business lost more than €2.1m after being scammed into transferring money into a fraudster's account.

However, after the matter was reported quickly, gardaí contacted police in Hong Kong, and the money was secured and its return is being arranged.

Gardaí yesterday warned the public of the continuing existence of 'Invoice Redirect Fraud' and to treat any request to change bank account details with extreme caution.

In a statement, gardaí said that on August 11, Bank of Ireland reported to the Garda National Economic Crime Bureau (GNECB) that a business customer of theirs had been the victim of an invoice redirect fraud and had lost just over €2.1m.

Account

"The Dublin-based business was making a payment to a UK-based business when they received an email purporting to be from this UK business asking them to send the payment to a new bank account number.

"The Irish business did their due diligence and contacted the number supplied in the email and the person who answered the phone confirmed that all was correct. The money was then sent to the new bank account which transpired to be in Hong Kong.

"It is now known that the phone number contained in the email was also incorrect and the business was actually talking to the fraudster," gardaí said.

On receipt of the complaint from Bank of Ireland, GNECB immediately initiated enquiries with the injured party in Dublin and with the bank in Hong Kong before seeking the assistance of the authorities in Hong Kong.

Following investigations conducted by the Police in Hong Kong on behalf of GNECB, the stolen money was secured in an account there and the return of the money is being arranged.

Detective Superintendent Michael Cryan said: "In many instances the business does not know it is a victim of this crime until some time later when the legitimate supplier sends a reminder invoice for payment.

"It is important to note that victims of Invoice Redirect Fraud range from very small businesses to large corporations and the consequences of falling for a scam of this nature can be catastrophic and can result in the closure of businesses and redundancies so all employees should receive training in relation to avoiding this type of scam.

Criminal

"In this case, gardaí with the assistance of Bank of Ireland and the Police in Hong Kong were able to secure this money and ensure it did not fall into the hands of an international criminal organisations.

"This money was secured because Bank of Ireland acted quickly and reported the matter to gardaí as soon as they became aware of it. Early reporting is essential if there is to be any hope of retrieving the stolen money.

"This is an excellent example of the co-operation that exists between GNECB and the financial institutions in Ireland."

Gardaí advised the public to be wary of such crimes and advised that great care and attention should be given each time they are asked to change bank account details.