Commercial Branch

BANKING CRIMES

Deposit Slip Scams

HOW THE SCAM WORKS

Scenario A

• Supplier is approached via telephone or e-mail with an order

• A deal is structured, usually involving a direct deposit into the supplier’s bank account

• A copy of the stamped bank deposit slip for cash is faxed to the supplier

• Goods are released to fraudsters

• A fraudulent cheque is deposited instead of cash and the deposit slip is fraudulently amended

• The cheque is unpaid due to it being fraudulent

• The supplier’s bank account is debited

• The supplier is unable contact the “client” and suffers the loss

Scenario B

• Supplier is approached via telephone or e-mail with an order

• A copy of a stamped bank deposit slip for cash, for a higher amount than agreed to, is then faxed to the supplier

• The “client” then contacts the supplier and requests that the excess amount be electronically transferred to a specified account

• On the strength of the faxed copy of the deposit slip, the supplier refunds the excess amount

• A fraudulent cheque was deposited instead of cash was deposited and the deposit slip was fraudulently amended

• The cheque is unpaid due to it being fraudulent

• The supplier’s bank account is debited

• The supplier is unable contact the “client” and suffers the loss as the funds have already been withdrawn from the fraudsters account

Scenario C

• A supplier is approached by telephone or e-mail with a request to place an urgent order

• A deal is structured, usually involving a direct deposit to the bank account of the supplier

• An internet transfer receipt is fraudulently manipulated to reflect a “transfer” to the suppliers account. The transfer could be for the exact amount of the order as in Scenario A, or for an amount in excess of the agreed amount as in Scenario B

• The fraudulent Internet Receipt is faxed to the supplier

• The goods are released to the criminals OR the “excess” refunded as previously described

• The bank account of the supplier is debited with the “refund”, but the incoming transfer never materializes

• The supplier is unable to contact his “client” and suffers the loss

Scenario D

• A cheque is deposited to an unsuspecting client’s account without their knowledge

• A letter on a false letterhead purporting to be that of a well known entity or institution is faxed to the client in which it is said that an amount has been paid to the client’s account. The letter provides details of an account to which the “refund” must be made

• The client is sometimes contacted by someone who then confirms the content of the letter, stating that it is important to affect the refund very urgently

• The client makes the payment

• The cheque is unpaid, leaving the client to suffer a loss

DO’S

• Contact the entity or institution on a number ascertained from the telephone directory and confirm the request

• Be cautious of clients who want to “keep their distance”

• Retain complete records

• Confirm details of payments with your bank

DON’TS

• Do not be pressurised due to urgency

• Do not relax controls and procedures

• Do not proceed if you have any doubts

• Never use the number provided by a caller or provided on a faxed letter

GENERAL

• Media Statement: Widespread Deposit slip and Refund scams [2006-04-13]

• National list of dedicated deposit slip/refund scam investigation officers

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