Fraudulent Letters Call For Caution

The number of fraudulent letters has yet again increased. The new trend is the BEC scheme during which the information exchange between companies is hacked and at the suitable moment an invoice with changed bank account is sent by someone pretending to be a partner company.

During the recent months, the State Information System Authority (RIA) has received at least 40 notifications on such fraudulent invoices, during the year, the police has processed around a hundred of such cases. In November, an Estonian company providing heating systems, received a notice, which seemed to be from a business partner, that they are auditing their company and requested that this time the invoices would be paid to a different bank account. Thus, it happened that the company transferred 300,000 euros to the criminals based on various invoices.

The actual possibility not to lose your money is when the fraud is discovered immediately after the payment is done. When the fraud is notified quickly, the banks can withhold the payment and not process it. The easiest way to prevent this type of fraud is to make a call by which the parties confirm that they have sent the invoice and have made changes to what has been agreed before.

Fraudulent correspondence comes from and addressee who requests payment of invoice

There are still many fraudulent emails sent to accountants, which seem to have been sent by the manager or an executive of the company, requesting, in a brief manner, to pay an invoice. No invoice has been attached to the email. When the accountant replies to the email, only an invoice is sent in response and if it is paid in good faith, the company may suffer financial loss. Before paying anything, it would be reasonable to ask personally from the sender if it really is their request.

Fraudulent letters on paper

The fraudulent letters on paper request sending the value added tax registration number (KMKR) to a foreign database. These are fraudulent letters, the footer of which features a notification in a tiny grey print that by sending the data, the company agrees to pay 771 euros during the next three years.

After responding to the letter, the company will receive invoices to the aforementioned sum. However, if the company does not pay the invoice, they will receive reminders and claims with increasing sum of money and a fine for delay. Paying the invoices and sending a request to terminate the contract has not yielded any results – the claims will continue, and the company can do little else than to ignore the invoices and claims and hope that the wave of letters will end at one point.

How not to fall into a trap:

1. Read all questionnaires and letters carefully, even the small print that may hide the largest hooks.
2. Never sign any documents that you do not understand fully. Any document that is signed may prove to be a contract that brings along obligations.
3. If necessary, train and inform your employees who deal with payments and administrative duties daily.
4. If necessary, call your partner and check if they sent the invoice and if there have been any changes in what has been agreed on.
5. If in doubt, you can ask for consultations from the legal specialists of the Chamber by writing to: juristid[at]koda.ee.