SYB May:June 2022 FLIP - Magazine - Page 8
ADVICE
Being Vigilant
could save you money....
Businesses warned to be vigilant when paying bills or switching suppliers as
invoice scams make up 55 per cent of money lost to scammers
• Nearly nine in 10 (85 per cent) owners are worried
about the effect the upcoming price hikes will have on
their business, which could leave them open to invoice
scams as they search for the best deals
• Barclays is urging businesses to stay vigilant as data
shows invoice scams account for 55 per cent of all
money small businesses lost to scammers1
• Barclays data has also shown that the average value of
funds stolen has increased 13 per cent
Businesses are being urged to stay vigilant when paying
their bills or changing supplier, as new data1 from Barclays
reveals that in the last three months, fraudsters stole the
most money from SMEs through invoice scams.
Invoice scams are when fraudsters divert genuine
invoices or payment instructions sent by email, often
from a familiar supplier or contact, and send a replica
email with the with bank details changed to an account
controlled by them. Barclays data has shown that this
type of scam accounted for 55 per cent of all money lost
by SME clients in the last three months, up six per cent
year-on-year, with an average loss of £2,100.
The overall amount stolen from SMEs has gone up 13
per cent over the last year, despite the volume going
down, indicating that scammers are succeeding in fewer,
higher value scams, and business owners are at risk of
making greater losses.
A recent poll of UK businesses2 reveals that 85 per cent
are worried about the effect the upcoming price hikes
and increased operating costs will have on their business.
Over half (56 per cent) said it will have an impact on their
bottom line.
8 STEER YOUR BUSINESS
Nearly 9 in 10 (85 per cent) said they would be willing
to switch to a supplier they haven’t heard of before if
they were offering a better price. Barclays is warning
business owners to be on their guard as they look to
switch suppliers to find the best deal, as fraudsters may
impersonate suppliers and provide updated bank details
or information for payment.
Whilst invoice scams have been the most profitable
for scammers in the last three months, purchase scams,
where businesses buy items that do not arrive, were the
most common type. This was followed by impersonation
scams, where fraudsters pretend to be from trusted
organisations.
Ben Lebus, founder of healthy recipe website Mob
Kitchen, said: “As a business owner myself, I understand
the pressures of running a company. Naturally, you
look to save on costs wherever and whenever possible.
Particularly at the start of the financial year, all outgoings
can feel especially difficult to manage, but it’s important
to stay vigilant when thinking about changing suppliers or
providers.
“Spending extra time researching in the early days, will
save you time and money in the long run. I am always
cautious when making big decisions that determine the
future of the business, and I am similarly cautious when
making the smaller decisions around spending.”
Joe Cooksey, Head of Business Digital Education at
Barclays, said: “Businesses are under a huge amount of
pressure at the moment as they prepare for the new
financial year and navigate additional challenges wrought
by rising costs. We know that fraudsters will be looking to
take advantage of busy business owners and will ramp up
their efforts.
