Risk warning regarding fraud against customers in southern Africa (2013-02-13)

Summary

This is a risk warning issued by the Guernsey Financial Services Commission alerting licensees to an increase in fraud targeting customers based in southern Africa. Fraudsters intercept post or email from licensees and then use the obtained details to divert payments, often to bank accounts in the Far East and China. The notice sets out suggested risk management steps for licensees to consider adopting, developed with input from Guernsey Police and industry experience.

• Discreet mail: Avoid using envelopes that identify the sender as a financial services business.
• Caller verification: Confirm callers requesting changes to file details are genuine customers using usual security checks such as call back or security questions.
• High risk change requests: Call back on existing contact details to verify instructions to change details for high risk customers or those based in southern Africa.
• Signature and bank detail checks: Verify signatures on transaction requests from southern African customers and check redemption instruction bank details against records held on file, following up discrepancies by call back.
• Unusual payment destinations: Give close attention to and verify by call back any payment requests to China, the Far East, or other non Appendix C jurisdictions where the customer has no prior connection to that region.
• Customer notification: Notify affected customers that transactions and confirmations of detail changes may be subject to slight delays due to enhanced security measures.

The Commission describes these measures as suggestions for consideration rather than an exhaustive or mandatory set of anti-fraud controls, and notes they may usefully be applied to all customers, not only those in southern Africa.

Applies to

Guernsey licensees (financial services businesses)