Business payment fraud can start with something as ordinary as an invoice from a familiar supplier. The amount looks right and the email seems genuine, but the bank details have changed. Criminals may impersonate a trusted contact or access a genuine email account to redirect payments into their own account. Whether you pay suppliers locally or overseas, independently checking new or changed payment details before sending money is an essential step in protecting your business. At Tasman Foreign Exchange, we want our customers to be fraud aware and on high alert for evolving payment scams so they can protect their businesses.
In the words of Steve Jobs; “Details matter. It’s worth waiting to get it right.”
How payment scams can catch businesses out
Imagine you are expecting an invoice from an overseas supplier. An email arrives within your existing conversation, explaining that the supplier has changed banks. The attached invoice shows the goods you ordered and the agreed amount, so you arrange payment using the new details provided.
However, the supplier’s email account has been compromised. A fraudster has altered the invoice, and your payment goes to their account instead.
This is one form of business email compromise. Because criminals can use genuine accounts and details from previous correspondence, checking the sender’s address alone is not enough.
Warning signs of business payment fraud
Take extra care when a payment request includes:
- New or changed bank details, particularly for a supplier you have paid before.
- Pressure to act quickly, such as a claim that payment must be made immediately to avoid a delivery delay.
- Changes to contact information, including a new telephone number provided alongside payment instructions.
- Instructions to bypass your usual checks, or keep a payment confidential.
- An unusual email address, even if the sender’s name and company branding look familiar.
These signs should prompt further checks, but a fraudulent request may contain no obvious errors. Make independent verification a routine step for every new beneficiary and any change to existing payment details.
Five checks to help prevent business payment fraud
Before instructing Tasman FX to pay a new beneficiary or use changed bank details, always take the following steps within your business to confirm that the instructions are genuine.
1. Call your supplier or intended payee
Use a known telephone number you already hold and trust, or one you have independently verified. Do not use a new number supplied in the email or invoice you are checking. Do not email them to confirm. This will not work if your own, or their account has been compromised.
If someone calls you to confirm the change, ask to call them back using your own trusted contact details. Australian government guidance on preventing business email compromise recommends checking suspicious requests through a separate, verified contact channel.
2. Confirm the bank details directly
Speak with someone at the supplier’s business who is authorised to confirm its banking instructions. Check the account name, account number or IBAN, and relevant bank or SWIFT details against the instructions you have received.
Confirming that the supplier sent you an invoice is not enough. You need to establish that the bank details on your copy are correct.
3. Verify changes to contact information
Check requests to change a supplier’s telephone number through an existing trusted contact before updating your records.
Otherwise, a later call to verify bank details could go to a number controlled by a fraudster.
4. Make the checks clear within your team
Ensure the person at your business instructing Tasman FX knows whether the details have been independently verified. Keep a record of who completed the check, who they spoke with and what was confirmed.
If more than one person handles your payments, do not assume a colleague has checked the bank details simply because an invoice has been approved. Ensure all staff are well aware of the processes in place to ensure any payment checks have come from a trusted person.
5. Resolve any uncertainty before authorising payment
If you cannot verify the instructions, hold off authorising the payment. Contact your Tasman FX dealer if you have concerns about a payment you are arranging through us.
TFX Online requires two-factor authentication when loading new payees and authorising payments. These controls help protect access and authorisation, but they cannot establish whether banking instructions you have received by email genuinely came from your supplier. Your independent telephone checks with the intended payee remains essential.
What to do if you suspect a scam
If you have instructed Tasman FX to make a payment and later suspect the details are fraudulent, contact your dealer immediately. Do not wait for the supplier to confirm that the payment has not arrived.
Tell us which payment is affected, what raised your concern and whether you suspect an email account has been compromised. Keep the relevant emails, invoices and payment instructions to help with enquiries.
Depending on the payment’s status, we can contact the banking partner involved and request recovery where appropriate. Once a payment has been sent, recovery can be very difficult and is not guaranteed, so prompt notification is essential. If you made the payment through your bank or another provider, contact them immediately.
If you suspect that your business email account may have been compromised, contact your IT support provider promptly to secure it. For further guidance, see:
- New Zealand: Own Your Online’s business email compromise guide.
- Australia: Australian government guidance on recovering from business email compromise.
Make payment verification part of everyday business
Reducing the risk of business payment fraud starts with awareness. education and consistent processes. Even when an invoice looks familiar or a payment is urgent, take the time to verify new or changed banking instructions.
Before instructing Tasman FX to pay a new beneficiary or use revised bank details, always call the intended payee on a trusted number and confirm the details directly with a known person. A brief pause before payment can prevent a costly mistake.
Your checklist before authorising a payment
Before instructing Tasman FX or your other bank to pay a new beneficiary or use changed bank details, ask:
- Have we called the intended payee on a trusted number we already hold or have independently verified?
- Have we confirmed the actual bank details, rather than simply confirming that an invoice was sent?
- Do we know who completed the check and who they spoke with?
- Have we checked the sender’s full email address for discrepancies? Even one changed letter or number can be a warning sign. A correct address does not rule out a compromised email account.
- Have we resolved any unusual instructions or pressure to pay urgently?
If any answer is no, pause and complete the checks before authorising any payment.
Why choose Tasman FX for your business payments?
At Tasman FX, we combine personal service with practical options for managing your foreign exchange and international payments. With our services, whether you need a spot transaction for an upcoming payment, a forward exchange contract to secure a rate for a future date, or help receiving funds from overseas, your dedicated dealer can explain the options available to you. Unlike most banks, at Tasman FX, you always have a familiar point of contact to discuss your requirements or raise concerns before proceeding with a payment.
