Protect Yourself From Corruption
Electronic Fund Transfer (EFT) fraud is the illegal transferring of funds from one bank account to another. It usually occurs when employees, who are responsible for loading payment details onto a banking system, add in the incorrect details either accidentally or intentionally, resulting in the funds transferring to the incorrect account. This can happen easily since electronic payments do not require the name of the account or person to be paid. With this knowledge, corrupt employees have the potential to enter their own personal bank details instead. The supplier or person who is meant to be debited will eventually notice that they have not received the funds.
Because access to payment systems is restricted to employees in the financial department, they are responsible for making EFT’s to suppliers. They have the authority to capture the payments. Once the release takes place, the transaction is automatically uploaded into the banking institutions system and the payment process is then initiated. An innocent employee might receive a fraudulent email or an invoice that has been tampered with from someone acting as a supplier who asks for bank details to be changed on the system. A corrupt employee could manipulate EFT’s and take home the funds meant for someone else.
Why You Need MyCybercare Cover
Without conducting internal audits on changes to bank account details at least once a quarter, businesses can be subject to a massive lawsuit if their suppliers have not received the funds meant for them. Any amendments made to the details on the business’s banking system should be verified by the bank and internal IT department. Often banks are reluctant to disclose the personal information of any account holders. Individuals and businesses who make EFT payments regularly, should protect themselves against this type of crime. MyCybercare provides excellent cover in the event that something like this should affect an individual or business.