Transcript PowerPoint template

Commercial & Private Banking
Presentation to Kent County Council
October 2014
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Introduction
RBS
• Pat Harvey – Relationship Director
• Joanna Capon – Assistant Relationship Director
• Sandie Shoebridge – Service Delivery Manager
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Purpose of this Presentation
• Cheque frauds
• Discuss Invoice fraud
• Corporate Cards
• Bankline
• Phishing emails
• Bank note forgeries
• Advice on spotting fraudulent requests
• Questions & answers
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Cheque Fraud
This remains one of the largest area of fraud faced by industry
and banks because the risk of fraud is present at virtually
every stage of a cheque’s lifecycle.
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Cheque Fraud
•“ … in the past year the Banking Industry successfully identified over 90% of all fraudulent cheques as they went through the cheque clearing process”.
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Cheque Fraud
How do you ensure you do not become a target?
• Always keep cheques in a secure place and always separate from the bank mandate
• Never leave cheques lying around
• Never hold stocks of pre signed cheques
• Compare underlying paperwork with all cheques written
• Use cheques in serial number order
• Ensure all cheques remain in the book and none are removed from the middle or towards the back
• Undertake cheque stock and cheque audit regularly
• Reconcile Bank statements
• If a company contacts you to advise you of non receipt of a cheque ‘ Stop ‘ the cheque immediately
• If you are due to receive a new cheque book and it doesn’t arrive , Contact the BANK
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Cheque Fraud
Issuing Cheques
• Always start writing at the far left hand side
• Write your cheques using a black or Blue Ballpoint pen or a pen with indelible ink. If you enter details with a printer make sure
approved machines and Toners are used
• Pay particular attention to the payees name
• Do not leave large spaces between the words or £ sign.
• It is good practice to write the word ‘ only ‘ after writing the amount in words
• Never use the word ‘ Nil’ use the word Zero
• You should draw a line through all unused spaces so fraudster cannot write in extra names or change the amount. If you print the
cheques ensure that software adds in any blank spaces with asterisk ******
• If you need to make amendments these should be made clearly by crossing through the error and initialling or signing the correction
• Limit the value of the cheque by writing in red ‘chequenottoexceedtenthousandpounds’ at the top of the cheque
• Do not issue post dated cheques
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Cheque Fraud
Accepting Cheques / Bankers Draft
● Cheques and Bankers Draft can be forged or altered, and you should be wary of any changes / alterations
● You should always try to accept a cheque or Bankers Draft only if you know and trust the customer
presenting the Cheque and or Bankers Draft for payment of goods
● Be aware until the end of the 6th working day after you have paid a cheque into your account there is still a
risk the bank can reclaim the money should the cheque turn out to be stolen, counterfeit or fraudulently
altered
● If you are selling high value goods, then always ask for a safer payment to be made via electronic means
e.g. chaps, faster payment or cash
● Pay cheques in promptly – if you leave it longer than 6 months there is a possibility that the cheque may be
returned unpaid
● Never accept a cheque for a higher amount than you are expecting especially if the drawer is requesting a
refund immediately of the overpaid amount by electronic means
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Invoice Fraud
There is an increasing trend in this type of fraud where the
fraudster is seeking to induce a change in bank account
details that may be held in an office management system or
simply for a one-off payment to be made to their account.
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Invoice Fraud
How do you ensure you do not become a target?
• Ensure any request to change bank details for a payment to be made is verified by calling a known contact at the Company to
confirm the change.
• Regularly review records held on your system to ensure they are still up to date
• Remove historic records if payments are no longer being made, as the could be out of date
• Always use established records to obtain Customer contact numbers – Never rely on contact data on an invoice/ email/letterhead .
• Consider how your business identifies and selects new Suppliers . Be wary of Cold Callers /unsolicited approaches by phone
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Corporate Cards
What do I need to remember
•A card purchase is a purchase on behalf of the school and the normal procurement rules apply, including receipts or invoices
•You are personally responsible for all purchases made and statements need agreeing and paper work submitted in a timely manner
•If a card is lost or stolen report it immediately to prevent being responsible for any fraudulent transactions
•Run your finger around the Card slot to ensure nothing has been attached
•When using the card you should cover your hand when keying the PIN and not let the card go out of your sight
•Cards on line – register on cards on line and you will receive an email when your monthly statement is ready to print. Cards on line
also allows you to view your expenditure at any point in the month and be aware if you are approaching your limit
•An administrator of the system (perhaps the Bursar) can register on Cards on line and pull off all card statements monthly and email
to card holders
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Bankline – Ease of use
Features and benefits
• An easy to use, internet based system which allows you to view real time information on your account and export details into your
accounts package for monthly reconciliation
• Payment facility which allows for a number of types of electronic payments to be made including next day or future dated payments
and Chaps payments
• Payments can be imported from your accounts package straight through to authorisation in Bankline
• System allows greater control of cash flow, aware of funds received and payments debited on the date of your choice
• Electronic payments are quicker and cheaper to prepare and send than cheques, with no postage and stationery fees.
• Payments can be diarised for up to 90 days in the future allowing payments to be authorised in term time and released during the
holidays when invoice due
• Friendly Bankline helpdesk in Edinburgh to answer any questions about the system and walk through any issues you may have with
you
• Secure internet system as long as the three golden security rules are followed: We will never ask you for your full PIN or password,
only 3 random digits from each, we will never ask for your PIN, password or smartcard codes over the telephone and we will never
ask for smartcard codes to log into the system, they are only used to authorise payments
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Bankline Costs
In agreement with the Council NatWest have already tailored a school’s package. We currently
allow the schools to have their own Internet Bankline facility to access up to 3 bank accounts
(including school fund accounts) for a fee of £5 per month. This also includes a BACS
Payment facility, historical statement information and free voucher imaging.
Balance transactions and FREE voucher imaging – £5 per month
Future Dated Faster Payments (BACS) – 28p per payment
CHAPS - £10 per payment
Same Day Faster Payments - £3 per payment
Inter Account Transfers - FREE
Stops – Manual & Electronic - £3.00 per instruction
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Cost of Issuing Cheques
DCL Print
1000 cheques £ 155.50 + VAT £27.21 = £ 182.71
1 Cheque = £ 0.18p
Postage 1st Class =£ 0.62 p
2nd Class =£ 0.53 p
Cost of each manual debit passed to KCC account
=£ 0.075p
+ Letter and Envelope and staff time
+ time added on for reconciling the Bank statement
Future Dated Faster (BACS) payment = 28p
no reconciliation or waiting for cheque to be presented
no postage costs
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Bank Note Forgeries
What to look out for, and how to stay safe
• Be vigilant at all times, and check notes that are being passed for all payments, chances are if someone is trying to pass counterfeit
notes and they see you checking them they will try to pass onto someone else
• Remember to check more than one feature i.e. the feel of the paper, the raised print, the water mark and metallic thread
• Be aware that those trying to pass counterfeit notes will often try to buy a low value item using a high value note
• Notes that have been called in are a particular area that counterfeiters target
Help available
• Bank of England Website
• UV lamps and detector pens
• Consider having a company policy regarding counterfeit bank notes
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Common Frauds
What to look out for, and how to stay safe
• Change of Bank Details
• Overpayment
• Clearing Cycle
• Phishing
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Advice on Spotting Fraudulent Requests
Before you pick up the phone or respond to an email, fax or letter, look out for the telltale signs – and think carefully
about what you are being invited to do:
• A fraud will usually offer you something for nothing, when you have had no previous correspondence or involvement
• You may notice poor spelling and grammar
• There will often be a PO Box number in the contact address
• The fraud may involve payment being made to an unconnected party in a different country
• You get an 'opportunity' to earn easy money in exchange for an up-front cash fee and perhaps your account details
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Help and Advice
The following sites provides more information on frauds and how to protect your business
• NatWest Security Advice Centre (http://www.natwest.com/commercial/planning/g2/security-advice-centre.ashx)
• Streamline (http://www.streamline.com/customer-zone/reducing-fraud/)
• Bank of England (http://www.bankofengland.co.uk/banknotes/about/faqs.htm)
• Office of Fair Trading (http://www.oft.gov.uk/business-advice/protect-your-business-from-scams/types/)
• Action Fraud (http://www.actionfraud.org.uk/resources-information-for-businesses)
• Advice on Writing and Receiving Cheques (http://www.chequeandcredit.co.uk/files/candc/press/cheque_advice_guide_29.10.10.pdf)
Reporting suspected fraud
• Report Suspected Fraud Scams to Action Fraud (http://www.actionfraud.org.uk)
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Questions and Answers
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