Insight Associates provide outsourced accounting and Finance Director services to ambitious and growing businesses. We work as your only resource or with existing staff to give you complete financial support including monthly management accounts, high level financial advice, robust controls and financial systems, funding and business planning, payroll & compliance, VAT returns and statutory compliance.

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Wednesday, September 24, 2014

Kitty says watch out for fraudulent Purr-chase orders!


While delivering our Outsourced Finance Department service we’re often made aware of situations that all businesses can learn from.

One recent example is a Purchase Order fraud that could potentially incur thousands of pounds worth of costs to unsuspecting victims.

Fraudulent orders were raised purporting to be from a well-known organisation. Those orders were sent to existing and new suppliers (in some cases accompanied by fraudulent telegraphic transfer documents).

Fortunately most suppliers in this instance were quickly able to identify discrepancies in the order process and the National Crime Agency was notified.
If you’re suspicious of a purchase order you have received there are some simple checks you can make:
  • Find an independent contact point for the company and query the order with them. Don’t use email, telephone or website details provided on suspicious paperwork as these are often fake too.
  • Ensure the correct company name/subsidiary name is being used to place the order.
  • Ensure the format of the document is the same as official orders.
  • Be wary of company stamps being used to sign purchase orders rather than actual signatories. 
Do you have a warning story you’d like to share with us?  The lessons you learned could really benefit others.

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