Banking fraud


New Member
I'm a practising accountant/auditor.

It happens to a client of me about a month ago.

My client used to work with a company in South Korea. They had regular email communication with the Korean company and generally they were communicating their business matters through email exchange, i.e. placing orders, arranging payments, sending proforma invoices, invoices, confirmation of payments, etc.

During the process of a regular transaction, the Korean company asked for the payment of the goods, before the shipment (my client was the buyer). This was a normal trading practice between my client (the buyer and the Korean company. However, this time, the Korean company asked for the payment to be done in a bank account in Vietnam, where the legal owner of the account was a different company, the name of which was similar with the Korean company.

My client, has asked and confirmed, by return email, whether they have indeed wanted the payment to be done to this particular company in Vietnam, instead to the bank account of the Korean company in Korea. They have confirmed him that from now on they will receive payments in Vietnam.

My client, has done the mistake and sent the money to the Vietnamese bank! To cut the story short, he has lost $20.000 aprox. What happened? Hackers have managed to break the security systems of the Korean company and were using the emails of the company. They were replying to clients' requests and diverting payments to bank accounts that they were controlling in Vietnam!

Be careful. In such cases it's better to pick-up the phone and speak to the other party and confirm any unusual changes in the way you used to work so far!