Fraudsters are using a mandate scam to cripple fast food businesses.
Over the past three years, the PSNI has received almost 20 reports in relation to fast food and takeaway businesses, participating in an online food order and delivery service, reporting losses as a result of suspected mandate fraud.
Mandate fraud involves the changing of account details for supplier or customer accounts in order to gain control of an account and benefit from unauthorised payments.
In some cases reported, the businesses claim they received a call from a person claiming to represent the online service either asking to verify their details, or advising them of a change of bank account details.
In other reports, some of the business refused to provide any details and there was no financial loss while in other reports, some claim their bank account details were changed without their knowledge.
The end result was the businesses never received payment. The losses reported varied from under £10,000 to £50,000. In reports made to police between 2021 and 2024, the total reported losses is almost £140,000.
‘Consequences’
Superintendent Joanne Gibson from the PSNI said: “Unfortunately, a number of businesses across Northern Ireland have been left to deal with the terrible consequences of this. For some, the losses can be crippling for businesses.”
Northern Ireland Food To Go Association Chief Executive, Michael Henderson, said: “It is regrettable that we continue to receive reports of small businesses falling prey to this type of fraud. The cost of doing business is made even more difficult with this added pressure of fraud which can, in some cases, lead to closure and unemployment within our communities. Anyone who believes they have been targeted by fraudsters in this way, we would urge them please get in touch with Northern Ireland Food to Go Association and make a report to PSNI.”
Advice and information
Superintendent Gibson added: “We can’t stress enough to never ever give out any personal or financial information to an unverified source via email, or over the phone. Remember, criminals go to considerable lengths to impersonate businesses hoping to catch someone who will let their guard down, even for just a moment.
“If you receive a call from someone claiming to be your supplier suggesting they have changed an account number, please ensure you are 100 per cent sure this is the case.
“Don’t take that call or an email as proof and, if you receive a phone call of this nature, contact the company directly, via an independently sourced number, before speaking with them any further. This way you can verify the call and check if it’s genuine. Please, be vigilant, and be on your guard.”
Police encourage any business who may have been targeted in this way, and who have not reported it, to do so now to police Action Fraud and their bank.
