Presentation on theme: "Commercial & Private Banking Presentation to Kent County Council"— Presentation transcript:
1 Commercial & Private Banking Presentation to Kent County Council October 2014
2 Introduction RBS Pat Harvey – Relationship Director Joanna Capon – Assistant Relationship DirectorSandie Shoebridge – Service Delivery Manager
3 Purpose of this Presentation Cheque fraudsDiscuss Invoice fraudCorporate CardsBanklinePhishing sBank note forgeriesAdvice on spotting fraudulent requestsQuestions & answers
4 Cheque FraudThis 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.
5 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”.
6 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 mandateNever leave cheques lying aroundNever hold stocks of pre signed chequesCompare underlying paperwork with all cheques writtenUse cheques in serial number orderEnsure all cheques remain in the book and none are removed from the middle or towards the backUndertake cheque stock and cheque audit regularlyReconcile Bank statementsIf a company contacts you to advise you of non receipt of a cheque ‘ Stop ‘ the cheque immediatelyIf you are due to receive a new cheque book and it doesn’t arrive , Contact the BANK
7 Cheque Fraud Issuing Cheques Always start writing at the far left hand sideWrite 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 usedPay particular attention to the payees nameDo not leave large spaces between the words or £ sign.It is good practice to write the word ‘ only ‘ after writing the amount in wordsNever use the word ‘ Nil’ use the word ZeroYou 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 correctionLimit the value of the cheque by writing in red ‘chequenottoexceedtenthousandpounds’ at the top of the chequeDo not issue post dated cheques
8 Cheque Fraud Accepting Cheques / Bankers Draft Cheques and Bankers Draft can be forged or altered, and you should be wary of any changes / alterationsYou 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 goodsBe 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 alteredIf 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 cashPay cheques in promptly – if you leave it longer than 6 months there is a possibility that the cheque may be returned unpaidNever 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
9 Invoice FraudThere 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.
10 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 dateRemove historic records if payments are no longer being made, as the could be out of dateAlways use established records to obtain Customer contact numbers – Never rely on contact data on an invoice/ /letterhead .Consider how your business identifies and selects new Suppliers . Be wary of Cold Callers /unsolicited approaches by phone
11 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 invoicesYou are personally responsible for all purchases made and statements need agreeing and paper work submitted in a timely mannerIf a card is lost or stolen report it immediately to prevent being responsible for any fraudulent transactionsRun your finger around the Card slot to ensure nothing has been attachedWhen using the card you should cover your hand when keying the PIN and not let the card go out of your sightCards on line – register on cards on line and you will receive an 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 limitAn administrator of the system (perhaps the Bursar) can register on Cards on line and pull off all card statements monthly and to card holders
12 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 reconciliationPayment facility which allows for a number of types of electronic payments to be made including next day or future dated payments and Chaps paymentsPayments can be imported from your accounts package straight through to authorisation in BanklineSystem allows greater control of cash flow, aware of funds received and payments debited on the date of your choiceElectronic 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 dueFriendly Bankline helpdesk in Edinburgh to answer any questions about the system and walk through any issues you may have with youSecure 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
13 Bankline CostsIn 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 monthFuture Dated Faster Payments (BACS) – 28p per paymentCHAPS - £10 per paymentSame Day Faster Payments - £3 per paymentInter Account Transfers - FREEStops – Manual & Electronic - £3.00 per instruction
14 Cost of Issuing Cheques DCL Print cheques £ VAT £ = £1 Cheque = £ 0.18pPostage 1st Class =£ 0.62 p2nd Class =£ 0.53 pCost of each manual debit passed to KCC account =£ 0.075p+ Letter and Envelope and staff time+ time added on for reconciling the Bank statementFuture Dated Faster (BACS) payment = 28pno reconciliation or waiting for cheque to be presentedno postage costs
15 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 elseRemember to check more than one feature i.e. the feel of the paper, the raised print, the water mark and metallic threadBe aware that those trying to pass counterfeit notes will often try to buy a low value item using a high value noteNotes that have been called in are a particular area that counterfeiters targetHelp availableBank of England WebsiteUV lamps and detector pensConsider having a company policy regarding counterfeit bank notes
16 Common Frauds What to look out for, and how to stay safe Change of Bank DetailsOverpaymentClearing CyclePhishing
17 Advice on Spotting Fraudulent Requests Before you pick up the phone or respond to an , 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 involvementYou may notice poor spelling and grammarThere will often be a PO Box number in the contact addressThe fraud may involve payment being made to an unconnected party in a different countryYou get an 'opportunity' to earn easy money in exchange for an up-front cash fee and perhaps your account details
18 Help and AdviceThe following sites provides more information on frauds and how to protect your businessNatWest 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_ pdf)Reporting suspected fraudReport Suspected Fraud Scams to Action Fraud (http://www.actionfraud.org.uk)