Fake Email Why We Ask for Signatures

Fake Email Why We Ask for Signatures.

A financial adviser, not us we hasten to add, has been ordered to pay £65,000 compensation because he did not check that an email received from his client to cash in an investment and send the funds to a bank account was genuine.

The clients email account had been hacked and it was fraudsters sending emails and alternative bank account details.

The £250,000 investment was cashed in and the money sent to the ‘fake’ account.  The police managed to recover £185,000 resulting in a £65,000 loss.

Comment

Clearly there was a failure by the adviser.  Whilst the adviser thought the email was genuine, it should have been checked, particularly when initially, a new overseas bank account number was offered.   This is why, despite some of our clients suggesting we ‘move into the digital age’ and accept email and electronic signature instructions, we always get things in writing and talk to you either face to face or by telephone.  We are doing this for both yours and our protection.