P&I correspondents are being urged to enhance their payment verification procedures following a fraudulent email interception that diverted a $200,000 crew claim settlement, as reported by the International Transport Intermediaries Club (ITIC). In a recent case, a fraudster impersonated various individuals involved in a sensitive settlement process, exploiting the emotional context to facilitate the scam.
Mark Brattman, ITIC’s Claims Director, emphasized the sophistication of payment-interception fraud, noting that it often targets high-value transactions in sensitive situations. The quality of fraudulent emails has improved significantly, making it challenging to identify scams solely through content analysis. Any alterations to bank details should raise immediate concerns, particularly if the details differ from the payee’s actual location or name.
The fraudster provided fake bank information and documents, leading the correspondent to unwittingly transfer the settlement amount to a fraudulent account. The deception was uncovered only when the actual family inquired about the payment. The correspondent promptly notified the P&I Club, which subsequently engaged legal counsel to ensure proper settlement and cover the additional costs incurred.
ITIC assessed the incident as a failure to verify communications and bank details before authorizing payment. They urged correspondents to implement robust fraud prevention measures, including verifying identities through secure communication channels.
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