Project Description

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Narrator: Ryan Pilgrim, Treasury Manager, Liberty Diversified International

Liberty Diversified International is one of the largest privately owned companies in the Midwest.  We were established in 1918, and we focus on paper and packaging and workspace solutions.

Our first experience with impostor fraud was one of our vendors from Asia had contacted us stating that their corporate headquarters was requesting bank changes.

We were told to wire our money to the new bank accounts they had set up.

There were no red flags in this request. The email came through at the usual time of day that it does. And it was from the vendor’s real email address.

After this first fraud attempt, we implemented a new process change to verify any new bank account information.

We now follow up via a different means of communication than the original request.

Employees are also required to use the contact information we have in our business system to follow up.

We were surprised to find out that this type of fraud is not covered under our original crime policy because it’s not against the law to willingly send money to a fraudulent bank account.

Due to the new process that we have in place, we were able to get that additional coverage.

So the advice I would give to other companies is make sure that you have a good internal process.  Make sure that all of your accounts payable and purchasing employees know the new process.

And, finally, work with your risk manager or insurance company to make sure that you’re covered for this type of fraud.

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