Scamwatch: that's not an email from your boss

Stay one step ahead of the fraudsters with our series of articles giving you the lowdown on the scams they use to trick people out of their hard-earned cash - and how to avoid being taken in by them.

This week, we investigate a new money transfer scam with which criminals pose as your boss.
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How does it work?

Employees are being warned to be on their guard against fraudulent money transfer emails that appear to come from senior colleagues, such as the company finance director or chief executive.

The emails request an urgent payment, often for a pressing reason such as the need to secure an important contract.

But the account to which the payment is made is in fact controlled by fraudsters who quickly withdraw the money once it arrives.

Financial Fraud Action UK has issued a warning about the scam, which involves hi-tech software and email hacking techniques that make the emails look genuine.

Katy Worobec, director of Financial Fraud Action UK, said: "Fraudsters will do all they can to make these scam emails look genuine, so it's important for businesses to be alert."

How can I avoid being caught out?

If you receive an unusual payment request from anyone in your company, it is always a good idea to check it directly, ideally in person or by telephone, using contact details you know to be correct.

Financial Fraud Action UK also advises employees to be suspicious of any request to make a payment outside of the company's standard process, and to ensure their own email accounts are secure by choosing "robust" passwords.

"While an urgent request from the boss might naturally prompt a swift response, it should in fact be a warning sign of a potential scam," Worobec said.

"That's why it's vital that finance teams carefully check any unusual demands for payment through an alternative method, such as over the phone or face to face, before making the payment."

I've been defrauded. What should I do?

The first thing to do if you think you have fallen for a money transfer scam is to contact your bank to see if you can stop the transfer and to make sure your accounts are secure.

You can also report the fraud to the police via Action Fraud on 0300 123 20 40.