Moonstone, an uncompromised and independent provider of services to Financial Service Providers, advises FSPs to take heed of the High Court judgment in which top law firm ENSafrica was ordered to pay R5. 5 million, plus costs at a punitive scale, to a property purchaser who was a victim of cybercrime.
The circumstances that led up to the judgment are similar to those that can occur when an FSP emails its banking details to clients so they can make investments.
This is yet another reminder to our valued clients to proceed with caution when loading or changing beneficiary bank details based on emails received from a service provider where, as in the above case, a fraudster could have intercepted this email and changed the banking details, resulting in the money being transferred into their account. While this setup is a longstanding scam, many tend to fall victim to this more often than we’d like to hear about.
To our business owner clients, please investigate using a secure platform such as Videosign to communicate with your clients. Videosign enables businesses and professionals to engage with clients remotely.
What’s more, the platform enables businesses to identify and verify their clients, as well as to sign, record and audit their transactions in a secure, legally admissible way.