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PO’s just how important are they?

June 1, 2016 / admin / Printing, Purchase Orders

Only recently a company boss lost £20,000 to ‘CEO fraud’ and is now warning others not to follow suit.

A clever but disheartening scam that involves a series of sternly-worded emails, usually sent to a member of staff in accounts, asking for sums of money to be urgently transferred. The fraudsters use software which makes their emails seem like they come from a director of the business using HMA ‘hide my ass’ VPN software freely available on the internet. The emails then look like they were coming from Directors or CEO work email accounts.

“It’s very cleverly done, it’s very simple. What they tend to do is try this scam on a Friday. The accounts person thinks ‘I’ve got no paperwork’ but the email says ‘don’t ask questions, I’ll show you the paperwork later, just get it paid”.

If not paid quickly, the fraudsters follow up with increasingly irate emails, not giving their victims time to think.

Bank are saying it’s happening so regularly, especially this year. Someone in accounts gets this intimidating email by the CEO, they don’t want to look like they are questioning the boss. It’s very clever.

In a report released in February this year it said there had been a marked increase in CEO fraud from July 2015 until January 2016 with a total of 994 reports being made to Action Fraud

This highlights for any business of sufficient employees to ensure correct company procedures and software are in place to reduce if not nullify this kind of thing from happening.

Ensuring you have a purchase procedure in place will ensure that no one will be able to pay out without having followed protocol and for companies of significant size by having a software platform such as ‘myBrand’ software, all company wide materials, marketing literature, downloadable files and regularly purchased items can be setup, purchased online with a PO and tracked much like an ecommerce system, significantly reducing any chance of this happening to your business.

So the true value of a PO and what it means to your business may not mean anything just now, but without significant measures in place, no matter how simple or well organised, whether paper or software driven, you may only find out if you suddenly discover your business bleeding money out the bottom on scam invoices, demands for payment which are not justified, or inability to track purchases and values of orders.

For further information or to arrange a demo of our software contact our studio.

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