Updating Beneficiaries is Important

Posted Under: News

Avoid Fraud & Bounced Payments

As your expert partner in global payments and risk management, GreenShootsFX strives to always get your money where you need it on time and equally as important, safely.

One of the most effective ways to ensure that your funds arrive at the appropriate beneficiary, in a timely fashion, is to always ensure that the correct beneficiary information is provided for each transmission. Attempts to defraud organizations are on the rise across markets and industries. Fraudsters are thinking of more creative and sophisticated ways of redirecting payments. That is why maintaining updated beneficiary contact information and bank account numbers are imperative to securing your funds. We recommend that you contact your beneficiary and/or verify beneficiary information regularly in case anything has changed.

Security and Efficiency

It’s important for you, as a customer, to have this updated beneficiary information on file but also important to relay this information to GreenShootsFX. Outdated information or unverified changes to account information can lead to fraud, bounced payments, and other loss that ultimately is a detriment to you and your business. While GreenShootsFX works diligently to monitor this information, it is a team effort between you and GreenShootsFX to prevent any beneficiary related issues with payments.

Ultimately, the beneficiary information you provide to GreenShootsFX will give us the ability to provide a more thorough information distribution system in which you and your beneficiaries will receive direct confirmation that a transaction is in process and on the way. With such a system, there will be another layer of protection for your funds that will ensure no delays or fraudulent transfers. If both you and the beneficiary receive a confirmation then not only do you know your funds are on the way, but you will also foster a better line of communication. This will strengthen the relationship between you and your beneficiary and allow for many years of strong business relationships.

Risks and Best Practices

Fraudsters try to exploit weaknesses in legitimate beneficiary change requests, including forging company letterhead to submit requests and/or posing as a new account manager. Learning to recognize the red flags and establishing strong internal protocols will go a long way in protecting your funds and your business.

Red Flags:

  • Established beneficiary contact unable to verify changes by phone.
  • Slight variations in email addresses or domain names.
  • Immediate or urgent requests to payment details.

Best Practices:

  • Call to confirm all change requests with established beneficiary contact.
  • Make staff aware of fraud risks and establish an internal protocol for suspected fraud.
  • Train staff to detect unusual payment requests.
  • Regularly review and verify beneficiary information.
  • Send small test transactions to new accounts and confirm receipt with the legitimate beneficiary.
  • Establish an internal protocol for changing or adding beneficiaries.