Direct Debit Fraud

[Trainee_Tax_Guru]

Hi,
I am helping out a charity with some paperwork. I have come across some unusual direct debit payments in their bank statements. We have established that these payments have nothing to do with the charity or no one from the charity has any involvement in this. The charity publishes its bank account details so people can donate directly. Maybe someone got hold of these details and using it but it would have a significant effect on the charity's income if they do not publish the bank details on their publications. We have already contacted the bank and the companies that are taking the money to rectify this and awaiting for responses. Its a bit funny as well cause some of the companies taking money from their account are porn channels :)

The management are very concern about how to prevent this kind of events in the future. Any advice would be highly appreciated. Thanks.

[Robs]

I would recommend that they accept donations via online through there website by paying credit cards/debit cards with a merchant account. another option is download a standing order form or direct debit for the donor to send back to the charity.Then the charity puts its bank details on the form and send it to the bank.
if that's not possible then only thing is to restrict the bank details and give them out on request.

Rob

[nickjonesuk]

I would advise they set up a 'deposit' account with their bank, that way, if someone tried to set up a direct debit using their account number and sort code, their bank would simply say NO because the deposit account does not have a direct debit facility - but check this with the bank.

[Mattonella Tile Studio]

I would advise they set up a 'deposit' account with their bank, that way, if someone tried to set up a direct debit using their account number and sort code, their bank would simply say NO because the deposit account does not have a direct debit facility - but check this with the bank.

That's a great idea. Sometimes the simple ones are so obvious but that never occurred to me :redface:

[Trainee_Tax_Guru]

I would advise they set up a 'deposit' account with their bank, that way, if someone tried to set up a direct debit using their account number and sort code, their bank would simply say NO because the deposit account does not have a direct debit facility - but check this with the bank.


That's exactly what I advised to them. Thanks.

[cycloneuk]

When a DD is setup on my account, my bank contact me by letter to confirm, think that is due to previous fraud on my account.