NGOs and residential associations targeted by fraudsters: one victim lost nearly half a million euros
Following the exposure of a major fraud at an artists' union, it has emerged that similar cases are more widespread. Police warn that non-profit organisations and residential associations are in particular danger.
NGOs and residential associations targeted by fraudsters: one victim lost nearly half a million euros
Following the public exposure of an extensive fraud at an artists' union, it has emerged that several other individuals and organisations have fallen victim to the same scheme. In the latest known case, one company and its owner lost nearly half a million euros, which comprised both personal and business funds.
Police warn that non-profit organisations and residential associations have been placed in particular danger. In these organisations, financial transaction oversight is often weak, making them easy targets for fraudsters. If money movement is not sufficiently monitored, criminals find it easier to conceal their activities.
Frauds similar to the artists' union case typically work by criminals gaining access to an organisation's bank account or luring victims into transferring money to false accounts. Often, the trust that people feel towards familiar organisations or official structures is exploited.
Police urge all non-profit organisations and residential associations to review their financial processes and establish strict oversight of money movement. Particular attention should be paid to bank account access and transaction authorisation procedures.
Source: Uudis.net
Source: Google News EE — Crime (et)