How to Detect, Deal with & Prevent Fake Bank Alerts for Your Business

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As a business owner, you have to deal with payments every single time you get an order or make a sale, from whatever channel. And because Nigeria runs a somewhat cashless economy, and most businesses are online, it means you have to deal with a lot of bank transfers. But with this new way of payment comes a slight comma - the rising issue of fake bank alerts.

These cleverly crafted scams aim to deceive and defraud unsuspecting business owners and sadly, are usually more successful than not. In an interview with Dresses by Lami, a fashion brand in Nigeria, the CEO told us about how the business lost a significant amount of money during a sale because of fake bank alerts, and also how she eventually figured out a solution.

To prevent more victims of this new wave of fraud, we’re going to dissect how to detect and deal with fake bank alerts for your business and keep your finances secure in this article!

The Basics - What Are Bank Alerts and How Do They Work?

Bank alerts are notifications sent by banks to an account holder, providing real-time updates on their financial activities. This enables you to monitor your account efficiently and helps detect fraudulent or unauthorised transactions almost immediately.

There are different types of bank alerts, including SMS alerts, email notifications, and app notifications, each offering businesses multiple channels to receive timely updates. Whether it's a large transaction or an account balance update, these alerts help you stay on top of your finances, ensuring peace of mind and swift action when necessary.

Now, what are fake bank alerts?

Fake bank alerts or "audio money," are deceptive tactics used to make a money transfer appear genuine when, in reality, it is not. They commonly occur between businesses and ‘customers’ in a situation where the customer has to make payment by transfer. The seller then receives a notification indicating that their account has been credited when it has not. The seller sends out the products to the customer, only to later find out that the money is not reflected in their bank account.

Related: 10 Ways to Manage your Finances as a Business Owner

How to Detect or Recognise Fake Bank Alerts

Fake bank alerts can cause serious damage to your business, and sometimes you may not know what one looks like, so it is important to take note of the following to help you detect one.

1. Unusual sense of urgency from the sender: When a ‘customer’ is pressuring you to dispatch their items without wanting you to confirm payment first or think too much about it, you may be dealing with a fake bank alert.

2. Grammatical errors: A real bank alert will never contain errors in spelling. A fake bank alert may.

3. Inconsistencies in the sender’s details: The sender’s details must match the bank alert information. In cases where they claim to have used another account to send the payment, they must provide the full information needed to verify. Otherwise, it may be fake.

4. Suspicious links: Bank alerts should never contain any links and more importantly, you must never click on any link without verifying from your bank first.

5. Money doesn’t reflect in your account: Sometimes it may take a while before money reflects in your account and scammers know this and try to take advantage of it. But more often than not, bank transfers are almost instant so if it takes a while and the money isn't still there in your account, you should be wary. You may be dealing with a fake transfer.

6. It does not contain your available balance: Every debit and credit alert typically contains your new available balance. You should look out for this as a sign of a real or fake bank alert as well.

Related: Bookkeeping & Accounting 101: How Does it Work for Small Businesses?

How to Deal with a Fake Bank Alert Scam

If you suspect that you have fallen victim to a fake bank alert, stay calm, gather all the necessary information, and contact your bank immediately. Changing passwords and strengthening security measures, reporting the incident to authorities, and reviewing other financial accounts are also important steps to take.

How to Prevent Getting Scammed by Fake Alerts

As we Nigerians say, prevention is better than cure. Fake bank alerts can cause your business to run up to hundreds of thousands of naira in loss, so it is important to know how to spot one and prevent yourself from being a victim. Here are some necessary, easy steps to take.

1. Ask for payment receipts: The first thing you must do is to ask for payment receipts from the customer. Every transaction made generates a receipt, and you can ask them to share a screenshot or the PDF of the receipt with you.

2. Verify the sender’s information: Next, you must verify that the sender’s information matches the receipt they share with you. Sometimes the customer may share details that don’t match their name (maybe they asked someone else to pay for them) so collect the payment information and make sure it matches the receipt you have gotten. Remember to double-check and confirm before taking any action.

3. Wait until you get a confirmation from your bank: Set up your bank notifications to ensure you get alerts when a payment comes in. You can also log in to your bank app to confirm payment. Ensure that the payment that comes in matches the details shared with you. Do not be in a hurry to dispatch any products without confirming payment first!

4. Wait till you actually see the money in your account: There’s no such thing as too much patience when dealing with money for your business. If it’s taking too long to verify, you can explain to the customer why the process is necessary. Make sure to carry them along nicely and politely so that in case it’s not a fake alert, they don’t also start to panic and think you want to scam them.

5. Educate your employees: Make sure that your employees also know what a fake bank alert could look like.

Related: The Best Money Hacks for Small Businesses in 2024

Managing your Business Finances with Bumpa

With Bumpa, you can manage your business finances in easier ways and avoid situations like fake bank alerts and all the trouble they come with. Here are some ways you can use Bumpa for safer transactions for your business.

1. Use your Bumpa website for orders and payments: Besides being able to add your account for direct payments, your customers can also checkout via the Paystack checkout option, which guarantees safety and reduces the chances of getting scammed.

2. Set up Bumpa Terminal for your store: The Bumpa terminal makes payment confirmation easier for you and your staff. Instead of waiting for you to confirm payment every single time, you and your staff get payment confirmation on WhatsApp. This also eliminates the need for delay in processing orders and the cost incurred from SMS bank notifications.

And it doesn’t end there! You can do so much more for your business with the Bumpa app, whether you’re just starting or you’re already a full-scale venture. Download the app now to get started.

Related: Discover 10 Things Bumpa App Can Do for Your Business in 1 Minute!

Conclusion

Detecting and dealing with fake bank alerts is important for all businesses because falling victim to a scam like that can be very detrimental to the financial health of the business. As a business owner, you need to prioritise vigilance and educate your employees about potential scams. Make sure to implement robust security practices like regularly monitoring accounts, enabling two-factor authentication and promptly reporting suspicious activity. These help you fortify your business against fraudulent schemes and ensure the safety of your hard-earned resources.

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