Funds funnelled away by fraudster

A yacht broker had successfully arranged a charter and received bank details from the owner for the payment of hire. Everything appeared to be in order, until the owner suddenly claimed to be travelling and requested that the funds be sent to a different bank account in another country.

Unaware that this was part of a fraud, the broker transferred €90,000 of the charter hire they had received from the charterer to the new account. Shortly after, an email arrived, sent from the same address that had provided both the correct and fraudulent bank details, warning that the account had been hacked and advising not to proceed with any payments. However by then, the funds had already been sent.

The broker immediately contacted the bank, which began efforts to block the transaction. Meanwhile, to ensure the charter could still go ahead and protect their principal’s interests, the broker gave up €40,000 in commission and paid €10,000 from their own funds to keep the deal alive.

ITIC responded quickly, offering a practical and supportive solution. ITIC agreed to front the remaining charter deposit while the situation was investigated, ensuring the principal could proceed with the charter without delay.

Fortunately, over the weekend, the bank successfully blocked the fraudulent payment, and all the funds were returned to the yacht broker, which is a rare occurrence.

It is important to verify bank details through secure channels, especially when changes are requested unexpectedly. Email fraud continues to pose a serious risk in high-value transactions. ITIC encourages members to implement strict verification protocols and to reach out for support at the first sign of irregularity. You can find more fraud prevention advice on the ITIC website.