Telegraphic Transfer Fraud

Guideline No. 9.3.1

Telegraphic Transfer Frauds

It has been drawn to our attention that there have been several cases in recent weeks of authorised institutions in Hong Kong suffering suspected telegraphic transfer frauds.

The way in which the fraud is perpetrated is by the submission at a branch counter of a fraudulent telegraphic transfer instruction drawn on corporate customers account and bearing a forged signature.

The cases appear to be well organised in as much as the signatures are very good copies, the amount is big enough to be worth the effort, but not big enough to draw a lot of attention. Furthermore, the accounts have balances or overdraft facilities to enable the transfer to go through. The money is immediately withdrawn as soon as it is received at the receiving bank (N.B. all the transfers have been to personal names in Hong Kong or Macau).

We understand that the police are currently carrying out investigations.

If you are not already aware of this, you might wish to alert your members to be vigilant against this type of fraud.

I would appreciate if you could also provide us with any feedback on whether this is a widespread problem affecting many of your members.

I am also writing in similar terms to the Chairman of The DTC Association.