It was suspicious.
During our routine, daily review of a client’s banking transactions, we noticed an unexpected direct debit – one that we didn’t recognise and had not authorised.
After confirming that the client hadn’t authorised this direct debit, either, we immediately contacted the bank. The standard advice? Report it through a general fraud hotline—an unsatisfactory response when time and money are at risk.
Thankfully, due to our longstanding relationship with a senior bank manager, we could act faster. The manager authorised a direct debit indemnity claim, and the funds were back in our client’s account the very next day.
What can your business take away from this experience?
First, to reiterate my point from the last few weeks, having a good relationship with a bank manager can be invaluable.
Choose a bank that values relationships (yes, they still exist) and maintain that connection, as we do for our clients — they can be your best ally in a faceless system.
Second, direct debit fraud is more common than you might expect, because it is so easy to carry out.
Your bank details are on every invoice you sent out, meaning that numerous people could access them.
With just this information, setting up a direct debit is alarmingly easy, even without your permission. There are no security checks when a direct debit is established. Unless a direct debit is challenged, it will be paid out.
This is why frequent monitoring of your bank transactions is so critical. Mistakes happen the entire time – and increasingly, so does crime. Reviewing transactions regularly can make all the difference in catching issues early.
At Insight Associates, we conduct these checks daily for our clients as part of a comprehensive approach to managing cashflow and protecting assets.
Many companies review transactions once a month or even less often, which can lead to costly oversights. But when your business reaches a certain size, attention to financial detail becomes crucial for smooth growth and peace of mind.
If your business is generating over £1 million in revenue, you’re likely ready for a higher level of financial oversight.
Our outsourced financial management service brings you the kind of diligent, daily monitoring typically found in much larger companies. We also deliver timely, reliable reports, guide you in interpreting them, and collaborate with you to budget, plan ahead, and maximise profitability.
When you work with us, you gain an in-house level of attention and care. We’ll work alongside you to manage your finances to world-class standards, ensuring that you have the insights and control you need to grow confidently.
Let’s talk about how we can help your business thrive. Please email garry@insightassociates.co.uk or call our office on 01279 647 447 to arrange a no-obligation consultation.
Warmly,
Garry
