Skip to content

New Phishing Scam Targeting Contractors and Their Clients

The construction is not immune to being ripped-off and there’s a new phishing scam targeting contractors and their clients that the industry needs to be alerted to. The fraud that is being used for the contractors is similar to the one used on the clients, however taking a proactive approach will keep everyone protected from these sham artists.

The latest scam to hit the industry has your customer receiving an email or a letter in the mail that has your company’s logo on it and looking very professional including your company’s name, address and phone number. It requests future payments be made to a different payment account.

While you, the construction company, don’t realize this is going on, you contact your client about non-payment. They swear they have made the payment and when they offer proof, it is painfully too late to recover any of their funds. The account that they have sent the payment to has been closed.

In order to save your company from the possibility of massive losses this way, an addendum to the clients contract must be established. Any new clients should also have it included in their contracts. Any strange mail or emails should be forwarded to your company in order for it to be investigated and brought to the police if necessary. Err on the side of caution. Let all of your clients know that no changes will ever be done through email and have a clear cut way to assure them their payments will be safe.

As a contractor you are susceptible to the same type of scam. If you ever receive any type of contact from a subcontractor requesting a change in payment location or account, make sure to call them immediately. Validate all requests before changing and details in payments. Alert all accounting and office personnel of this scam.

The rip-off racket is increasing as everything is automated and performed on the internet, and the construction company is being greatly affected by it. Taking a proactive approach is the only way to protect your company and your valued clients.

Sign up for our Newsletter

Get the latest training and software information, along with tips and tricks, sent straight to your inbox.