Who Checks a Supplier’s New Bank Details?
Paying suppliers is a routine part of running a business. Whether it is for office supplies, professional services, equipment or other operating expenses, businesses rely on accurate payment information to ensure money reaches the right recipient.
But what happens when a supplier suddenly sends an email requesting payment to a different bank account?
The request may be genuine. The supplier could have changed banks or opened a new business account.
However, it could also be a fraudulent request designed to redirect your payment.
For growing businesses, especially those managing multiple suppliers and frequent transactions, checking changes to bank details should be a standard financial control, not an optional step.
Here is why supplier bank detail verification matters and how businesses can establish a safer payment process.
1. Why Changes to Supplier Bank Details Matter
Most businesses store supplier information in their accounting or payment systems.
This may include the supplier's registered name, contact details, bank account number, payment terms and transaction history.
Once these details are saved, employees may use them repeatedly when processing payments.
The risk arises when someone requests a change to those details.
For example, an accounts employee receives an email stating:
We have updated our company bank account. Please use the new account details for all future payments.
If the employee immediately updates the system, future payments may be sent to the new account without further checks.
If the request is fraudulent, the business could lose money before discovering the problem.
That is why a change to supplier bank details should be treated differently from an ordinary invoice or routine payment.
2. How Supplier Payment Fraud Can Happen
One common risk is known as business email compromise (BEC) or invoice redirection fraud.
This happens when a fraudster impersonates a legitimate supplier or gains access to a genuine business email account.
The fraudster then requests that payment be made to a different bank account.
The message may appear convincing because it includes familiar company information, invoice references or an existing email conversation.
A typical situation might look like this:
A business receives an invoice from a regular supplier.
Shortly before payment, an email arrives requesting updated bank details.
The employee changes the account information.
The payment is transferred to the new account.
The genuine supplier later contacts the business because payment has not been received.
By then, recovering the money may be difficult.
Importantly, a fraudulent request does not always contain obvious spelling mistakes or suspicious formatting.
Some messages may look almost identical to genuine supplier communications.
3. Do Not Rely on Email Confirmation Alone
One of the biggest mistakes businesses can make is assuming that an email is genuine simply because it appears to come from a familiar address.
Email accounts can be compromised, and sender information can sometimes be manipulated.
Even if a request appears in an existing email conversation, it should not automatically be trusted.
A safer approach is to verify the change through a separate communication channel.
For example, if a supplier emails new bank details, contact the supplier using a telephone number already recorded in your company's approved supplier records.
Do not rely solely on the phone number provided in the email requesting the change.
The purpose is to confirm the information through a contact method that has not been introduced by the potentially fraudulent request.
4. Establish a Clear Verification Process
Every business that pays suppliers should have a simple process for handling changes to payment information.
The process does not need to be complicated, but it should be consistent.
Step 1: Receive the request
When a supplier requests a bank account change, record the request and identify which supplier and payments are affected.
Do not immediately replace the existing details.
Step 2: Verify the supplier's identity
Contact an authorised representative using a previously verified phone number or another independently established communication channel.
Confirm that the supplier has genuinely requested the change.
Step 3: Check the supporting information
Request appropriate supporting documents, such as an official bank confirmation or other reliable evidence of account ownership.
Where available, confirm that the beneficiary name matches the supplier's legal or approved trading name.
Supporting documents should be checked for consistency, but they should not replace independent verification.
Step 4: Obtain internal approval
Have a designated employee or manager review the verification evidence before the new details are approved.
Step 5: Update the supplier record
Only after verification and approval should the authorised employee update the accounting or payment system.
Step 6: Keep a record
Document who requested the change, how it was verified, who approved it and when the system was updated.
This creates a clearer record if questions arise later.
5. Who Should Be Responsible for Checking?
In smaller businesses, one employee may handle invoices, supplier records and payments.
While this may be practical, it can create risks if the same person can change bank details and approve payments without independent review.
Where possible, businesses should separate these responsibilities.
Responsibility | Suggested Person |
Receive the bank detail change request | Accounts or administrative employee |
Independently verify the request | Accounts or procurement employee |
Approve the change | Finance manager or authorised director |
Update the supplier record | Authorised accounts employee |
Approve the payment | Designated payment approver |
For very small businesses, having different employees for every step may not be realistic.
In that situation, the owner or another authorised person can independently review and approve the change before payment.
The important point is that no bank account change should go through without proper verification and approval.
6. Warning Signs Businesses Should Not Ignore
Not every bank account change is suspicious. However, certain situations deserve additional attention.
Unexpected changes
A regular supplier suddenly requests payment to a new account without prior notice.
Urgent payment instructions
The sender insists that the payment must be completed immediately and discourages further checks.
Different email addresses
The sender's email address looks similar to the supplier's usual address but contains a different letter or domain.
Changes just before payment
New bank details arrive shortly before an invoice is due.
Unusual account information
The new account is in a different name or country without a clear explanation.
These warning signs are consistent with guidance from the Singapore Police Force and banking institutions on business email compromise scams.
When something seems unusual, stop the payment process until the details have been independently verified.
7. Why a Second Approval Can Make a Difference
Many businesses already require approval before making large payments.
However, they may not require approval when someone changes the bank account details stored in their accounting system.
This creates a potential weakness.
For example, a payment of RM20,000 may have already been approved for a genuine supplier.
If the supplier's bank details are changed afterwards, the approved payment could be redirected without anyone reviewing the new account.
A better approach is to treat bank account changes and payment approvals as two separate controls.
The business should verify and approve the new bank details before using them, even when the invoice itself has already been approved.
For higher-risk changes, businesses can also require an additional review before releasing the first payment to the new account.
8. Use Accounting Systems to Support Payment Controls
Accounting software can help businesses maintain supplier records, but the system should be configured to support proper internal controls.
Depending on the software, useful features may include:
Restricting who can edit supplier bank details
Maintaining a history of changes
Requiring approval for supplier information updates
Recording supporting documents
Separating payment preparation from payment authorisation
Generating reports of recently modified supplier records
However, software alone cannot determine whether a supplier's new bank account is genuine.
Even if the system records every change, someone still needs to verify the information before approving it.
Technology should make the process easier to manage, not replace necessary checks.
9. What If a Payment Has Already Been Sent to the Wrong Account?
If a business suspects that money has been transferred to a fraudulent account, acting quickly is important.
First, contact your bank immediately.
Provide the transaction details and explain that the transfer may have been fraudulent. Ask whether the bank can attempt to recall or stop the funds.
Second, inform the relevant authorities.
Report the suspected fraud through the appropriate police or scam-reporting channels.
Third, preserve the evidence.
Keep the emails, invoices, payment confirmations, account details and communication records related to the incident.
Fourth, secure your business systems.
If an email account may have been compromised, review account access, change affected credentials and check for suspicious forwarding rules or unauthorised activity.
The FBI also recommends contacting the financial institution immediately when a business email compromise payment is discovered.
Businesses in Malaysia can also refer to the Royal Malaysia Police's Semak Mule service when checking potentially suspicious bank accounts, although a result showing no reported concerns does not guarantee that an account is safe.
10. Make Verification Part of Your Standard Payment Process
A good payment process should not depend on whether an individual employee remembers to be careful.
Instead, the company should have a clear procedure that applies every time a supplier requests new bank details.
A simple checklist can include:
Supplier Bank Detail Change Checklist
Request received and recorded
Supplier contacted using previously verified details
New account information independently confirmed
Supporting information reviewed
Change approved by an authorised person
Supplier record updated
Verification and approval evidence retained
Businesses can include this checklist in their finance procedures and train employees to follow it consistently.
For larger organisations, the same process can be built into the supplier management or accounting system.
Why This Matters as Your Business Grows
When a company has only a few suppliers, the owner may personally recognise every payment.
As the business expands, this becomes harder.
There may be more suppliers, more invoices, multiple employees handling payments and less direct involvement from management.
Without clear procedures, important changes can be overlooked.
Establishing proper supplier verification controls helps businesses reduce the risk of payment errors, strengthen accountability and maintain more reliable financial records.
It also gives employees a clear process to follow when they receive unusual payment instructions.
A Simple Check Can Prevent a Costly Mistake
Changing a supplier's bank details may take only a few minutes.
But if the information is incorrect or fraudulent, the financial consequences can be significant.
Businesses should not rely on email instructions alone, even when the message appears to come from a familiar supplier.
Verify the request independently, obtain the necessary approval and keep a record before making payment.
The question should not be whether someone checked the invoice.
It should also be: Who checked where the money is going?
How Prime Konnection Can Help
Prime Konnection supports businesses in Singapore and Malaysia with accounting and bookkeeping, company incorporation, company secretarial services, HR outsourcing and business advisory.
Maintaining organised supplier records, accurate accounting information and clear financial procedures can help businesses manage their daily operations more effectively.
For growing SMEs, reviewing how financial information is recorded, checked and approved is an important part of improving business administration.
Contact Prime Konnection to learn more about our accounting, bookkeeping and business support services.
Prime Konnection is a trusted consultancy specialising in business, immigration, HR, accounting, and education services across Singapore and Malaysia. We support individuals, entrepreneurs, and organisations by providing clear, reliable, and practical solutions that simplify complex processes and help them navigate regional requirements with confidence.
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