A supplier sends new bank details shortly before a payment is due. The message uses a familiar name, the invoice matches the purchase order, and the request reaches someone who can approve a transfer. The business needs a decision about authority, verification and payment before the money moves.
Our firm advises and represents companies on fraud-related commercial risk involving Israel. We review payment and authority provisions, negotiate safeguards, advise on suspected diversion and coordinate the legal response with banks, forensic specialists and foreign counsel where needed.
Connect fraud controls to the company’s actual exposure
Fraud prevention starts with the transactions the business makes and the people entitled to approve them. Our firm examines how a new supplier is appointed, how payment instructions change, who can release funds and what happens when a request is disputed.
GAO fraud estimates address US federal-government losses using data from fiscal years 2018 to 2022. For a company, the useful starting point is its own payment flows, approval rights and evidence of exceptions.
We help management connect the control policy to contracts and delegated authority. A workable arrangement identifies the decision-maker, the verification required and the person responsible for escalation when the instruction differs from the agreed process.
The GAO analysis also discusses fraud-data collection and uncertainty. Our firm focuses the review on records that can explain the company’s decisions, including the original instruction, verification, approval and response.
Review the route from supplier appointment to payment
A payment-control review should follow the whole chain. An invoice may be accurate while the beneficiary has changed. A genuine employee may approve a request made outside their authority. A supplier may dispute a payment made to an account that appeared in a compromised message.
Our firm reviews the contract, account-change procedure, notice requirements and approval rights together. We negotiate a clear route for confirming a change and address how the parties allocate risk if a message or account instruction is disputed.
The OneSafe treasury page concerns cross-border payment operations. We connect the proposed payment process to the company’s obligations, the bank’s requirements and the authority of the people giving instructions.
For an urgent or unusual request, the control owner needs an agreed verification channel and a route to suspend approval while the discrepancy is checked. We help define those rights and the communications needed to preserve the commercial relationship.
| Payment stage | Control question | Firm legal work |
|---|---|---|
| Supplier appointment | Verify the entity and authority | Disclosure and cooperation terms |
| Bank-detail change | Use the agreed verification channel | Valid notice and effect on payment |
| Payment approval | Record the approver and instruction | Delegated authority and responsibility |
| Refund request | Check the recipient and obligation | Entitlement and discharge of the debt |
| Suspected diversion | Escalate and preserve the record | Bank response and supported recovery steps |
Assign authority before an incident
Management should know who can suspend a proposed payment, contact the bank, instruct advisers and approve a settlement. Our firm reviews the relevant corporate authority and prepares decision and escalation arrangements suited to the business.
A change in supplier records, an approval override or an unexpected refund destination can call for different responses. We help distinguish an operational exception from a disputed legal instruction and identify when management or the board needs to decide.
The Basel Committee historical context discusses banking supervision. For corporate governance, our work addresses the company’s own authority, reporting and contractual framework.
Make the response to an alert usable
A detection tool needs a person who can act on the alert. Our firm works with the client and its technical advisers on the legal effect of a proposed hold, the records to retain and the communications required with the affected counterparty.
The customer-level fraud benchmark paper examines customer-level datasets for fraud-detection research. When a company considers a tool, we advise on the contractual commitments, data handling, permitted use and responsibilities surrounding the proposed service.
The EPC payments threats and fraud report discusses payment threats and controls. We assess which risks matter for the client’s payment arrangements and how the response should be reflected in authority and contracts.
The digital-payment technology discussion offers further operational context. Where a business uses digital assets or other payment methods, our firm examines the agreed obligation, the parties involved and the legal and evidential consequences of the chosen route.
Address impersonation and delegated instructions
An instruction may arrive through an employee, a service provider or an automated workflow. Our firm reviews the authority granted, the permitted actions and the evidence needed to show what was approved.
The Adyen fraud report discusses identity and fraud risks, including automated activity. We help clients set contractual limits for delegated instructions and procedures for questioning a request that falls outside them.
The UK Fraud Strategy 2026 to 2029 discusses the response to fraud in the UK. For a cross-border incident, our firm identifies the relevant jurisdictions and coordinates advice on the applicable duties, reporting choices and recovery route.
We also review service-provider cooperation, access to relevant records and responsibility for preserving an instruction trail. Those terms matter when the business needs to establish who initiated a transaction and what authority was available.
Negotiate safeguards that match the transaction
Our firm negotiates payment-change procedures, authority confirmations, cooperation duties and evidence access. Where appropriate, we assess milestone payments, escrow, security and remedies for a disputed instruction or suspected diversion.
The agreement should connect the verification process to the payment obligation. We address the effect of a rejected instruction, the time allowed for checking it, the route for giving a valid replacement and responsibility for resulting costs.
For agents, distributors and service providers handling money or records, we assess audit and cooperation rights alongside termination, suspension and dispute provisions. The selected forum and the location of assets are part of that review.
Respond to a suspected diverted payment
Our firm first assesses the immediate legal position: what was sent, who approved it, what the bank can be asked to do and which deadlines or obligations need attention. We coordinate the client’s communications with the bank and relevant counterparties and assess any urgent court application.
Preserving the original message, invoice, approval trail and bank record helps establish the sequence. We advise on the scope of collection and disclosure and coordinate with forensic specialists where technical analysis is needed.
A suspected fraud can also raise insurance, employment, privacy and reporting questions. We identify the issues requiring a client decision and coordinate the appropriate advice while the recovery work proceeds.
| Record | Material to preserve | Legal purpose |
|---|---|---|
| Instruction trail | Original messages and attachments | Establish the request and its source |
| Authority | Approval records and delegated powers | Identify the decision and its limits |
| Banking sequence | Payment and bank communications | Assess the proposed bank or court response |
| Counterparty position | Contract and notices | Assess the disputed obligation and remedies |
| Cross-border recovery | Relevant parties and assets | Coordinate jurisdiction and foreign advice |
Distinguish fraud response from cheque restrictions
A payment-diversion dispute and an Israeli returned-cheque restriction involve different legal questions. Our firm examines the bank’s decision and the applicable route before seeking a correction or court relief.
The Bank of Israel guide on restricted accounts addresses the returned-cheque framework. An ordinary restriction involves ten or more qualifying refused cheques over twelve months, with at least fifteen days between the first and last refusal. The ordinary restriction period is one year.
The Bank of Israel consumer information provides further guidance. Our firm reviews the count, notices, available grounds and deadline for the particular restriction, alongside any separate fraud dispute.
Plan the legal route and test the response
Our firm assesses the claim, evidence, relevant parties and available relief. In a cross-border matter, we examine jurisdiction and assets and coordinate foreign advice needed for a supported recovery step.
The linked overview of commercial litigation in Israel provides general reading. We identify the court and procedure applicable to the client’s actual claim and the proposed remedy.
For prevention work, we help the client test a payment-change or suspected-diversion scenario against its contracts and authority. The review should leave management with clear verification duties, escalation rights and decisions about gaps that need fixing.
Get advice on prevention or an active payment dispute
RNC Group can review payment and authority provisions, negotiate safeguards and represent the client in a fraud-related banking or commercial dispute involving Israel.
Use the contact page or the WhatsApp and email options below to discuss a disputed instruction, suspected diverted payment or proposed change to your company’s contractual controls.
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This article is for general information only and does not constitute legal advice. Laws and their application depend on the facts and jurisdiction and may change. Although we aim to keep this information accurate and current, we do not guarantee that it is complete or up to date. The article may contain omissions or errors. Reading this article does not create an attorney-client relationship with RNC Group. Before making a decision or taking action, seek advice from a qualified lawyer in the relevant jurisdiction.