The International Transport Intermediaries Club (ITIC) has warned P&I correspondents to tighten payment verification procedures after a fraudster intercepted email communications during a crew claim and diverted a $200,000 settlement.

In a case highlighted in ITIC’s latest Claims Review, a correspondent handling a sensitive settlement involving the family of a deceased seafarer became the target of a sophisticated payment-interception scam. A third party gained access to email correspondence and impersonated several individuals involved in the claim, including members of the family.

Mark Brattman, claims director at ITIC, said the incident underlined how advanced such fraud has become. “This case is a stark reminder of how sophisticated payment-interception fraud has become. Email interception is a well-known method of fraud, and it often targets high-value payments, particularly where the correspondence is sensitive or time-pressured,” he said.

“In this case, the fraudster took advantage of a complex and emotional situation and relied on the apparent credibility of the forged documentation,” Brattman added.

Using fake email addresses and fabricated settlement authorities, the fraudster supplied false bank details, leading the correspondent to transfer the $200,000 to a fraudulent account. The deception only came to light when the deceased’s family later queried why the funds had not been received. By then, the money had been withdrawn and could not be recovered.

“The quality of fraudulent emails is constantly improving, and it is becoming almost impossible to tell if it is fraudulent just from reading it,” Brattman said. “Any changes to bank details should be seen as a huge red flag.”

The P&I club was notified immediately, and legal counsel was appointed to verify the claimant’s identity and complete the settlement correctly. The member paid the settlement a second time from its own funds and also covered additional legal costs. ITIC reimbursed the correspondent for those legal expenses.

Brattman urged correspondents to verify identities and payment instructions through secure, multi-channel communication, warning that bank details should always be checked using independently sourced contact information rather than details provided by email.