Recruiters are being warned to ensure they check all information provided by potential clients after a recent fraudulent scam in the Midlands which has cost several companies thousands of pounds.

A potential client contacts employment businesses saying he is looking for labour in the engineering and technical sector for a job he has won locally. He says he knows several labourers he has used before and asks the recruiter if he wants to payroll them.

The client purports to be from a legitimate company operating in the sector and provides company registration and address, but a false telephone number.

Timesheets are then submitted, along with fake bank account details.

One recruiter, who was approached by the scammer, warned: “If you are asked to payroll for a company that you do not have a long-term relationship with, check all the details extremely carefully. All the details provided to me gave me no reason to question the business. But, it seemed like too good an opportunity – and if it seems too good to be true it usually is.”