The latest judgment on Business Email Compromise (BEC) was handed down on 6 November 2024.

The matter related to a claim for payment arising from the sale and delivery of goods.  The debtor became the victim of BEC and subsequently paid the invoice amount into the incorrect bank account.

The debtor, in defence to the claim for payment from creditor, appeared to contend that the creditor should be estopped from claiming payment of the purchase price as the debtor relied, to its detriment, on a representation from the creditor that payment ought to be made to a different bank account.

The court referred, with approval, to the decision of Mosselbaai Boere Dienste (Pty) Ltd v OKB Motors CC 2024 JDR 1348 (FB), a full bench decision of the Free State Division, Bloemfontein.  It confirmed the general principle in our law that it remains the debtor’s obligation to ensure that payment is duly effected to the creditor and that until such time, the debtor carries the risk of loss to the extent that payment may be misappropriated.  To the extent, therefore, that payment is made to the incorrect bank account, that payment does not extinguish the debtor’s obligation and liability to pay the debt. According to the judgement, verification that payment will be properly effected does not necessarily require a great deal of effort and a simple telephone call may suffice. On the particular facts of the matter, the court also criticised the conduct of the debtor stating that it was known to persons in business making use of computer-based methods of communication and payment that cybercrime is rampant and that care must be taken to limit it’s impact.  

It held that the debtor failed to take the requisite steps to ensure that its payment was effected properly and remained liable to the creditor.