April 4, 2019

ALL ACADEMICS AND STAFF AT UC SAN DIEGO (including UC San Diego Health System)

SUBJECT:    Purchase Order and Supplier Payment Fraud

Institutions of higher education continue to be the target of complex
fraud schemes. Over the past several years, UC San Diego has been the
target of purchase order fraud, credit card fraud, and supplier impostor

Supplier impostor fraud occurs when a perpetrator acts as a
representative of a legitimate UC San Diego supplier and requests to
change payment information generally related to direct deposits (ACH) or
wire payments. Following multiple and sophisticated fraud attempts,
financial institutions have provided UC San Diego guidance about the
risks associated with direct deposit (ACH). As a result, Integrated
Procure-to-Pay Solutions is aggressively transitioning existing
Marketplace payees to more secure payment methods commonly utilized
throughout higher education. UC San Diego will no longer offer
internally managed direct deposit (ACH) for new Marketplace payees, and
will instead offer direct deposit (ACH) through a third-party provider.

The more secure, preferred methods mitigate payment risk assumed by the
university and require partnership with third-party providers that may
charge a fee, although not more than standard credit card fees.
Accelerated payment terms are offered to Marketplace payees who
participate and payment terms are being lengthened for those who do not.
Please note that exceptions are made for certified small businesses,
non-profit organizations, government agencies, and educational

UC San Diego's payment method strategy reflects a system-wide effort to
increase the degree of automation and efficiency for invoice payments
while protecting the campus from fraudulent attempts. More information
about supplier fraud and scams can be found on Blink

Pierre Ouillet
Vice Chancellor and
Chief Financial Officer

Ted Johnson
Associate Controller,
Chief Procurement Officer
Integrated Procure-to-Pay Solutions