5 Critical Fraud Focus Points to Safeguard Your Business
Fraud is increasingly common in today's rapidly evolving digital landscape and can cause irrevocable loss. Protect your assets by staying aware and being proactive. These 5 tips can help to set you up for success.
1. Conduct a Thorough Cybersecurity Risk Assessment
A cybersecurity risk assessment is the first line of defense against fraud. By identifying potential vulnerabilities in your systems, you can proactively address weaknesses before they escalate. It is important to ensure your assessment encompasses all facets of your organization's digital infrastructure, from its network security to data storage protocols.
Engaging a company that specializes in identifying these shortcomings can mitigate potential losses and identify the company’s vulnerabilities, whether that be at the employee level, weak back-up processes or physical security.
2. Regularly Review Account Signers and Online Banking Administrators
Personnel changes are an inevitable part of business operations. To prevent unauthorized access, we recommend promptly disabling access for individuals who are no longer associated with your company. Conducting regular audits of your company’s account signers, online banking users and administrators, and credit card holders is also a great way to maintain up-to-date information on who can access these platforms. This mitigates the risk of internal threats and unauthorized transactions.
3. Implement Fraud Prevention Tools
Utilize all available fraud prevention tools, such as Check Positive Pay and ACH Debit filters. Multi-Factor Authentication (tokens) and Dual Control functions cost nothing and can mitigate account takeover, business email compromise and other known scams. These tools act as gatekeepers, tracking transactions in real-time and flagging suspicious activity. You can create an additional layer of protection for your financial assets by staying one step ahead.
4. Utilize Dual-Authorization for Payment Processes
Many electronic payment processes offer dual-authorization. If you can use it, you should! Dual-authorization requires approval from a second authorized individual before a financial transaction is processed. This process adds an essential checkpoint, ensuring that electronic movement of funds (wires/ACH) are reviewed by multiple people before being finalized.
5. Verify Payment Instructions through Trusted Channels
When it comes to making changes to payment instructions, always exercise caution. Instead of relying on information found on the Internet, take the extra step to verify payment changes through known and trusted channels. Call established, recognized numbers to confirm any alterations. This will help avoid potential pitfalls associated with fraudulent instructions and safeguard your organization from elaborate schemes aimed at redirecting funds.
Safeguarding your business from fraud requires vigilance and adaptability. By conducting thorough risk assessments, keeping account access updated with personnel changes, embracing fraud prevention tools, implementing dual-authorization, and verifying payment instructions through trusted channels, you can reduce the risk of falling victim to fraud. Stay proactive and stay informed.
Looking to increase cybersecurity when managing financial data? Check out our Fraud Prevention Solutions and contact your Treasury Management Officer to discuss what measures you can take to prevent cyber fraud from happening to your organization.
