Combating Fraud: Awareness, Prevention and Best Practices
Fraudsters and cybercriminals are becoming increasingly sophisticated, using advanced tactics and technologies to exploit vulnerabilities. To protect yourself and your organization, be aware and stay informed about the threats you face.
What Does Fraud Look Like?
It is important to keep abreast of the latest cybersecurity trends and best practices. Understanding what fraud looks like may help you and your organization recognize threats.
Fraud comes in many forms – so it’s important to stay alert. Fraudsters might impersonate a company, bank’s fraud department, supplier or even a senior executive within the company using alarmist language and urgent deadlines.
Look out for red flags such as unsolicited calls from unknown contacts, new or unusual numbers, instructions to update payment details or requests to share account credentials. Fraudsters may reject attempts to verify information by claiming known contacts are unreachable. Tell-tale signs in written communications can include poor grammar, spelling mistakes, and minor changes in email addresses or domain names.
Pressure is a common tactic: Unexpected requests sent near the end of the workday or right before the weekend are meant to force a rushed decision.
Stay Safe
Technology plays an important role in defending your business against cybersecurity threats. Using up-to-date anti-virus and anti-malware software and certified professional to install only verified applications can help. Enable pop-up blockers, bookmark trusted links, log-out of applications once you are finished and close browsers after using your online banking or viewing or executing financial transactions. Enable multifactor authentication whenever possible and ensure all company devices are password-protected to further enhance security.
Prevention requires a coordinated, organization-wide effort. Companies should adopt available fraud prevention solutions as a safeguard. Regularly train employees on how to recognize fraud and stay informed about evolving tactics. Warn against clicking unknown links or approving unfamiliar or unexpected transactions.
Remind employees to reject unsolicited calls and ignore unsolicited SMS messages. Independently verify messages with a trusted known contact before acting on any requests.
Risks and Controls
Strengthening internal controls can significantly reduce risk to your company. Verify all new payment instructions directly with trusted contacts before processing transactions.
Enable dual approval for high-risk activities and opt-in to timely account notifications. Segregate duties for critical functions to minimize vulnerabilities.
Regularly monitor and reconcile accounts, create a structured maker/checker process for sensitive procedures to further mitigate risk.
Change password frequently and enable biometrics on mobile devices where applicable.
It is important to keep abreast of the latest cybersecurity trends and best practices. Understanding what fraud looks like may help you and your organization recognize threats.