Is your business ready to fight fraud?
Nearly half of the world’s organizations have been victims of fraudulent activity during the past two years. Here are some tips for preventing security breaches from hitting your business.
Technology is a double-edged sword for today’s businesses. While advancements can boost efficiency and increase the speed of doing business, they may also mean risks. And as technology becomes more advanced, aspiring fraudsters do too. “In this environment, where we’re seeing speed-to-payments, it’s crucial to ensure that the business has a solid focus on internal security procedures and controls,” says Mike Kelley, FVP, business information security officer at Truist.
Nearly half (47%) of surveyed global organizations reported they experienced fraud over the past two years—the second-highest rate since 2000.1 With COVID-19 increasing the instances of business email compromise and other scam attempts, cyber fraud risk is expected to continue to rise.2
Not only can security breaches have a financial impact, they also affect employee morale and brand perception.1 In this new era of increased remote work and more determined threat actors, it’s important for you and other leaders to be doing what you can to prevent cyber attacks. Start with these simple best practices:
A tale of two business leaders
Roger lets his office manager, who’s been at the organization for several years, oversee vendor relationships. A new vendor comes recommended by this office manager. However, the vendor also works with the office manager to pad invoices with additional shipping fees and slightly higher prices than originally negotiated. In exchange for looking the other way, the office manager splits the profit. The fraud continues for months because no one else is monitoring the transactions.
Patricia routinely vets all new vendors by verifying their assigned tax ID, phone numbers, and confirming business ownership through registration databases. She also cross-references her findings with her employees’ information to ensure there isn’t an undisclosed conflict of interest. Finally, Patricia’s organization has established segregation of duties—those who authorize orders do not also process payments. That way, at least two employees are always involved in each transaction.