You can strengthen your defenses against business fraud by remaining informed and training your business in detection and prevention.
All businesses, large and small, are prime targets for cybercriminals and fraudsters which is why having an updated and detailed fraud protection plan is necessary.
At First Reliance Bank, we are committed to helping our business clients stay informed and protected. Throughout this blog, we will detail the types of business fraud, prevention tips, and how to navigate a fraud incident.
Types of business fraud
There are many types of business fraud, and being educated on how they can uniquely affect your business keeps you secure.
While scammers may attempt to violate your security using different methods, the common thread amongst them is an effort to gain sensitive information about your organization. By remaining vigilant, you are protecting not only your business but your entire staff.
Below are the different types of business fraud to be cautious of:
- Business Email Compromise (BEC): Criminals spoof or hack company email accounts to trick employees into sending wire transfers or revealing sensitive data.
- Vendor and Invoice Scams: Fraudulent invoices from fake vendors can slip through if processes aren’t in place.
- Cyber Threats: Malware, ransomware, and phishing emails can target your business operations and customer data.
- Payroll and HR Fraud: Scammers impersonate employees or HR reps to redirect paychecks or access W-2s.
- Check Fraud: Stolen or altered checks can be used to withdraw funds or compromise your account.
- AI Voice Clone Impersonation: Short audio samples are used to recreate someone’s voice to commit fraud over phone calls.
As technology advances, so do the types of methods scammers attempt to retrieve information from their victims. One of the newest fraud tactics is AI voice cloning, where AI gives fraudsters the ability to impersonate a familiar person to create fake scenarios to create confusion and vulnerability, as detailed in our Better Life Blogs.
We understand that it can be overwhelming to consider the harmful ways scammers may try to steal information or financial assets from your business but, staying informed is staying protected.
Protecting your business from fraud with First Reliance Bank
As previously noted, remaining informed is one of the greatest tools your business can have against falling victim to business fraud. If you learn the telltale signs of fraud, it immediately makes it more challenging for scammers to trick you.
Not only should the leaders in your organization be informed but, every single employee should be knowledgeable about potential fraud risks. Teaching your employees what fraud red flags look like is essential as many scammers target new employees who may not be educated on fraud prevention.
Additional fraud prevention tactics include:
- Establishing strict internal controls for wire transfers and payments
- Implementing multi-form authentication and secure passwords for all business accounts
- Verifying any unexpected payments requests with a known contact via phone or in-person
- Performing regular account reconciliations to monitor for unauthorized activity
Prevention and monitoring go hand in hand when it comes to keeping your business safe. Our risk management tools proactively stop fraudulent checks and presenters, constantly screening our customers’ activity for potential scams. Learn more about our wide array of risk management tools available to our First Reliance Bank community by visiting our treasury services page.
These simple measures can save your business from the loss of security and assets. If you have any questions about fraud information or education, feel free to contact a member of the First Reliance Bank team here.
What to do if you suspect business fraud
Despite taking prevention measures, if you suspect your business may have fallen victim to fraud there are a few steps we suggest you take. Ensuring that your response to potential fraud is swift limits the reach of the scam.
Our First Reliance team is available 24/7, and alerting us as soon as possible about a fraud incident gives us the ability to act quickly in keeping your business safe. If you suspect fraud, immediately contacting your First Reliance Bank relationship manager is the first step.
After giving our team the heads up, we suggest contacting your business’s IT and legal teams so they can begin working through the incident. While we can start to address the banking side of a fraud incident, looping your teams in gives them the chance to secure your business within their realms of expertise.
Finally, your business will need to file a report with local law enforcement or the FBI’s Internet Crime Complaint Center (IC3). All of the listed steps are essential in protecting your business and ensuring the quickest resolution.
First Reliance Bank puts your business first
We understand that a business is more than an organization, it is your livelihood and it deserves to be thoroughly protected. Our team partners with you to keep your business safe through fraud education, better banking tools, and clear communication.
Keep up with our latest Better Life Blogs to stay educated on banking essentials to keep your practices most protected!
