From Risk to Resilience: Building a Fraud-Proof Business

The Stats Speak for Themselves: Fraud Is Everyone’s Problem

The below graph shows the trajectory of consumer fraud reports from 2001 to 2024.

Not the prettiest picture, is it? The pandemic was a catalyst for a huge increase of fraud. Almost every year since 2001 has seen a steady increase in consumer fraud reports. And this will likely keep increasing. This data comes from the Federal Trade Commission (FTC)’s 2024 data book detailing fraud reports for the 2024 year. (Read the entire report here: https://www.ftc.gov/reports/consumer-sentinel-network-data-book-2024)

Your customers have enough to worry about. Don’t lose their trust by allowing your business to fall prey to a scam and potentially risk leaking their confidential information. Smart business owners and individuals recognize that prevention is always better than cure—and the consequences of a fraudulent attack (for both businesses and customers) are far too costly a risk.

What Are The Top Risks For Business Owners?

Business Email Compromise (BEC) and Corporate Account Takeover (CATO) are some of the most dangerous—and effective—ways scammers steal money from companies.

Business Email Compromise (BEC)

Criminals establish a relationship with an employee by crafting convincing emails – ultimately deceiving employees into believing they are a business partner or even a fellow employee. They then will (typically) target high-level employees who have the authority to transfer funds in order to make away with huge sums.

Corporate Account Takeover (CATO)

Criminals obtain electronic access to your bank account by stealing the confidential security credentials of your employees and conducting unauthorized transactions. Losses from this form of cyber-crime range from the tens of thousands to millions of dollars with the majority of these thefts not fully recovered.

Don’t Let This Happen to You: Real Fraud Examples

The impacts of Business Email Compromise can be devastating, as evidenced in this article written by Proofproint. The results of BEC scams vary, and some businesses even experienced millions in losses. It is well-worth a read to understand the risks.

When you protect your business, you protect your customers too. In many instances where trust is broken, customers will look for a company that takes their privacy seriously.

Other risks to businesses include:

Invoice or Billing Email Fraud
Fraudsters send fake emails to employees pretending to be trusted vendors to intercept payments

Phishing & Malware Infections
Emails with dangerous links or attachments transfer viruses to your computer when clicked.

Asset Misappropriation
Internal theft of cash, inventory, or equipment

Payroll Fraud
Employees exaggerate hours, falsify attendance, or enlist accomplices to inflate their payroll

Read more examples to be aware of on our Cybersecurity and Fraud Prevention Webpage.

A NOTE ABOUT SOCIAL MEDIA

In today’s digital world, it’s easy for attackers to figure out who works where and what employees’ job titles are (thanks, LinkedIn!). Having a social media profile isn’t inherently bad, but it does make you more visible—and that information can be used against you. Awareness is key: understand how your online presence can become a tool for fraudsters.

Ten Steps to Strengthen Your Business

Criminals are constantly evolving their tactics, targeting both physical and digital vulnerabilities. The good news? You can stay ahead by taking proactive steps to safeguard your operations. The following practical measures will help you strengthen defenses and reduce risk.

PHYSICAL STEPS

1. Schedule Regular Security Trainings With Your Employees
   Knowledge is the best weapon! Make your meetings interesting by reading real-world examples
2. Secure Entry Points
   Install locks or access control systems for areas with sensitive information or money
3. Get A Shredder
   Prevent dumpster divers from gaining sensitive information inside discarded mail or old documents.
4. Clean Desk Policy for Employees
   Ensure no sensitive information is left out after hour
5. Install Security Cameras
   Having a few extra sets of eyes is never a bad idea, and usually just having them deters criminals. If you’re going to do this though, you might want to consider improving the lighting around these areas

DIGITAL STEPS

6. (You’ve Heard it a Million Times) Use Better Passwords
   The best way to make a strong, long password that you can remember is to make your password a sentence. Test you password strength here to see exactly how long it would take hackers to crack your password: http://passwordmonster.com/
7. Stop Hitting “Remind Me Later” on Those Updates – Regularly Update Your Software & Systems
   Those annoying updates often come with patches that stitch up any digital vulnerabilities in your software. It’s worth the restart!
8. Enable Multi-Factor Authentication (MFA) for logins
   Adding an extra layer of protection can successfully keep hackers at bay – even if they’ve figured out your password
9. Set Up Automatic Backups
   By doing this you can ensure that your data is recovered even in extreme cases such as ransomware or system failure.
10. Give Your Laptops a Security System
    Firewalls, antivirus & anti-malware tools, alerts for unusual logins or transfer attempts… trick your laptop out! It will both keep your information safe AND extend the life of your computers and laptops.

Fraud Won’t Wait. Neither Should You.

Fraud isn’t slowing down. The data makes it clear: fraud is a growing threat that impacts businesses of every size and industry. Ignoring it isn’t an option. By staying informed, implementing proactive security measures, and fostering a culture of awareness, you can significantly reduce your risk. Remember, prevention is far less costly than recovery. Protect your business, protect your customers, and send a clear message to fraudsters that you’re not an easy target.