Whether driven by technology, changing clientele, supply/
demand or a pandemic, the ways in which we conduct business
continues to change. Despite its unpredictability, one thing
that remains constant is the array of fraud threats aimed at
businesses. Fraudsters have been actively leveraging these
unprecedented times for their financial gain at historic rates. It
is more important than ever to remain vigilant and understand
prominent fraud threats facing businesses today. Some of the
most common threats to businesses of all sizes are:
- Business Email Compromise - Fraudsters may perform
reconnaissance on a company executive using social media
outlets or target an individual to compromise an email account.
Using the compromised or spoofed email, the fraudster
corresponds with internal administrative staff to change
payment methods for invoices or payroll and divert funds to a
criminal’s account. These email attacks are generally short in
nature, ask to not be contacted over the phone and use formal
salutations. Whenever possible, be sure to confirm any such
requests over the phone and not through replying to an email.
- Internal threats - It is a good practice to have segregation of
duties, regularly check financial statements, promote a culture
of ethics and institute controls to identify suspicious staff
behavior. It is also beneficial to educate staff on the variety of
fraud threats that exist, discuss red flags and understand the
impact a fraud event could have on your business.
- Phishing Style Attacks - Viruses and other forms of malware are
not only deployed through malicious links but are also embedded
in a variety of attachments. Once opened, the fraudster may
be able to track keystrokes gaining access to websites visited,
usernames, and passwords. Be sure to investigate links and do
not open attachments unless they are expected. Text messaging
has become a popular channel for phishing attacks as many
have grown to trust text communication methods.
- Tech support - A common scam in which a fraudster posing
to be from a tech company calls you stating that your computer
has an issue and offers to fix the problem. Their objective is to
obtain your online credentials, remote computer access and/or
payment.
- Utility Scams - Fraudsters call to inform and threaten a service
disruption due to unpaid bills and they need immediate payment
to avoid interruption. These phone calls typically come later in
the day to enhance urgency and payment is often asked for in
the form of wires or gift cards. Hang up and call the number on
your bill to confirm the information.
- IRS Scams - An email or phone call is received from a
spoofed address or number that contains threatening or urgent
messaging such as tax penalties or large unauthorized purchases
to provoke the recipient to act immediately. Fraudsters ask for
payment and/or deploy malware to your device.
CNB offers a variety of banking solutions to help mitigate fraud
threats and greatly reduce your chances of becoming the latest
victim in an already challenging world. Be sure to follow us on
social media to stay up to date on emerging trends and threats.
Visit CNBank.com/Security for current fraud
articles and resources.