Tips to prevent your Business from falling victim to financial crime.

Instances of financial scams are experiencing an upward trend. Every day, there emerges a narrative of individuals falling victim to schemes that coerce them into parting with substantial sums of their hard-earned money. It's crucial to recognise that businesses are equally susceptible to such risks as individuals.

Scam 1: Urgent payment

 Fraudulent emails posing as urgent requests from colleagues, pressuring for immediate payment. These deceptive messages often contain an attached invoice or provide payment details within the email's content.

Be alert to the following red flags that may signal potential financial scams:

1. Urgent or High-Pressure Tactics:

Scammers often create a sense of urgency to pressure you into quick decisions or payments. Exercise caution in such situations.

     2.    Unusual Sender Addresses:

Check the email address or contact details for any irregularities or discrepancies from the usual communication channels. A common deceptive tactic employed by fraudsters involves creating email addresses that closely resemble legitimate ones. They may alter or switch around just a few letters, making it challenging to discern the difference at a glance.

3. Misspelled Words and Poor Grammar:

Poor language usage and spelling mistakes in official communications can be indicative of fraudulent activity.

 4. Fonts and sizes

  Scam communications may display inconsistencies in font sizes or types. Genuine messages from reputable sources maintain a consistent and professional appearance. Be cautious if you observe irregularities in the visual presentation of the text.

What to do if you suspect this is a scam

If you identify any of these warning signs, refrain from processing the payment immediately.

1. Communicate

2. Your Instinct

Trust your gut - if something feels off, take the time to verify, even if it means delaying a payment. Responsible suppliers will appreciate your commitment to security and understanding the importance of preventing fraud.

3. Less speed, more haste

Prioritising caution over haste can safeguard your business from potential financial risks. Stop, think and validate.

My experience

I once received a scam email from my boss (or so I thought) and I had only been in post for a couple of weeks. My attention was alerted as the font used in the body of the email was unusual to one I had seen before. What further alerted me was that my “boss” had signed off their email with their Christian name but he always insisted we refer to him by his surname.

Apart from this everything else stacked up, it was Friday, payment run day and he was out of the office. Ultimately it felt “off” so I called him to verify and he quickly told me that it wasn’t him. Fortunately, I didn't fall victim to the scam in this particular instance. However, I'm aware of numerous cases where individuals were less fortunate and fell prey to similar schemes. It underscores the critical need for heightened awareness and diligence in navigating the ever-evolving landscape of online threats.

Scam 2: Change of bank details

Another deceptive tactic involves fraudulent emails claiming a change in bank details, typically from an existing supplier. The communication often emphasises urgency, urging immediate action to update the payment information.

In all instances these are the recommended practices:

1. Validation

Avoid confirming via email, as the address could be subtly altered or, in more sophisticated cases, compromised. Instead, use known and verified communication channels or contact the supplier directly. Utilise a telephone number obtained from a reliable source, such as previous emails or invoices, to initiate confirmation. Avoid using any phone number provided in the email requesting the change, as it may have been altered or compromised.

Cross-check the bank details with the supplier through a trusted source, such as an official website, a physical address, or documents sent via mail.

2. Urgency

Again this is often a common ploy. Exercise caution if the request emphasises urgency. Legitimate changes in banking information should be communicated well in advance.

Other preventive measures to reduce the risk of financial fraud.

1. Educate and Train Staff:

Implement ongoing training programs to educate staff about the latest fraud tactics and reinforce the importance of vigilance in financial transactions.

2. Internal Controls:

Implement strong internal controls, segregating duties and limiting access to sensitive financial information based on job roles. Consider have dual bank signatories for payments over a certain limit.

3. Regular Software Updates and Encryption:

Keep all software, including security software, up to date to patch vulnerabilities and protect against emerging threats. Utilise robust encryption methods to protect sensitive financial data, both during transmission and storage.

4. Regular Risk Assessments

Conduct regular risk assessments to identify and address potential vulnerabilities in your financial systems and processes.

By implementing a comprehensive set of preventive measures, organizations can significantly reduce the risk of falling victim to financial crime and enhance the overall security of their financial operations.

Above all remain vigilant. The ever-evolving landscape of financial crime requires continuous awareness and adaptation. Fraudsters are indeed becoming more sophisticated with their tactics. Staying vigilant, informed, and proactive is the best defence against their evolving strategies that the fraudsters employ