There is no doubt many businesses are being pushed to adjust and make changes as COVID-19 sweeps the payments landscape. Fraud was prevalent before the pandemic, and now with fraudsters adjusting business payment scams to exploit the pandemic situation, every organization is a potential victim. It is important to stay up-to-date on the latest fraud tactics to secure your business against new attacks.
With an increase in digitalization and the added element of spending more time online rather than in the office, payment fraud is on the rise and now is the time to improve your AP and AR protection measures. Banks and financial institutions are left to face new scam strategies head-on, and the first step in navigating the era of cybercrime is questioning the legitimacy of what comes across your computer.
A recent article from the Association of Certified Fraud Examiners reports that out of 4,000 website domains with the words “corona” or “COVID” registered this year, 8% were flagged as malicious or suspicious.
So, what preventive measures can your organization take in the fight against fraud?
- Navigate to sources through reputable search engines rather than clicking on emailed links and download buttons.
- Conduct independent research on new vendors, particularly those who reach out via personal phone or email. For instance, cross-checking a caller’s area code with the claimed location of the business.
- Add additional security checkpoints to current processes in place, such as a layered approval flow for new vendors to block fraudsters before it is too late.
- Add in multi-factor authorization and security questions when fielding calls about payments or invoices, to separate real vendors from imposters.
As we all navigate the changing landscape of payment fraud, it’s important to regularly evaluate your prevention strategy and develop the critical tools needed to keep your organization safe and secure.
Stay ahead of the game on the latest payment fraud information and tactics. Read the full article, “How COVID-19 Is Infecting the Payment Fraud Landscape”, by risk and fraud prevention expert Chris Gerda to learn how to protect your organization.
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