Why You Should Reassess Fraud Prevention for Your Business
Businesses should create a culture of security.
Capital One has become the latest high-profile data breach, after the personal information of more than 100 million customers was accessed. The hacker was quickly arrested, but not before running a months-long operation and accessing 140,000 Social Security numbers ; and 80,000 bank accounts, according to Reuters. The event is estimated to cost Capital One up to $150 million to resolve.
The damage that fraud can inflict on businesses is especially pronounced in the digital age. Cyberattacks are evolving and increasing in number, requiring companies to rethink their tools and defenses. Yet this requires a delicate balance: Investment in such measures can't come at the expense of guarding against fraud in other areas, like check or automated clearing house (ACH) payments.
Businesses need to reassess their fraud prevention strategies for modern times as well as traditional threats. With the help of the right financial institutions, organizations can optimize their position. But here's a good place to start.
Ensure you're up to date
This applies to both technology and knowledge of cybersecurity trends. An up-to-date computer and outlook are the first steps to protecting your business and your customers from digital fraudsters. As the Federal Communications Commission recommends, always have the latest security update ; for whatever software and hardware you use and own. This includes antivirus programs for email. In the meantime, try to keep pace with the common types of fraud you may encounter, such as phishing, DDoS attacks and ransomware.
Address mobile as separate
Mobile deserves fraud prevention strategies of its own, particularly if your business has an app. At an organizational level, you should have a mobile device plan that ensures employees safely and securely use smartphones or tablets for work purposes, and that data is encrypted. For your consumer-facing app, think about requiring two-factor authentication. Requiring multiple steps or credentials can help prevent criminals from hijacking an account to make bogus purchases or use as an entry point to further defraud your business.
Create a culture of security
Security should be secondhand nature to your workforce. It shouldn't just be a box to check afterward, but a driving force in decision-making. How can leaders cultivate such a culture? Through training and certification, to start. Sponsoring workshops or training bootcamps can help employees gain skills. On the motivation end, try to instill security and accountability as core values or aspects of your mission. Preaching security in the context of consumer trust and reputation can help.
Assess existing defenses
If you have a culture of security, it will be easier to identify and act on gaps. To make sure your business is protected on various fronts, look over your existing tool set for preventing fraud in credit cards, checks, ACH, wire transfer, mail and other more traditional avenues. Do you have positive pay? What about reverse positive pay? Is your billing automated and digitized? Do you comply with PCI-DSS? These are all questions you should be asking to balance your responsibilities.
Looking for tips on how to take these steps or what tools are best? Consider contacting your local Vectra Bank representative. We can help connect your business with the requisite fraud prevention tools and insight needed to safeguard yourself and your customers.