Be Careful of Business Fraud
Happy March everyone! Spring is almost here! Thank you for being here. We hope you find some really useful information in this newsletter. We would love to hear from you, if you have found this newsletter helpful.
Data Security, Fraud, Theft, and Financial Risk Mitigants:
As a business owner focused on the day-to-day aspects of running your business, dealing with employees, and customer and supply chain challenges, we can sometimes let our guard down and create opportunities for the “underground economy” to reach havoc in our business or personal finances. This month, we want to discuss ideas for reducing the likelihood of your business falling victim to fraudsters and organized crime operations. During periods of overall economic slowdowns and decline, fraudulent economic activity increases, so we need to be on guard now more than ever.
Online Payment Platforms:
Scammers are turning to Zelle and other peer-to-peer payment apps, as a means to steal people’s money. The scammer will email, text, or call you pretending to work for your bank or credit union’s fraud department. They’ll claim that a thief was trying to steal your money through Zelle and that they have to walk you through “fixing” the issue. Then they may instruct you to send the money to yourself to test out the “fix”, but the money will actually go to the scammer’s account. Never interact with anyone making a phone call to you claiming they need your help to fix an issue with your bank, credit card, or online payment platform!
Debit/Credit Card Theft:
We have seen a spike with clients having organized criminals obtaining business debit/credit card info and processing fraudulent charges. Often, the criminals will run a few low dollar transaction to verify that they have successfully stolen access to the card. Then weeks or perhaps even months after that transaction clears, they run a larger transaction successfully. With AI, the criminals now have the technology to make transactions that fit your personal/business purchasing behaviors and increase their chances of not being detected by the Card company’s algorithms that prevent fraudulent activity. Having a process to verify all debit and credit card transactions as legitimate on a monthly basis will help identify the early “set up” stages of this type of fraud.
Sensitive Data:
Businesses need to be sure to keep all sensitive data secure – either physically or electronically. Do not use standard email to send documents that have attachments which contain sensitive data. Enable two factor authentication on apps and use platforms for employee credit cards that enable you to suspend and set limits on the cards based on an as “needed basis”. Feel free to call P&L Business Solutions at 804-561-1600 to help evaluate your processes to reduce this risk.
Leverage the Credit Reporting Agencies:
The best way to reduce the chances of having loan and other financial fraud is to instruct all three credit reporting agencies to place a security freeze on your personal or business profile. This will prevent any loans being made using your identify. The freeze can be temporarily lifted when you need to make loan or credit application. Dunn & Bradstreet has an insightful white paper on business fraud using this link: Understanding B@B Fraud.
Physical Safety:
Consider consulting with a personal safety expert to evaluate risk in your particular business to help identify ways to reduce the likelihood of physical harm to yourself and employees. In the Richmond area, Ken Kelly with www.RVAPSS.com is a good resource to consult with regarding personal safety awareness.
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