BUSINESS FRAUD IN THE DIGITAL AGE: PART 6 One of the best ways to mitigate business fraud is through insurance. There are varying degrees of insurance coverage to protect your business against fraud. Initially, these coverages were provided under a fidelity policy. With the emergence of cyber crimes, cyber liability policies were created. Some of these policies are basic, and some offer robust, cutting-edge coverages. You need to consider the coverage you need and the…

BUSINESS FRAUD IN THE DIGITAL AGE: PART 5 Your business can adopt some important controls to protect against fraud. This is a partial list and should be the beginning of an ongoing review of exposures and protections. What are potential controls? You must have a complex set of defenses to identify and prevent fraud. These should be both operational and technological controls, including: Segregation of duties throughout the accounting, sales, and procurement process. In particular,…

BUSINESS FRAUD IN THE DIGITAL AGE: PART 4 One of the most effective banking controls to protect against fraud is positive pay. Here, we’ll provide a primer on what it is and how it works. What Is Positive Pay? The term positive pay refers to an automated cash-management service used by financial institutions to deter check fraud. Banks use positive pay to match checks issued by companies with those they present for payment. Suspicious checks are returned to their…

BUSINESS FRAUD IN THE DIGITAL AGE: PART 3 The urgency to understand and combat banking fraud has never been greater. As we move further into 2024, financial institutions must remain vigilant to the ever-changing landscape of banking fraud. Here are emerging types of fraud to monitor. Rise of Synthetic Identity Fraud Synthetic Identity Fraud is a growing concern. Here, criminals use a blend of real and fabricated information to create new identities. Traditional credit-check systems…

BUSINESS FRAUD IN THE DIGITAL AGE: PART 2 Your company’s intangible assets could be at risk if you or your employees are unaware of fraud attempts. Understanding the types of online fraud could save your company thousands, or even millions, of dollars in lost money, sales, reputation, and legal costs. Here are descriptions of some current types of fraud: Forgery – Old School is back. Stolen checks are rampant and there are countless examples of…

Business Fraud in the Digital Age: Part 1 Over the past decade, businesses have been moving their payment and treasury services to the cloud, online banking systems, and to electronic payments. That has led to an entirely new set of exposures to fraud. Ironically, there is also a surge in forgery claims as people have sought to pay bills with checks to avoid cyber-related fraud. The banking and payments system is constantly evolving and so…