The commercial property insurance market has faced rising premiums since 2017. While such rate jumps showed some signs of slowing in 2022 by largely remaining within single digits, this moderation didn’t last in 2023. According to industry data, commercial property insurance premiums surged by an average of 20.4% in the first quarter of 2023 alone, representing the first time the segment has seen average rate hikes above 20% in more than 20 years. In the…

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…