Mahi Sall, Advisor, Fintech-Bank Partnerships, Payments and Financial Inclusivity
January 25th, 2023
Mahi Sall is the CEO & Founder of FinXpair, a Berlin-based strategic advisory boutique firm focu[...]
How Corporations Are Protecting Themselves From Fraud
Guest Post | Jun 17, 2021
Although smaller businesses are more likely to be targeted by cybercriminals, large corporations are having to employ much tougher defences. That’s because they deal with more financial resources, more data, and higher customer expectations. As a result, they are investing in the technologies and the people that make it easier to detect the increasingly sophisticated frauds and scams that cybercriminals use.
See: Comparison of UK banking providers’ fraud controls
The key is to make it as difficult as possible for fraudsters to receive payments, and there are multiple methods of avoiding those payments or recognizing when a fraudulent payment has occurred. Learning lessons from large corporations makes it easier for smaller businesses to recognize where they can implement their own fraud defences.
Employee Training
The first step to any kind of online security is to ensure that team members are kept up to date with risks and warning signs. Every member of the team, no matter their department, needs to be aware of the online safety procedures and the detected fraud process of the company. They also need to know the specific threats that their role might be expected to be faced with. While basics such as password management should already be part of your online security policy, even staff training on how they use their personal email and social media accounts when discussing work should be a regular part of the company calendar.
Secure Customer Payment Systems
There are a variety of ways to ensure customer payments are protected from fraud. To prevent fraudulent refunds, there is a range of valuable email scanning tools that corporations use to detect and then block any emails that come from unknown domains or that come with malicious content. Also more common to see being implemented is a fraud verification process that uses consumer identity and AI to keep businesses safer.
Additionally, the larger a business, the more need there is for a rapid alerting system that lets team members know that a new destination account has been introduced that has never been used for an issued payment. The final must-have for more secure client payment systems is a firmly established emergency protocol, where there is a very clear set of steps towards recovery.
Supplier Onboarding Processes and Payments
The onboarding process for new suppliers should have a set series of steps that need to be followed regardless of internal pressure. All new suppliers need to come with a valid email address and a single phone number that a relevant team member can use as needed. When it comes to payments to suppliers, each stage needs to be documented, whether those are one-off payments or recurring ones. There also needs to be a system in place that makes it easier for employees to handle a lack of the usual authorizations when there is an urgent situation. Finally, any changes to billing details from existing suppliers need to be validated using the already collected contact details.
Although fraudsters and cybercriminals use both traditional and cutting-edge methods for committing fraud, there are more tech solutions than ever before. By watching the technologies and processes that the biggest corporations use, smaller brands can identify which can be implemented into their own business strategies. When no business is immune to fraud attempts, knowing how to detect and avoid fraud is as important now as it’s ever been.
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