Technological advances, the increasing amount of data requiring protection and the sharp rise in social media use are making businesses more vulnerable to  fraud  attack. CEO fraud and false identity fraud with fraudsters posing as customers or suppliers are a growing threat to businesses. Fraud is not always about a third party criminal activity. Your own employees can also be responsible for the fraud. There are thousands of white-collar crime cases every year.

According to a study conducted by Allianz Trade France and the DFCG in 2021, 2 in 3 companies have experienced at least one fraud attempt and 1 in 3 companies suffered at least one proven fraud in 2020. Whether fraud is committed inside or outside your business, financial losses have a major impact on your business and can often run into millions of Euros.

Companies are too often interested in fraud when fraud has already occurred. At this stage, only reactive measures can be taken to limit the impact and to ensure that this specific case can no longer occur, for example by firing the fraudster in question. Prevention is better than cure. Fraud must be combated preventively and only a combination of prevention and detection measures can sufficiently ensure that the risk of fraud is under control.

1. Be vigilant

If you notice something strange, be cautious. Do not open any suspicious link from companies or people you do not know. Show the same distrust of the websites you visit.

2. Give a call

If you receive a suspicious e-mail asking you information about your company, call to check if the request is justified. Your financial institution will never contact you by email to request personal or confidential information.

3. Know your suppliers

The e-mail should not be your only means of communication with your suppliers and other partners or employees. Arrange other forms of contact with them. Get to know them well. This will allow you to identify earlier a request that does not fit with the habits of a supplier.

4. Assign payment limits

The limits granted to employees with little experience should be lower. Even if you are busy, do not try to avoid any work by assigning your employees higher limits. Assign appropriate financial limits and reevaluate them regularly.

5. Apply dual approval

Make sure at least two persons authorize the payments. This two-fold approval mechanism will protect your company. The check from a second person allow identifying errors or attempt of fraud that can be costly to companies.

6. Check your bank accounts regularly

If you closely follow the activity of your bank accounts, any fraudulent operation will immediately raise your awareness. Keep in mind that even if the policy of your financial institution is to reimburse any amount related to an unauthorized transaction, it may take time for reporting incidents. If you suspect any fraud, notify your bank immediately.

7. Update your software

An outdated software cannot adequately protect any information. Install an antivirus software and update it regularly, create backup copies and make use of external technology experts.

8. Raise awareness among your employees

Make sure your employees know the threats that currently exist and tactics used by fraudsters. Offer them training on the techniques and policies related to anti-fraud campaign. Regularly remind employees of the importance of being vigilant. These reminders are a very effective way of preventing fraud.

9. Provide a procedure to follow in case of fraud

Provide a procedure to follow and communicate it to all employees. In case of fraud, it will avoid panic reactions and allow your employees to act calmly, without haste and according to the established procedure.

It is unfortunately not possible to fully cover the risk of fraud. When fraud occurs within your organization, act resolutely: limit the effects of the fraud, appeal to professionals, document everything and inform you fraud insurer.

Inform the authorities

You first have to inform the authorities that you have been the victim of fraud. A declaration to the police is essential to start a compensation procedure. Moreover, they can guide you in the procedure to follow in case of fraud.

Notify your IT department

Your IT team may be able to neutralize an attack against your systems, especially if you notify it immediately. Even if some damage has been caused when an employee clicked on a malicious link, your technical team could limit the effects of the attack on the rest of the company. Block directly the accesses of the employee from whom the fraud occurred.

Appeal to professionals

Have the fraud determined by an expert. The sooner you do that, the more you limit your losses. If there is effective fraud and it is detected quickly, you can prevent the evidence from being destroyed. An expert also helps you prepare a claim file for your fraud insurer.

Document everything

Collect all documents to prove the fraud. This paper trail helps the expert to detect the source of the fraud and to list all the steps of the process. Document in detail everything you know about the suspected perpetrators and about the fraud incident, including possible police intervention.

Inform your fraud insurer

If you have a fraud insurance, inform your insurer so that he can open a claim file correct in due time. Your insurer will also appoint an expert specialised in fraud. If the offender is criminally prosecuted, a lawyer must take the necessary steps.

Whether the fraud is committed either internally or externally from your company, the financial losses will generally have a major impact on the company. With our fraud insurance, you will be protecting your company against financial losses incurred as a result of internal or external fraud.

In addition, we offer you the most extensive fraud insurance available on the market. It will protect your assets and cover you for losses incurred by fraud. Not only financial losses but also damage to systems and attempts to harm your company’s reputation.

Contact our team for a customized solution. Our advisors will be happy to help you.