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 and the DFCG in 2021, 2 in 3 companies have experienced at least one fraud attempt and 1 in 4 companies suffered at least one proven fraud during the year. 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.

The holiday period can offer rich pickings for fraudsters. Criminals take advantage of the absence of managers or temporary breakdowns of controls to divert funds and put your cash flow in danger. However precautions can be taken, because it is often the human factor – naivety, in short – that allows fraudsters a way in.

1. Familiarise your staff with the most frequent risks

Urgent instructions in an unsolicited phone call or email, sudden orders for large quantities with no haggling over the price, changes of a supplier’s bank detail or a customer’s address, a payment reminder for a bill you’ve already paid: these behaviours should alert you, so don’t just check, double-check.

2. Don’t over-personalise your out-of-office message

If you are in a decision-making role, your out-of-office message can give precious clues to fraudsters, who will then try to impersonate you while you are away. Make sure you don’t give away too much detail.

3. Use a code word to prevent identity theft

Agree a secret code word, or a precise answer to an everyday question, with your back up or secretary. If they receive an instruction that purports to come from you, they will then be able to confirm whether it really is you or not.

4. Continue having invoices double-signed during the holidays

The person acting as the second signatory has an outside view of the transaction and will be able to detect fraud more easily.

5. Draw up a crisis plan to follow in the event of fraud

Communicate the plan to all your staff before the holidays begin. Include an emergency contact number, which should be posted all over your premises.

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.