Instances of fraud have increased during the pandemic – what can you do to help mitigate the risks?
Throughout the Covid-19 pandemic, businesses have experienced an increase in the level of fraudulent activity. Many organisations have moved their business activities online and with more employees and volunteers now working from home, there are increased opportunities for fraudsters to target them.
Invoice fraud is on the rise and while not a particularly new scam, it can be catastrophic for businesses who fall victim to it. Invoice fraud occurs when a fake email address is used to contact a business, pretending to be one of the organisations’s suppliers The emails tend to mimic those that the firm usually receives from suppliers, including logos and signoffs. The email will tend to instruct the firm to direct future invoice payments to a different bank account. When the firm receives the next legitimate invoice, they unwittingly make the payment to the fraudster’s bank account. Even if the funds are recalled through your bank, there is no guarantee that the funds can be recovered.
The best way to protect your business against fraud is to educate your staff. Your organisation should deliver regular training sessions to all staff on common security threats (online and offline) as well as prevention measures that they can implement. Training should include case studies that show how to spot a fake email address and all staff should be trained to question any request from suppliers regarding changes to payment details and so forth.
Next, you should focus on defending your systems and data effectively. These days, most financial transactions take place online, so put appropriate systems and processes in place to prevent fraud.
Also invest in an up-to-date cybersecurity software package including a firewall, data encryption, automatic backup of all data and password management. Finally, all staff should change their password on a regular basis.
PS | We specialise in helping charities, and businesses in the health sector (optician, optometrist & pharmacist businesses) optimise their resources, thereby, adapting, growing, and thriving. If you want to know how we can help your business or charity, please connect with Bim on LinkedIn or send an email to info@aeaccountax.co.uk
