A cyber threat you may never have heard of before

29639098_MCyber criminals are becoming more sophisticated in the ways they target business employees to gain access to financial records and accounts. CEO fraud is something you may not have heard of before but it should definitely be on your radar of potential cyber threats to your business.

Depending on how much time and effort the criminal spends in preparation, these attacks can be very sophisticated and catch many business owners, executives and other company employees off guard. CEO fraud involves the impersonation of a company executive to another employee by email or even sometimes through a text message to execute an unauthorized wire transfer of money or to send out confidential tax information.

Spoofing software allows cyber criminals to easily spoof a phone number and text a message that appears to come from an executive. When John in accounting receives a text from the CEO that appears to be legitimate and requests a wire transfer of funds, he is likely to comply without questioning the request. Cyber criminals are fully aware of this and this is why CEO fraud is one of their favorite tools of deception.

What can you do to stop CEO fraud? The first thing to do is let your employees know that CEO fraud exists and that no message will be sent by electronic communication or text message from any executive requesting money transfers or any sensitive financial information. If employees do receive such a request, they should report it immediately to a supervisor and never follow through with the request without a verbal confirmation from the executive.

Even with the most careful employee cyber security training, there is no guarantee that you won’t become a victim. Let us talk to you about how to protect your business with a cyber liability policy. https://accurateprotection.com/

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Safeguarding your business against employee fraud

49258230 - businessman putting money in his pocket - closeup shotEvery employer would like to think that none of his or her employees would commit fraud, but sadly, it does happen. Challenging personal situations in some families and increased employee access to company records through technology have contributed to a rise in employee theft and fraud.

Employee fraud can take many forms, including misappropriation of funds (such as forging checks); financial statement fraud (recording fake expenses and/or revenues) and other sorts of corruption such as accepting bribes in exchange for things like discounts to customers.

There are some warning signs to watch for:

  • Drug/alcohol abuse
  • Gambling problems
  • Working late hours after other employees have left
  • Sudden purchases of expensive items above salary level
  • Objections to inventory, audit or procedural changes

You can do your due diligence as an employer to minimize your risk of being a victim of employee fraud. Here are a few precautions you can take:

  • Screen new employees thoroughly, including a background check. Check all references and speak with previous employers.
  • Thoroughly review the company’s code of ethics with new hires, emphasizing you have zero tolerance of employee fraud.
  • Review your company’s financial records often and conduct inspections without giving notice to employees who handle financial transactions.
  • Encourage employees to report instances of employee fraud that they witness.

In addition to the above measures, a commercial crime insurance policy could help protect your business assets against employee theft. Such a policy could protect your business against cyber fraud, theft/robbery and other types of employee fraud by limiting your direct financial losses, paying for legal representation and reimbursing you for damage to reputation.

If you’re interested, we can review your needs and customize an insurance policy to fit those specific needs. Contact us to learn more. https://accurateprotection.com/

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