Commercial fraud – from phishing attacks and identity theft to check fraud – has been on the rise, affecting businesses of all sizes, including those in Augusta. In fact, in 2023 80% of surveyed organizations were hit by actual or attempted payment fraud attacks, according to the 2024 AFP Payments and Control Survey Report. While the holidays are a time of cheer and joy, it can also be a time when businesses are vulnerable to the seasonal spike in fraud and scams. To protect your business, follow these tips.
Verify and monitor transactions
Before establishing relationships with new vendors or suppliers, verify their credentials and track records. This can include checking business registration details, reading reviews or testimonials, and contacting other clients to confirm their legitimacy. Additionally, ensure that any changes to payment details, such as bank account information, are verified directly with the vendor using secure channels to avoid falling victim to fraud schemes like invoice manipulation or business email compromise. Don’t rely solely on email communication for critical transactions; follow up with a phone call or in-person verification when necessary.
Increase employee training and awareness
Increased employee training is essential to help staff recognize and prevent fraudulent activities within the workplace. Organizations can create a more vigilant and responsible workforce by educating employees on common fraud schemes, ethical behavior, and how to identify warning signs. Regular training empowers employees to spot irregularities, report concerns, and act as a first line of defense against fraud. This proactive approach reduces the risk of financial loss and promotes a culture of integrity and accountability throughout the organization.
Use secure payment methods
Choose secure payment systems that offer built-in fraud protection, such as ACH transfers, credit cards with fraud detection, or virtual accounts. Make sure to take extra care to verify wire transfers for payments, as they can be more susceptible to fraud. Payors should verify the wire instructions with the payment recipient from a known number—not using email instructions only. It is also important to ensure that online payments are processed through secure, encrypted channels. By prioritizing these secure payment methods and protocols, businesses can reduce their exposure to fraud and provide greater peace of mind for them and their customers.
With the holiday season upon us, it is important to remain vigilant. Putting safeguards like these in place and educating your employees can help safeguard your business so you can focus on enjoying the holidays with loved ones.
Helen Caldwell is Senior Vice President, Commercial Banker at Synovus Bank. Helen has nearly 20 years of experience in treasury management and commercial banking.
