Concrete steps for fraud prevention in your organization
In the last blog posts, we dug deeper into a recent phenomenon which is CEO fraud. A form of fraud where an attacker mimics the email of the CEO or another C-level executive of the company and asks you to transfer money quickly. While it’s hard to imagine ourselves answering to one such email by making our CEO proof that he is really who he claims he is there are several measures we can take to reduce the risk of falling victim to this new threat.
The key to fighting of cyberattacks lies within careful combining technological and human measures. It all starts with a strong corporate culture which is best combined with automated financial monitoring software that stop all suspicious payments.
An integrated platform is better protected from cybercrime
Nowadays, many organizations use separate platforms for different parts of their cash management process, for example, each bank has a particular system associated. But in industries with high volumes of invoices, such as construction and retail, there is a greater need to harmonize cash flows to increase protection. That said, internal risks can be drastically reduced by following some basic rules.
Reinforcing corporate culture
Foster a corporate culture which prioritizes security and transparent cash management. This requires ongoing, open dialogue between the finance and IT departments. In the digital economy, where change happens quickly, this is vital. Companies must prioritize continuous (security) updates of the software they use.
Monitor cash management
Draw up a plan to swiftly pinpoint and react to suspicious transfers. Focus on cash flows associated with substantial risks. As mentioned earlier, these include manual payments carried out by those in executive positions. Don't forget to draw up routines to provide secure access for employees. The plan should include also include a handbook, which outlines the worst case scenarios.
Ensure compliance with industry-specific guidelines. Use solutions of that support the single platform idea. To substantially improve protection against financial cybercrime, it is also necessary to carry out ongoing risk analyses and update existing business, IT and payment systems.
Using automated control mechanisms
Implement multi-factor authentication across your systems, often referred to as ‘four eyes principle’ because as we all know, four eyes see better than two. Make use of automated software that can blacklist or flag unusual transactions.
In summary, there are a lot of behavioral measures you can take but you also need to make sure that the tools you use are integrated and allow you to validate and flag suspicious behavior in your cash-management automatically.
Find out more how Nomentia is helping to protect more than half of the companies listed on Helsinki Stock Exchange against cybercrime with their end-to-end cash management solution.