Whether you own a business, run a nonprofit or work at an institution, we all face the same threats from fraud. It’s pervasive, and criminals are constantly coming up with better tactics to steal your data and money.
“It’s an old problem of course, but there are so many new ways that criminals are using to steal and they’re constantly changing,” said Sonal Bullard, head of strategy for the Wealth Management Group at Regions Bank. “Fraud security nowadays is deeply entwined with cybersecurity, so it’s more important than ever to be up to date on the latest scams and ways to stay vigilant.”
Fraud security nowadays is deeply entwined with cybersecurity, so it’s more important than ever to be up to date on the latest scams and ways to stay vigilant.
Sonal Bullard, head of Strategy for the Wealth Management Group at Regions Bank
To help with fighting fraud, Bullard and a team of Regions’ veterans have joined together for a quick, 29-minute fraud webinar to provide you an insight into threats – and tips to stay out of harm’s way.
In this webinar, three of the most common types of digital fraud are discussed and explored:
Joining Bullard in this webinar are:
- Randy Wilborn, CFE – Treasury Management, Payments and Fraud Prevention Product Manager at Regions Bank.
- Billy Smith, CWS – Institutional Services Relationship Consultant at Regions Bank.
“Every institution we know is a potential target,” Bullard said.
And the threats start with Business Email Compromise because everyone uses electronic correspondence.
“At its basic core, we’re talking about a case where a bad actor has somehow compromised the email applications,” Wilborn said. In turn, a fraudster could be “sending an email to your organization convincing someone at your organization to make changes so that future payments.”
The role of criminals is to convince legitimate businesses that they are legit, as well. But they take it a step further with urgent demands.
“They’re also using tactics in which they put pressure on the person receiving the email to be hurried,” Smith noted. “They need this to be done quickly.”
The best way to fight back, Wilborn and Smith said, is to educate employees from the top down on what to look for. Then install protocols and stick with them.
“Having proper standards and policies to follow really could make a huge difference,” Wilborn said.
Another major concern is whaling, a form of phishing where bad actors target individuals with significant decision-making abilities in a business, nonprofit or institution.
“They’re on the board of directors, CEO, CFO,” Wilborn pointed out. “ … because these guys have a much larger authority to originate a payment.”
Smith said whaling is effective because scammers take time to learn how leaders communicate – something as simple as a “TY” instead of a “thank you” at the end of an email – to help pull the fraud off.
By also utilizing social media, bad actors can be aware of when someone is most vulnerable.
“It could be easy for fraudsters to watch what’s happening in a CFO’s life and know that this person is out of the country at the moment,” Smith said, “and take that opportunity then to reach out to the executive assistant and say, ‘Hey, I’m out of the country. There’s an emergency. I need you to move these funds.’”
Again, they reiterate, reinforcing what potential threats are out there is the vital first step.
“Employee education is very important,” Wilborn said. “Anybody who works within the organization really needs to know what’s happening out there, what types of frauds are being perpetrated.”
And, secondly, having policies in place can help stop bad actors.
“If you have standards to follow, you’re less likely to fall for something when you’re emotionally involved in trying to move money quickly,” Smith said.
The information presented is general in nature and should not be considered, legal, accounting or tax advice. Regions reminds its customers that they should be vigilant about fraud and security and that they are responsible for taking action to protect their computer systems. Fraud prevention requires a continuous review of your policies and practices, as the threat evolves daily. There is no guarantee that all fraudulent transactions will be prevented or that related financial losses will not occur. Visit regions.com/STOPFRAUD, or speak with your Banker for further information on how you can help prevent fraud.