3 Simple Ways to Close the Gap: Protecting Your Business from Cyber Fraud
High-tech, elaborate scams may make the news, but most fraud happens in the gaps of business processes. Thankfully, some of the best prevention strategies are also the simplest. By streamlining and building strong routines for your business’s day-to-day, you can make it more difficult for fraudsters to target your company.
In this blog, we highlight three tips to help you reduce fraud risk.
1. Put dual controls in place for your payments
One of the simplest ways to lower your fraud risk is by using dual control for payments. This means that for a check or electronic payment to process, a separate person or team must approve it.
Why does it matter? Common scams involve receiving a payment request from a known email, when the recipient doesn't realize that the sender's account has been compromised and the payment request is fraudulent. According to IBM’s recent report, malicious insider attacks resulted in the highest average breach costs amount threat vectors at $4.92 million.1 Requiring two sets of credentials makes it much more difficult for fraud actors to take advantage of your payment process.
2. Review your cybersecurity insurance coverage and plan regularly
Does your business have cybersecurity insurance? Do you know what losses it covers? The right insurance plan serves as a safety net to help guide you through potential losses.
It is worth reviewing your cybersecurity plan and making sure it covers today’s fraud risks, especially as AI becomes more accessible for scammers. Having adequate coverage not only gives you peace of mind but makes a significant difference in how quickly your business recovers.
3. Use fraud tools whenever possible
You don’t have to fight fraud on your own. Your bank may have fraud mitigation services your business can opt into. These are usually tools designed to detect abnormalities or suspicious activity before it impacts your account. They can monitor transactions, verify payees, and flag unusual behavior.
For example, First Financial Bank’s Check Positive Pay alerts you if a scammer attempts to make check alterations, which can save you from major losses.
Implementing these tools not only protects your funds but also saves time and effort when it comes to fraud issues, allowing you and your business to focus on day-to-day operations.
Make fraud prevention a year-round commitment
Criminals are always changing their tactics, which means you should revise your defenses over time, too. The worst time to realize that your plan is out of date is when you are ready to use it. Schedule regular discussions about your fraud prevention tactics and your recovery plans, and make sure you keep the entire company informed of current fraud trends, how to identify them, and what to do to protect your business’s information.
Want more guidance? We offer a full list of best practices on our 2025 Best Practices Checklist, designed to empower you and your employees to identify and prevent fraud.
Looking to increase cybersecurity when managing financial data? Check out our Fraud Prevention Solutions or contact your treasury management officer to discuss what measures you can take to prevent cyber fraud from happening to your organization.