Is Your Company Vulnerable To Fraud?

It’s so easy to be tricked into doing things you really shouldn’t do when on-line, especially when you’re very busy.

Fraud can cause serious financial loss, mental stress and reputation damage. Cyber criminals don’t care about company size – they look for an easy target and often exploit small businesses.     

Let’s take a look at some of the facts.  

46% of adult internet users have been drawn into an online scam or fraud, while 39% reported knowing someone who has fallen victim to it (OfCom survey 2023).

The number of businesses affected by on-line fraud and losses is staggering. Artificial intelligence ( AI ) is making it easier for criminals to extrude money and sensitive data from their victims.

According to UK Finance, the collective voice for the banking and finance industry, criminals stole £580 million through unauthorised and authorised on-line fraud in the first half of 2023.

What are the key criminal fraud traits?

Research indicates that impersonation fraud is the most common type e.g. for funds transfer, followed by counterfeit goods, investment, computer software service fraud or ransomware scams.

The most likely type of online service to encounter a potential scam or instance of fraud is  email, followed by social media newsfeed and fake websites. The most common type of content which fraudsters use to reach potential victims is through a direct message.

The trouble is, we’re all so busy in our everyday lives that time pressure and distraction means we can easily overlook these key factors and fall foul of a criminal’s intentions –  which is just what they want!

How can your company avoid trouble?

It may seem extreme but it is essential that everyone has a zero-trust attitude at all times. You and your employees’ vigilance is the main defence against dodgy emails and other media messaging.

The most common way to identify suspicious content is that it is generally badly designed or poorly written. Take time to double check URLs, content grammar and spelling.

A cash transfer is the most popular way for fraudsters to be paid, either digitally or physically, through single or multiple payments, or through direct debit. So it makes sense to take time and double check that a transaction is with a legitimate individual and/or organisation. STOP! Ask yourself the question, every time.

On-line users would benefit from an improved understanding of the key scam characteristics, such as:

• Initial Engagement – how scammers establish communication with potential victims e.g. phishing emails
• The Hook – how they draw potential victims into engagement with a scam or fraud
• Techniques Used – to sustain engagement e.g. frequent/overwhelming communication
• The Transaction Phase – how scammers defraud potential victims into handing over their money and/or sensitive information
• The Potential Impacts – associated with scams or fraud, financial or otherwise, so as to identify a scam earlier in the process rather than when it is too late.

Cyber criminals will often spoof email addresses and impersonate someone in authority. If you have any doubt, call the email sender on a number you’ve used before and/or trust, to authenticate them.

VCI Systems is an HM Government Cyber Essentials Certified company and has over 25 years’ experience of helping customers to minimise cyber risk.  We deliver effective security awareness training, advanced IT solutions/cyber security technology and managed services.

To discuss how we can help you stay safe on-line, please contact Kevin Lamb or Robert Creech on 0118 976 7111 or email kevin@vcisystems.co.uk