The holiday period can offer rich pickings for fraudsters. Criminals take advantage of the absence of managers or temporary breakdowns of controls to divert or extort funds and put your cash flow in danger. But precautions can be taken, because it is often the human factor – naivety, in short – that allows fraudsters a way in.
Here are a few tips to protect your business against fraud
Urgent instructions in an unsolicited phone call or email, sudden orders for large quantities with no haggling over the price, changes of a supplier’s bank detail or a customer’s address, a payment reminder for a bill you’ve already paid: these behaviours should alert you, so don’t just check, double-check.
If you’re in a decision-making role, your out-of-office message can give precious clues to fraudsters, who will then try to impersonate you while you’re away. Make sure you don’t give away too much detail.
Agree a secret code word, or a precise answer to an everyday question, with your back-up or secretary. If they receive an instruction that purports to come from you, they will then be able to confirm whether it really is you or not.
The person acting as the second signatory has an outside view of the transaction and will be able to detect fraud more easily.
Communicate the plan to all your staff before the holidays begin. Include an emergency contact number, which should be posted all over your premises.
There is no such thing as zero risk. Fraud insurance protects you against every risk of fraud
If you want to minimise your risk of financial loss, consider a fraud insurance policy that protects you against both traditional fraud and cyber fraud. Euler Hermes is the only insurer in Belgium that offers both forms of cover in a single policy.
For more information about our fraud insurance, don’t hesitate to call us on +32 (0)2 289 31 11 or fill in our contact form.