Frauds Target Organizations of All Types & Sizes; Safeguard Your Union with these Tips

April 2, 2015
By Michael Fina, Radius Bank, Union Relationship Manager

Michael Fina

The number of fraud incidents that affect organizations every year continues to rise. Make sure your union is doing everything it can to help mitigate the risk of loss from fraud-related incidents. Here are some important reminders of what your organization can do to protect itself.

1.     Watch out for fraudulent transactions and bills. Scams can range from consumer payments with a worthless check or a fake credit or debit card to fraudulent returns of merchandise. Be sure you have insurance to protect against risks.

Electronic frauds by third parties can be very costly to businesses, so take them seriously. The FDIC has seen an increase in reports of unauthorized electronic transfers made from bank accounts held by small businesses. "The most common and dangerous scam for small businesses is account takeover," said Michael Benardo, Chief of the FDIC's Cyber-Fraud and Financial Crimes Section. "By sending fake emails and using fake Web sites to deliver malicious software, such as keystroke loggers, fraudsters may be able to obtain the IDs and passwords for online bank accounts and then make withdrawals from accounts."

2.     Be on guard against inside jobs.This includes employee theft or misuse of cash, merchandise or equipment as well as fraud. "Minimize risks through steps such as pre-employment background checks, automated inventory tracking systems, audits, and clearly outlined policies for personal use of computers and other business equipment," said Luke W. Reynolds, Chief of the Federal Deposit Insurance Corporation's Outreach and Program Development Section. "Also, carefully select who handles revenue from customers, pays the bills and reviews account statements. And, ensure that there are procedures in place to detect and deter fraud."

3.     Equip your computers with up-to-date anti-virus software and firewalls (to block unwanted access).Make backup copies of critical business data on every computer. Also monitor account balances regularly, perhaps daily, to look for suspicious or unauthorized activity.

And, don't click on links in or attachments to an unsolicited email that asks for confidential information, even if it appears to be from a company you do business with or the government. Legitimate organizations won't request that kind of information in an email. When in doubt, go to another source to find the organization's contact information so you can independently confirm the validity of the request.

Radius Bank is committed to providing organizations with services that protect their funds from fraud. To learn more about steps you can take to prevent fraud, including how cash management services can help, contact Michael Fina, Vice President / Institutional Banking Relationship Manager for Radius Bank. 

Michael Fina, Vice President Institutional Banking Relationship Manager 516.874.9601 – Direct 631.624.1132 – Mobile

April 1, 2015

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