Financial fraudsters are getting smarter. Accounts Payable Automation and financial control software like TRAILD ensures that the right people in your business get the right information and warnings to approve payments quickly and accurately, ensuring you stay one step ahead of cyber-criminals. TRAILD helps manage your risk of fraud and mistaken payments.
Imagine: In the heart of your thriving business, an email lands in your inbox. It’s from a trusted supplier, a partner you’ve worked with for years. They’ve changed their bank details. The email looks authentic, complete with the supplier’s logo, signature, and even prior email trails. You don’t suspect a thing.
You transfer $40,000, a routine transaction. But the money never reaches the supplier. Instead, it lines the pockets of a scammer who has not only infiltrated your IT system but also intercepted your responses. The supplier’s email address was correct, but they never received your responses. The scammer has found a way to hide your responses from the original supplier.
The first time you hear about this scam is when the supplier calls, asking about the payment. The realization hits like a punch to the gut. The money is gone, and the trust you had in your systems is shattered.
The loss of $40,000 is a significant blow, but the real pain goes deeper. It’s the trust that has been broken, the relationships strained, the countless hours spent investigating the breach, implementing new security measures, and rebuilding trust with suppliers and clients. The ripple-effect of this one email is felt throughout your business.
Could this have been avoided? Yes. The change in bank details was just one of many small red flags, some of them very subtle. Scammers often impersonate familiar suppliers, hacking into your email or the suppliers’ emails to correspond with you. The invoices look genuine, making the scam hard to spot without sophisticated review technology like TRAILD.
So, how do you protect your business from such invisible threats? Here are 5 ways to protect your business:
- Question Everything: Even if an account update comes from a trusted source, verify bank detail changes directly with the supplier using a known and trusted method of communication. Ideally, use a third-party database like TRAILD to validate your findings.
- Educate Your Team: Make sure your team knows the signs of phishing and email scams. Ensure your system presents approvers with warning flags before the point of payment.
- Secure Your Systems and workflow: Use secure communication systems and regularly update security protocols. If your workflow is via email, consider using a secure workflow tool like TRAILD to manage approvals and communication about supplier payments.
- Monitor Transactions: Keep an eye on all transactions and investigate anything unusual.
- Foster a Culture of Awareness: Encourage a culture where questioning and double-checking are the norms.
Good AP process achieves more than just protecting your business. It protects the trust you’ve built with your suppliers, your clients, and your team. Don’t let a simple email bring down what you’ve worked so hard to build.
TRAILD brings effective process, security, and Accounts Payable automation to businesses of all sizes. Call Mark today on 03 9964 7505 or sales@traild.com.au.