In today’s rapidly changing environment, corporate executives are expected to do everything faster—from how they do business to how they communicate with customers. Increasingly, companies are focusing on innovation to gain a competitive edge.
At the same time, consumers expect improvements in how they obtain information, take action, and manage their products and services, putting pressure on companies to speed up their processes to deliver faster than competitors. Think PayPal in the early 2000s. Think Amazon today.
Business email compromise, or “impostor fraud,” has become increasingly common. Generally these scams involve a criminal masquerading as a corporate executive, instructing employees to make fraudulent transactions. To prevent such scams, we recommended that corporate treasurers adopt strong authentication measures and security standards. One good example is multi-level authentication, or more than one set of “eyes” handling a transaction either human or electronic.
The criminal also may send a direct instruction to the bank with similar urgency, instructing to go around defined processes such as multi-level authentication, with the hopes that the “direct” instruction will suffice. Effective business banking partners should work with corporate treasurers to thwart fraudsters, training their support team on how to identify and protect against these threats.