Latest Fraud Prevention Insights from Central Bank

Fraudsters are always trying to get their hands on what isn’t theirs — and in today’s high-tech world, they have more tactics at their fingertips than ever. Central Bank is here to help you stay up to date on the latest scams, providing ways to help recognize and prevent them.

WHEN VENDOR PAYMENT REQUESTS AREN’T WHAT THEY SEEM

Vendor email compromise (VEC) is a growing threat that targets one of your business’s most trusted financial relationships — its vendors. Instead of reaching out as an obvious scammer, fraudsters gain access to, or convincingly imitate, a legitimate vendor’s email account to request changes to payment details. Because these messages often arrive in familiar threads and match previous communication, they can be difficult to spot.

Staying aware of how these scams work and knowing what to watch for can go a long way toward protecting your funds and data. Here, Central Bank offers a few important tips to help keep your business secure.

• Understand How VEC Works: Fraudsters often gain access to a vendor’s email account or closely mimic it, then monitor communications to learn billing cycles, payment processes and communication styles. Once they have enough information, they send what appears to be a legitimate request — such as a “revised invoice” or updated banking details — designed to redirect funds.

• Know Why VEC is So Effective: These attacks succeed because they rely on trust and timing. Messages may come from real email accounts or appear within existing threads, using familiar language and expected timing. With no secondary verification in place, even careful teams can be caught off guard.
 

KEEP YOUR FUNDS AND DATA PROTECTED

These simple steps can save you tremendous trouble down the line.

• Verify All Payment Changes: Always confirm requests for updated banking or payment details by contacting the vendor through a known, trusted phone number — and keep a list of authorized contacts. Avoid relying solely on email communication for financial changes.

• Implement Approval Controls: Require dual approval for payment changes or large transactions. Adding an extra layer of review can significantly reduce the risk of unauthorized transfers.

• Train Your Team to Spot Red Flags: Encourage employees to question urgent messaging, unexpected changes in tone or requests for secrecy. Vendor emails coming through free accounts should raise concerns, as should bank account changes that coincide with invoice due dates. Even small inconsistencies can signal fraudulent activity.

Stay Educated & Informed with Central Bank

Central Bank SVP of Information Security & Security Officer Teri Petrzelka covers steps you can take to safeguard against online threats.

HERE, HELP IS ALWAYS NEARBY

With systems and safeguards to keep your data safe — and trained bankers who are ready to answer your questions, we’re here to help.

Central Bank  | cbhou.com | 832.485.2300
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