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When it’s Important to Stay in the Know.
Recognizing Fraud and Common Scamming Tactics in the Workplace
With all the excitement surrounding the holidays, it’s easy to get distracted this time of year. And when you and your team let your guard down, it can make your company vulnerable to fraud or scams with costly repercussions.
Criminals view the holidays as a prime opportunity to run scams. It's when companies least expect it, opening you up to many forms of fraud in the workplace. Social engineering fraud (SEF), for example, involves a scammer infiltrating an organization and then leveraging urgency and secrecy to trick employees out of funds or information. In the face of fraud, awareness and vigilance can help. BCH’s risk management experts have outlined a few ways to help team members spot and properly address suspicious activity.
Contact Clues
First, it’s important to understand that fraudulent emails and phone calls often bypass security systems. In most cases, the contact information is an altered variation of a company phone number or email address. Comparing the email signature, phone number or URL against company records can help employees spot inaccuracies. From there, they can report fraudulent requests.
Identity Verification
Verification procedures help team members recognize scams the moment a fraudulent request comes in. This requires the person making the request to provide two pieces of information — such as an identification number and birth date — before employees can initiate further action. If the individual fails to confirm their credentials, the request is denied and reported to management.
Specialized Training
When your team is trained to handle fraudulent situations, your company is less vulnerable to risks or loss. Remember to tailor training sessions to suit team members’ unique responsibilities and roles. After all, employees with access to corporate bank accounts or sensitive personal information likely require more in-depth coaching than those with more limited responsibilities.
It’s impossible to prevent online fraud at all levels of your organization without the help of your front-line employees. At BCH, we’re here to help you prepare your team and give you the insights you need to identify fraud before it occurs.
How Employee Theft Can Devastate Any Business
During periods of high turnover and economic hardship, employers should take precautionary measures to help identify and prevent fraud before it’s too late. Read more about the simple steps your company can take to ensure honest work practices, while substantially reducing your risk.
Unemployment fraud can place sensitive personal information at risk, opening up your company to false claims and phishing attacks. It's important your team is able to spot false claims, even when they're coming from trusted agencies. Here are a few of the red flags your team should look for when it comes to unemployment fraud:
- HR receives an unemployment claim for a current employee
- Employees receive information for a claim they did not file
- HR receives an unemployment request or notice for
a non-employee
If you receive a suspicious claim, be sure to report the potential fraud immediately to the Texas Workforce Commission. Learn more about how to recognize fraudulent claims in our latest edition of HR Insights.
