The Human Element: Understanding Social Engineering in AP Fraud
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June 20, 2024In today's fraud landscape, scammers employ cunning tactics to deceive businesses, such as sending e-mails posing as executives requesting urgent money transfers, or making phone calls impersonating IT personnel needing passwords. Let’s shed some light on the intricate world of social engineering, revealing the psychological strategies fraudsters use to manipulate employees and perpetrate accounts payable (AP) fraud. With this understanding, businesses can bolster their defences, and protect their financial integrity.
Here are some facts and figures to show how big of a problem this is:
- Newly released Federal Trade Commission data show that consumers reported losing more than US$10 billion to fraud in 2023, marking the first time that fraud losses have reached that benchmark. This marks a 14% increase over reported losses in 2022.
- In 2022, criminals stole over £1.2 billion through authorised and unauthorised frauds, equivalent to over £2,300 every minute.
Source: Bolster Ai
Sneaky Tricks Used by Fraudsters to Steal Money
Fraudsters are constantly devising new ways to trick people out of their money. Here are the three of their most common tactics, so you can be on the lookout!
1. Phishing E-mails: Fake e-mails that look realImagine getting an e-mail that seems to be from your boss or a coworker. It might ask you to click on a link, or open an attachment. But be careful! These e-mails could be fake, designed to steal your personal information, such as passwords or account numbers.
2. Pretexting: Making up stories to get informationFraudsters might call or e-mail you pretending to be someone you trust, like an IT person or an auditor. They will make up a story to trick you into giving them essential information, like your bank account details or passwords. For example, they might say they must verify your account or fix a computer problem. Don't give out personal details unless you know who you are talking to.
3. Impersonation: Pretending to be someone elseFraudsters might try to trick you by pretending to be someone important, like your family member or a high-ranking official. They might call, text, or even send you an instant message. They will try to sound convincing, and pressure you into doing something you shouldn't, like sending money or giving out confidential information.
How to Spot a Scam
Here are some tips to help you avoid falling victim to a scam:
- Be careful about e-mails: Don't click on links or open attachments from e-mails you don't recognise, even if they look important.
- Don't trust phone calls: If someone calls you asking for personal information or money, verify who they are before giving them anything. You can contact the company they say they are from using a phone number you know is correct.
- Don't be pressured: If someone rushes you or makes you feel scared, it is probably a scam. Take your time, and double-check everything before doing anything.
- Talk to someone: Talk to your boss or a co-worker if unsure.
How to Protect Your Business
Here are some things you can do to protect your business from scams:
- Train your employees: Teach them about scams, and spotting them.
- Practice what to do: Run drills where employees practice responding to a scam attempt.
- Make it hard for scammers to steal information: Use strong passwords and two-factor authentication (2FA) whenever possible. 2FA ensures that even if someone gets your password, they will need another code to log in.
- Have a plan: Decide what to do if someone does fall victim to a scam.
- Get Help from the Professionals: If you are worried about scams, some businesses with the proper data security measures might help.
IMS Decimal can help you improve your security, and make it impossible for scammers to steal from your business. We also have top security certifications, such as GDPR and HIPAA.
Remember, the best way to stop scams is to be aware of them, and know how to spot them. For more secure transactions and accounting, connect with IMS Decimal today
at info@imsdecimal.com