In today's digital landscape, fraudulent schemes such as CEO fraud have become increasingly prevalent, posing significant threats to businesses of all sizes. As such, it's essential for companies to remain vigilant and proactive in their approach to protecting their business and reputation. Proactive measures such as random monitoring of current employees to detect any suspicious activities and safeguard against internal threats, monitoring the company's reputation for potential misuse in fraudulent schemes, and verifying requests for fund transfers or sensitive information, can be employed to help avoid schemes. 

In this article, Olivier Soucisse, Director of Intelligence and Analysis at GardaWorld, shares key strategies to help protect your company against fraud and crime-related risks.

Strategy #1: Monitoring transfer requests involving the impersonation of company executives (also known as “CEO fraud”)

One of the most well-known types of fraud is CEO fraud. 

CEO fraud is a type of cyber scam where attackers impersonate company executives to deceive employees into transferring funds to another bank account. Fraudsters deploy sophisticated social engineering schemes to establish a climate of trust and urgency with targeted employees. The targeted employee is then tricked into transferring funds, or engaging in other actions that benefit the perpetrator at the expense of the company and its stakeholders. 

"Every company, regardless of its size or industry, is vulnerable to this type of fraud. It is therefore important for them to adopt best practices to prevent this fraud, the consequences of which can be colossal," Olivier Soucisse explains. 

The solution: To counter this growing threat, Olivier Soucisse emphasizes the importance of a structural change in the process of issuing transfers. Certain indicators can raise suspicions regarding this type of fraud and prevent operational errors by the targeted employee. Verifying transfer requests with multiple levels of approval and raising employee awareness of potential warning signs can help organizations reduce their exposure to this form of financial fraud.

Strategy #2: Post-hiring verification of employees in key positions

Hiring a new employee is a crucial process for any business and is usually a core responsibility of the Human Resources (HR) department. While HR personnel invest considerable effort to ensure the integrity and reliability of the selected new talents, there is often little or no additional background checks done once a new employee joins the company. It is essential to recognize that, although candidates may present themselves with an impeccable record during their hiring process, their personal situation may change after they integrate into the company. Factors such as addiction issues, relationship difficulties, or other personal circumstances may emerge, potentially leading them to engage in wrongdoing. 

The solution: To mitigate these risks, it is recommended to conduct periodic checks, especially for employees in key positions within the organization, including executive roles, financial positions, or any other role with access to sensitive data. These checks, including background checks and criminal record checks, are crucial for anticipating and managing risks both in terms of the company's reputation and its finances. Olivier Soucisse adds: "By adopting this proactive approach, you will strengthen your company's security and protect it against potential malicious acts."
 

Strategy #3: Web and social media monitoring

Fraudsters increasingly exploit the credibility of reputable companies by falsely claiming association with them, such as citing them as clients to enhance their own legitimacy. This deceptive tactic aims to establish trust with potential victims and lends an air of authenticity to their fraudulent schemes.

Solution: Attempts to misuse the company's reputation for fraudulent purposes can be detected through web and social media monitoring. This strategy entails the analysis and reporting of the company's online reputation, providing a clear view of the information circulating on the web. "This approach enables the company to anticipate potential threats and take proactive action to reduce the harmful consequences on its reputation," adds Olivier Soucisse. Thus, by integrating web and social media monitoring into its risk management practices, a company strengthens its ability to protect itself against reputation damage.

In conclusion, by employing the strategies presented in this article, your company can help prevent and mitigate the financial and reputational risks it may face while enhancing its security level.

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