The Cifas National Fraud Database (NFD) found that the majority of fraud cases reported related to identity fraud, with social engineering tactics and the increased use of AI and data harvesting techniques contributing to this.
The largest volume increase across all fraud types is facility takeover. This has increased by 13% since 2022. The telecommunications sector was the most heavily affected in 2023, indicating a shift in criminal methods towards targeting existing accounts.
The NFD states that fraud and financial crime continue to impact people, companies, and the public sector at epidemic levels. Given these figures, it is vital to minimise the risk of fraud as much as possible.
10 ways to prevent fraud risk
- Always be vigilant
- Act ethically with integrity and honesty
- Only share information on a 'need to know' basis
- Make sure you don't become an unwitting accomplice
- Keep anti-virus software up-to-date
- Follow your company's information security rules
- Co-operate fully and immediately
- Watch out for possible signs of a DDoS attack
- Report any knowledge, suspicions or concerns
- Don't try to hide your mistakes
1. Always be vigilant
Conduct due diligence on all business associates and third parties to determine whom you're dealing with. Watch out for tell-tale signs (red flags) of suspected fraud, including employee fraud, cybercrime, and customer or corporate fraud.
2. Act ethically with integrity and honesty
Only make honest declarations (about your credentials, qualifications and expenses); avoid giving unauthorised people access to your company's data, systems, or information.
3. Only share information on a 'need to know' basis
The fewer people you share information with, the less likely you will fall prey to identity fraud. It is important only to disclose the information if necessary, and you trust the recipient of that information.
4. Ensure you don't become an accomplice
It is important to be aware of becoming an unwitting accomplice. Make sure you are alert to the actions of unscrupulous employees, customers, suppliers or others in acts of fraud. It is vital to report any suspicions you may have.
5. Keep anti-virus software up-to-date
Don't disable your anti-virus, and ensure updates are installed as soon as they become available to plug known vulnerabilities. Running out-of-date software leaves you and your company exposed to the risk of fraud.
6. Follow your company's information security rules
For example, make regular data backups, avoid sharing passwords, ignore unsolicited emails or phone calls requesting information (don't be pressured into breaching company rules), and encrypt or password-protect sensitive or personal data.
Don't click on links in unsolicited emails, avoid using public WiFi hotspots to link to your firm's network, and don't connect personal devices or download unauthorised apps.
7. Co-operate fully and immediately with IT
Guidance from IT designed to prevent fraud is valuable, so it's important to cooperate with their advice immediately. For example, follow their guidance on using firewalls, updating anti-virus software, avoiding malware, and so on.
8. Watch out for possible signs of a DDoS attack
Signs can include uncharacteristically slow response or network performance when opening or accessing files. Unavailable websites or an inability to access your firm's website could also indicate an attack, as could a dramatic increase in the amount of junk mail you receive.
9. Report any knowledge, suspicions or concerns
It is vital to immediately inform your manager or IT of anything suspicious or any errors you notice regarding suspected fraud. Whether you are certain or not, flagging these concerns can go a long way in nipping fraudulent activity in the bud.
10. Don't try to hide your mistakes
The sooner you report your mistakes, the quicker your company will be able to limit its losses. However, if you avoid admitting your mistakes, you and your company are more vulnerable to fraud attacks.
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