Helping You Protect Your Business
Support your bottom line by fighting fraud on the front line.
Don’t just have tools to f ight fraud. Get an arsenal.
You’ve worked hard to grow your business. But fraud and other crimes can quickly undermine a business’s success – and damage its reputation and bottom line. At CB&T, we take the security of your business as seriously as you do. Along with leveraging sophisticated technology and policies to help protect customers’ data, we’re committed to helping you understand and respond to security threats. Because most losses related to fraud result from a lack of internal controls, having the right security technology and internal protocols is key. So take a few minutes to review these strategies. And build a workplace that limits your risk of losses from fraud.
Technology is evolving. So are criminals.
Today’s innovative technologies and online resources certainly make it easier to serve your customers. But, these same technologies also give criminals sophisticated tactics to defraud your business. At California Bank & Trust, we provide a wide range of tools to help protect your business against fraud. This guide provides specific ways you can help minimize risk and help protect your assets.
Minimize Your Risk of Check & Electronic Payment Fraud
Checks and electronic payments are critical to your operations, but they’re also major targets for fraud. Criminals may attempt to alter your business’s checks or use sophisticated laser printers to counterfeit them. Or, they may attempt to gain access to your accounting system and initiate a fraudulent wire transfer. Here are ways to help minimize your risk: • Use a well-known check printing company, and be sure your business’s checks include security features such as artificial watermarks, a warning band that calls attention to security features, and microprinting that copiers and scanners cannot easily duplicate. • Subscribe to Treasury Management services such as Positive Pay that help you more efficiently review account activity. This can reduce the risk that an altered check, counterfeit check, or fraudulent electronic (ACH) payment will debit your account. • Set clear guidelines for the use of passcodes and other online access credentials to help protect computer networks and control data flow. • Secure your offices by keeping check stock and sensitive files locked, and monitor the assignment of keys. • Limit access to company data to those employees who need the information to perform their duties. • Always check references of companies you do business with – especially if they will have access to secure locations or areas of your network.
Know Your Employees It can be hard to consider the possibility of crimes committed by your staff, but embezzlement and other internal fraud are an unfortunate reality. Often they’re crimes of opportunity that exploit a lack of internal controls. Take these steps to help prevent such losses: • Thoroughly check references of all job applicants to confirm employment dates and spot time gaps on resumes. • Perform background checks on employees who will have access to your financial accounts and sensitive company information. • Have a system of dual controls for blank checks, invoices, accounts receivable, and online payments. To help maintain accountability, separate employees should issue checks and reconcile bank statements. • Check all payments against invoices to confirm they’re legitimate and that the services were authorized. Beware of Phishers Be wary of any mail, telephone, or email request for verification of your business information. This may be a “phishing” scam to gain access to confidential information. Here are ways to avoid such scams: • Educate your staff about phishing and adopt a policy that all outside inquiries about your company be referred to a principal or senior executive. • Don’t respond to requests to verify the identification number on office technology like copy machines. This information can be used to send fake invoices. • Review all invoices before payment to confirm that the services were authorized.
How to help stop fraud in its tracks. At CB&T, your business can access a wide array of services 1 to help stop fraud. Positive Pay & ACH Positive Pay Help prevent unauthorized payments by rapidly reviewing transactions and making approval decisions online. Positive Pay matches checks presented for payment with information you provide to identify discrepancies, and ACH Positive Pay extends this layer of protection to your electronic transactions. Account Reconciliation 2 Help reduce fraud and streamline tasks with an improved audit trail of activity and increased automation. Check Block Designate accounts to accept only electronic or deposit activity to prevent the processing of fraudulent paper-based check transactions. Automated Clearinghouse (ACH) Services Eliminate the possibility of lost or fraudulently endorsed checks by transmitting payments
electronically. Invoice-to-Pay
Increase control of outgoing cash flow, help reduce fraud risk, and boost efficiency in your accounting department with this fully integrated invoice-to-pay solution. Lockbox Services Help speed up payment collections, turn receivables into usable funds more quickly, and eliminate the
expense of processing remittances. Commercial/Business Credit Card
Use credit cards for vendor payments and other expenses to help reduce fraud risk and increase control.
Follow Computer & Internet Tools Now that electronic communication and transactions are the norm, businesses must work to guard against new forms of fraud and cybertheft. These measures can help safeguard your network and devices: • Keep your operating system and applications up to date. Implement firewall, anti-virus, and anti-malware programs, including a security plug-in for your web browser. • Ensure your computers are being backed up to help protect data in the event of a computer failure. • Never use the same computer to initiate and approve transactions. Each user should log in from a separate computer. • Use “strong” passwords with at least 8 characters that include a combination of mixed case letters, symbols, and numbers. Employees should change passwords frequently, and should never share passwords with anyone. • Have separate login credentials for each user accessing bank systems. • Set your computer to lock after a period of inactivity. • Set guidelines for employees’ internet use. To prevent the spread of malware, make sure your staff knows not to install software from unknown sources, click pop-up ads, or open email attachments or links from unknown senders. • When traveling for business, don’t log in to password- protected sites while using a public computer or unsecured network. • Delete online user IDs as part of the exit procedure when employees leave your business.
Add Protection to Transactions & Sensitive Information Online fraud and other crimes often target departments with access to your bank accounts or sensitive information. Use these policies and processes to help protect your funds and company data: • Make sure requests for wire transfers or changes in wiring instructions are confirmed in person or over the phone using a known phone number. Also watch for unusual wire instructions that request funds be sent to a different state or country. • Use dual authorization for all bank transactions, including wire transfers, online ACH originations, ACH direct transmissions, and remote deposit. • Restrict and monitor employee access to account information and the ability to move money. Have separate accounts for payroll and operations. • Establish transaction dollar limits for initiation, approval, and release of money transfers. • Separate responsibilities for initiation and approval of transactions, and for auditing your monthly bank statement, to increase employee accountability. • Review and reconcile all accounts daily and monthly, and start receiving account alerts to help you monitor balances, transfers, and changes to users’ email addresses and passwords. • Train your staff on controlling access to confidential information, and create a policy for the destruction of sensitive documents. • Have a detailed contingency plan in case of a data breach or other cyberattack. By observing these and other sound business practices, you not only reduce the risk of fraud, but also better protect confidential information about your customers and employees.
Fraud Prevention Resources For more information, please visit calbanktrust.com/fraudprevention or refer to these agencies:
FBI: fbi.gov/scams-and-safety Federal Trade Commission: ftc.gov
1. Products and Services listed may be subject to credit approval, agreement, or contract. Terms and conditions apply. Fees may apply. See a bank representative for details. 2. Requirements: Partial account reconciliation: Your own inhouse reconciliation system that can interface with California Bank & Trust’s automated output. Full account reconciliation: Capability to provide issue input in standard formats, such as comma-delimited or fixed- field files. Deposit reconciliation: Requires deposit tickets encoded with location number and access to Treasury Internet Banking to view deposit images.
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