In today’s fast-paced digital world, fraud is more sophisticated and widespread than ever before. Criminals target businesses of all sizes, and the consequences can be devastating—leading to financial losses, reputational damage and operational disruption. From business email compromise (BEC) schemes to mail theft and phishing attacks, business owners must remain vigilant and proactive to protect their organizations.

Common Types of Fraud Threatening Businesses Today

1. Business Email Compromise (BEC). BEC scams are on the rise, costing businesses billions of dollars each year. In a typical BEC attack, fraudsters impersonate a trusted executive or vendor through a compromised or spoofed email account. These emails often request wire transfers, payments or sensitive information, leading to substantial financial losses.
2. Phishing and Ransomware Attacks. Phishing emails trick employees into clicking malicious links or downloading infected attachments. These attacks often result in ransomware infections, where hackers lock critical business data and demand hefty payments to restore access.
3. Mail Theft and Check Fraud. Criminals are targeting businesses by robbing mail carriers and stealing outgoing checks. They then use sophisticated methods like check washing to alter details and cash stolen checks.
4. Vendor Fraud and Fake Invoices. Fraudsters exploit trusted relationships with vendors by sending fake invoices or modifying legitimate payment information. Without stringent verification processes, businesses can unknowingly pay fraudsters instead of the intended vendor.
5. Account Takeover and Credential Theft. Cybercriminals gain unauthorized access to business accounts by exploiting weak passwords or compromised credentials. Once inside, they can initiate fraudulent transactions or steal sensitive data.

How to Protect Your Business from Fraud

1. Educate and Train Employees. Your employees are your first line of defense. Regularly train them to recognize phishing attempts, suspicious emails and unusual payment requests. Emphasize the importance of verifying wire transfer instructions through a secondary communication channel, such as a phone call.
2. Implement Strong Email Security Protocols. Use multi-factor authentication (MFA) for email and financial accounts to add an extra layer of security. Configure your email systems to flag and block external emails that may spoof trusted addresses.
3. Verify Vendor and Payment Requests. Always verify payment requests, even if they appear to come from a familiar vendor or senior executive. Establish a strict process for confirming payment details, such as requiring a second level of approval for large transactions.
4. Protect Sensitive Data and Accounts. Implement robust password policies that require employees to use complex, unique passwords. Consider using a password manager to safeguard sensitive information and enable MFA on all critical systems.
5. Safeguard Your Mail and Payment Processes. Avoid mailing checks whenever possible—opt for secure electronic payments instead. If mailing checks is necessary, use secure, tamper-proof envelopes and drop them off directly at the post office. Consider using a locked mailbox to prevent mail theft.
6. Monitor Accounts for Unusual Activity. Set up alerts for suspicious transactions and review your account activity regularly. Quick detection is key to minimizing losses if fraud occurs.
7. Establish a Fraud Response Plan. Develop a comprehensive fraud response plan so your team knows how to act quickly in the event of a security breach. Time is critical in mitigating potential damages.

Protecting Your Business with Busey Bank

With each passing day, fraudsters are becoming more sophisticated—and no organization is immune to these fast-moving developments. By taking proactive steps, you can help prevent costly financial losses and protect your business’s reputation.

At Busey Bank, our Treasury Management team brings a wealth of expertise and experience to the table, offering tailored solutions designed to enhance your organization's security. To learn more about how Busey can help you safeguard your business, visit busey.com/treasurymanagement.

If you are already a Busey customer, please contact your Busey Relationship Manager or Treasury Management Specialist with any questions or for additional details on our fraud protection solutions. You can also check out Busey’s Fraud Prevention FAQs in order to learn more about how to protect yourself, your information and your business from fraudulent activity.