Neena Shukla, fraud manager at Lloyds Bank Commercial Banking, outlines how Welsh SMEs can protect themselves against fraud and cybercrime.
Cybercrime costs the British economy £27 billion per year* and the pace at which these crimes are committed is accelerating.
Indeed, cyberattacks are now seen as one of the main threats to businesses across the UK. To put this into context, an attempted cyberattack happens every two and a half minutes in Wales*.
However, there are steps that Welsh firms can take to avoid being caught out by fraudsters and scammers.
Be aware
By thinking like a criminal, firms can anticipate threats before they take place. Businesses should ask themselves: What information is most valuable to a cyber-criminal? How is this information being protected? Do staff understand the preventative measures that should be taken and is there a clear procedure in place in the event of an attack?
The answers to these questions can often point to how robust a company’s cybersecurity protection is.
Staff training on this issue is vital. Worryingly, a recent poll conducted as part of our Lloyds Bank Fraud Awareness Seminar programme showed that more than a third of SMEs do not provide any form of training. Employee awareness of fraudulent scams is key to spotting threats before irreparable reputational or financial damage can be done.
Be smart
Telephone scams, or vishing, where callers claim to be a reputable source (such as a bank) are a real threat. Scammers take advantage of their unwitting victim’s trust in the organisation and trick them into divulging sensitive financial details.
These calls are increasing so businesses and consumers must be able to identify a scam. Caller ID should never be relied on as phone numbers are easy to fake. If a caller identifies themselves as being from a bank, authenticate the call by calling back on an independently sourced number. Banks will never ask for sensitive information such as PIN numbers or passwords over the phone.
Another increasingly prevalent form of fraud is email phishing, particularly within larger organisations. Known as ‘CEO fraud’, this scam involves sending fraudulent emails that appear to have come from a senior employee. Firms need a strict process in place for employees to check all payment instructions, even from within the business, to ensure they’re genuine.
Finally, invoice fraud is also major concern. Often received by letter or email, this fake request appears to be from a known individual such as a customer or supplier, requesting a change of account beneficiary. Staff should never rely on these forms of inbound requests, no matter how legitimate or familiar they appear to be. These should instead be checked using an alternative communication method, such as calling a contact directly.
Be secure
Cybersecurity is a vulnerability that criminals will continue to exploit, so employees from the boardroom to the shop floor must have a robust understanding of important cyber protocols.
By having a strategy in place and investing in staff training, firms can help prevent breaches or attacks happening. At Lloyds Bank we work by the side of businesses, offering tailored guidance and support to our customers and their employees on how to best protect themselves against banking fraud and cybercrime.
For more information on fraud scams, visit www.lloydsbank.com/fraud.
