For several years, frauds and scams in companies have been on the rise. And the holiday period can offer rich pickings for fraudsters. Criminals take advantage of the absence of managers or temporary breakdowns of controls to make their fraud attempts succeed. Discover here our tips to reduce the risk of fraud during your holidays.
Business frauds and scams are on the rise
The overall picture that emerges emphatically in the 2024 survey is that companies and organisations are increasingly taking mostly technical measures to prevent fraud. As a result, the number of cases of perceived fraud (attempts) fell by 10% in the 2023-2024 period.
We also see that as a result, companies and organisations increasingly believe themselves to be safe.This is false security because still 69% of the participating organisations experienced internal or external fraud (attempts) during the research period. This does not include the common phishing emails. The idea that a few technical measures will adequately solve the fraud problem is unjustified.
Our research on corporate fraud in the Benelux in 2024 shows that:
More fraud attempts during holidays
The holiday period can offer rich pickings for fraudsters. Criminals take advantage of the absence of managers or temporary breakdowns of controls to divert funds and put your cash flow in danger. However precautions can be taken, because it is often the human factor – naivety, in short – that allows fraudsters a way in.
Five tips to reduce the risk of fraud during the holidays:
1. Familiarise your staff with the most frequent risks
Urgent instructions in an unsolicited phone call or email, sudden orders for large quantities with no haggling over the price, changes of a supplier’s bank detail or a customer’s address, a payment reminder for a bill you’ve already paid: these behaviours should alert you, so don’t just check, double-check.
2. Set up standardised out-of-office message
If you are in a decision-making role, your out-of-office message can give precious clues to fraudsters, who will then try to impersonate you while you are away. Make sure you don’t give away too much detail such as the date of your return.
3. Use a code word to prevent identity theft
Agree on a secret code word, or a precise answer to an everyday question, with your back up or secretary. If they receive an instruction that purports to come from you, they will then be able to confirm whether it really is you or not.
4. Keep the double signature principle for payment orders even during holidays
The person acting as the second signatory has an outside view of the transaction and will be able to detect fraud more easily.
5. Draw up a crisis plan to follow in the event of fraud
Communicate the plan to all your staff before the holidays begin. Include an emergency contact number, which should be posted all over your premises.
Protect your company against fraud
Whether the fraud is committed inside your company or by an external third party, the financial losses can have a major impact on the company. With our fraud insurance, you will protect your company against financial losses incurred by most cases of fraud.
Want to know more about our solutions?
Contact our team for a customized solution. Our advisors will be happy to help you.
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