We have spent an extensive amount of time discussing the risks to your personal finances with respect to fraud. While there are significant personal benefits to mitigating fraud and training yourself to be on the lookout for fraudulent attacks, there is also a huge benefit to your workplace in having employees that really understand the ins and outs of the fraud landscape. Every day, employees, whether unwittingly or not, can make themselves vulnerable targets if they aren’t careful. Not only does fraud jeopardize your own security but it can also pose a large threat to the organization you work for.

The types of workplace scams:

1. Phishing Emails and Spear Phishing: Scammers often will send emails pretending to be from reputable companies to get employees to reveal either personal or company information. This can also often include sending links for the employee to click on that will allow the scammer access to company IT systems. Spear Phishing is a type of phishing, mostly in workplace situations, where the employee’s personal name and information is used in the scam. This is possible because your life as an employee is often more publicly accessible than yours as an individual.
2. Baiting: This is when the fraudster sends communication that offers something enticing to an employee such as free services or inclusion into an exclusive corporate event. Oftentimes these scams are set up with the intent of getting the employee’s personal information or the company’s information.
3. Pretexting: This involves a scammer pretending to need personal, financial, or company data to confirm the identity of a recipient to allow them to access a certain system, certain data, or other valuable information
4. Tailgating or Piggybacking: In the workplace, not only is digital security extremely important but, there is an element of physical security that must be considered too. Piggybacking is when someone follows you through a badge-in access area without scanning a badge, with the intent of causing harm to physical IT or company systems.

The risks this poses to your employer

Employers spend a huge amount of time and money to safeguard against these risks. This is because situations where a corporation has been defrauded can have many costs:

1. Financial losses: The most obvious of the risks is that the employer could lose money either that is given to the fraudsters by accident because of a scam or in trying to mitigate the damage done by a scam in their organization.
2. Reputational damage: Oftentimes, being exposed to fraud can leave a company providing poor or unreliable products or services to the customers. Sometimes situations of fraud can leave a company’s major systems shut down for a period of time which damages the way the customers see that organization.
3. Operational setbacks: The loss of important data can often lead to project delays for crucial projects or compromise of important business data.
4. Legal consequences: Breaches, especially ones involving clients or customer data can often lead to lawsuits or hefty fines that cost time and money for the company to deal with.

Guarding against potential fraud in the workplace: make it collaborative

1. Leverage the IT Department: Your company’s IT department is the first line of defense. They can provide anti-malware and phishing tools, offer regular training sessions, or act as a quick response team for any potential compromises or scams.
2. Stay updated: Attend the cybersecurity workshops and trainings that your company offers. No matter what your position or rank is in a company, you can always be vulnerable to fraud in the workplace.
3. Double-check requests: If you receive an unexpected request for sensitive company data, verify its authenticity and check through another workplace communication medium if the request is authentic.
4. Communicate with your managers and co-workers: Foster an environment where you can easily and openly discuss and report suspicious requests and activities. Regularly share knowledge when you can to stay ahead of scams as a group.
5. Pay attention to physical security: Just as you wouldn’t let a stranger in your home, be vigilant of the individuals that enter your workplace. If someone asks to follow you into a secured area, make sure their badge has access or suggest that they check-in at the front desk.

Conclusion

The workplace, just like our homes and in our personal lives, can be an opportunity for fraudsters to create scams. By understanding the potential threats and working collaboratively, employees can form a solid line of defense against fraud. After all, security in the workplace is the responsibility of everyone so, stay alert, stay informed, and keep communication open between fellow employees.

If you have further questions about how you can apply these principles of fraud prevention in your personal life, check out other Hickory Point Bank blog posts on preventing fraud with your personal information and finances.

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