Two types of Internet payment fraud and how to protect your business
43984, 25 Sep. 2014
Tags: how to protect your business from internet payment fraud, internet payment fraud, payment fraud
The Internet has made it easier to run certain aspects of your business.
For example, you no longer have to spend hours queuing at a bank just to make a payment to a supplier. Nowadays, you simply make payments via Electronic Fund Transfers (EFT) and it only takes a few minutes.
While the Internet has made things convenient for you, it’s also opened the doors for criminals. They use the Internet as a platform to steal your money when they commit Internet payment fraud. And they’re constantly finding new ways to commit these crimes.
Have a look at the two common types of Internet payment fraud and how you can protect your business from falling victim to these schemes.
Don’t let criminals steal money from your business – beware of these two types of Internet payment fraud
Type of Internet payment fraud #1: Deposit scams
With this scam, a criminal deposits a fraudulent cheque into your account. He then contacts you and requests you to transfer the money to his account.
Once you transfer the money out of your account, the cheque bounces and you’re debited with the amount.
Here’s how to protect your business #2: Ask your bank to set up cheque deposits so money’s only available in your business account once the cheque clears. When you need to refund a deposit, always phone your bank and ask if the funds have been cleared.
Type of Internet payment fraud: Social engineering
With social engineering, a criminal manipulates you to get you to share confidential information with them. He then uses it as part of a bigger scam i.e. a scammer gets your full names, ID number and address and pretends to be a genuine organisation. He’ll then use this information to gain access to other personal information so he can steal money from your company.
Here’s how to protect your business: Instruct your staff to always verify the credentials of a person who is asking for private company information.
For example, if a person says they’re calling from bank ABC, they must ask for their name and confirm their credentials by phoning bank ABC and asking for that person.
It’s also good practice to phone your bank immediately if you think your bank account information might be at risk. They’ll assess the severity of the problem and take appropriate action.
Now that you know about these two types of Internet payment fraud, protect your business so criminals don’t get a cent from your business.
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