Different changes are happening in the business world today. Many companies are moving online, and that is changing how they operate. For instance, one of the most significant changes in the business landscape is how they transact with other businesses and customers.
Some businesses haven’t completely abandoned traditional payment methods. But then, digital business payment solutions seem to be taking over the scene right now. For fraudsters, this has presented an opportunity to attack businesses that haven’t invested enough security-wise.
As a business owner, it is essential to stay updated about various B2B payment frauds. Knowing these frauds can help you prevent them and reduce their impact. This article looks into the various B2B payment frauds and cybersecurity trends to watch for in 2021.
Let’s get started.
Common Payment Frauds
As B2B businesses continue to use modern payment methods, they get exposed to various frauds. Check out these seven common frauds in B2B payments.
ACH is one of the most common and relatively easy to execute. Cybercriminals use this type of B2B fraud to transfer funds through the ACH network. There is usually a delay in processing fund transfers on the ACH network, allowing fraudsters to do their fraudulent business.
Cybercriminals need to start with stealing customer data before they begin executing this fraud. Once they have sensitive customer details such as the account number and bank routing number, the rest becomes easy. But then, despite being easy to execute, ACH frauds remain rare.
Thankfully, the ACH network has different security practices and protocols in place. Businesses transacting over the network need to abide by its rules and safety procedures to avoid becoming victims. Besides helping them stay safe, it also helps them stay compliant with NERC CIP standards.
Being compliant helps businesses to operate more securely and gain public trust. The NERC standards for electricity providers indicate what companies need to do to meet standards. In the end, that’s how to increase customer retention and boost business.
2.Digital Platform Fraud
The various digital platforms that businesses use today aren’t secure. Companies risk losing a considerable amount of money to fraudsters lurking on these platforms. However, companies use various platforms, and this diversified market makes it difficult for fraudsters to target a specific business.
But then, that doesn’t mean businesses need to overlook this fraud. There is a huge possibility of it happening, and thus every business needs to be ready to counter it when it comes. To prevent it, they need to beware of phishing and ensure they recoup funds in case of fraudulent hacking.
3.Credit Card Fraud
Credit card fraud has been on the rise in recent years. It happens when cybercriminals use a credit card assigned to you to steal funds or make purchases using cash in your account. Credit card theft happens in different ways; it could be physical theft of your card or access to information relating to your card.
The good news is that credit card issuers are looking for ways to end this fraud. They are incorporating advanced technology into the cards to ensure that they identify any malicious activity. This includes adding chips, magnetic strips, and pin technology.
This kind of fraud has continued to reduce as this technology becomes more prevalent in credit cards. Besides, credit card issuers, banks, and users are becoming more informed about this type of fraud and how they can prevent it.
Another B2B payment hacking technique that you need to be careful about is wire fraud. With this type of fraud, cybercriminals use telecommunication such as a call or email to willingly lure their victims into giving them their personal information.
There are different ways that you can protect yourself from wire fraud. The first preventive measure that you can use is a two-step authentication feature for your email. Another way to keep safe is resisting the urge to send money while being pressured by an unknown person on the phone.
It is also essential to avoid strange offers from people who are unknown to you. Internet transactions are also popular sources of wire fraud and should get handled carefully. Providing people that you do not know with your personal information can also expose you to scams.
Another common type of fraud that you can get exposed to is check fraud. This type of fraud is common as a person becomes vulnerable whenever they write a check to someone. There are different types of check fraud that a business can prepare to counter.
They include forgery, theft, counterfeiting, washing, check kiting, and paper hanging. Many businesses are writing fewer checks today, but that doesn’t make them immune to check fraud. Attackers exploit every little chance they have to steal from their victims.
With the opportunity for check fraud still there, businesses need to be more cautious. They can take steps such as protecting their checks, monitoring bank accounts, avoiding mailing checks to mailboxes, etc. Anything less from maximum caution, and a business could lose a lot of its finances to scammers.
Cybersecurity Trends to Watch Out For in 2021
There are various cybersecurity threats that businesses can expect to increase in 2021. Here are a few of the most popular cybersecurity trends that you need to watch out for;
1.Social Media Threats Expected to Rise
There is an increased usage of social media by individuals and businesses. But then, the growing popularity of social networks has come with its fair share of threats. Now, everyone using social media platforms operates at considerable risk.
Cybercriminals prefer launching their attacks on social networks for various reasons. Most businesses have poor authentication and require little verification on their social channel. This has increased the chances of seeing more social media threats in the future.
2.Automation is Becoming a Cybersecurity Threat.
Another trend that is growing is business automation. Automation is vital for every business that is looking to increase productivity.
Automation has, however, posed severe security threats to businesses. Attackers check business networks for vulnerabilities that they can exploit with malicious intentions. Companies need to invest more in endpoint security systems and train their employees to be safe.
3.Increased Ransomware Attacks Due to Remote Working
More people are working remotely today than ever before. But then, this has led to an escalation of ransomware attacks on businesses.
With attackers exploiting this technique more, businesses need to be more vigilant. They need to tighten security protocols for employees accessing business networks remotely. Without proper security measures, it will be difficult for businesses to counter this trend.
As we have seen above, there are various B2B payment frauds that businesses need to care about in 2021. Whether it is ACH, wire, check, or credit card fraud, there are different ways for companies to prevent severe losses. For instance, sticking to the best practices can help a business stay safe.
This article has also looked at some of the cybersecurity trends to keep in mind in 2021. As a business owner, stay updated about the most popular industry trends. You can use the tips and insights shared in this article to make the best out of modern B2B payment techniques.