15 KENTUCKY AUTO DEALER signal to employees. Employee education about fraud awareness is one of the best ways to get started. Fraud barriers include: • Clearly defined fraud prevention roles and responsibilities for you and your employees • Separation of duties, checks and balances, and multi-factor authorizations for funds transfers • Secured computers with password protection, changed periodically • Restricted user account access to individual owners with no shared access • Web filters and controls that block clicks on potentially fraudulent links Check and wire fraud are the top two payment fraud threats for any business. Sixty-six percent of companies reported that check payments were subject to fraud, and 39% were victims of wire fraud attempts.1 Dealership payment volumes – both paper and electronic – make an attractive target for fraud. Implementing a few simple, inexpensive processes can protect your dealership. • Use positive pay services. You’ll be able to verify the authenticity of checks by looking over the issue date, check number, amount, and payee name to catch check fraud. • Protect check stock with dual authorization before use. • Authentication is further enforced through online banking platforms which require additional authentication for wire transfers through assigned user ID and password logins, requestor authentication, and dual approvals. Phishing and social engineering attacks scam employees into believing an email is from a reputable company or dealership employee. The recipient then reveals sensitive information, passwords, and credit card or account numbers. Phishing emails can appear to be from the dealership owner, ordering large sums to be wired to external accounts, which then vanish moments after the transfer. Phishing emails entice unsuspecting employees to download innocent looking files or click on malicious links and infect computers with spyware, viruses, or ransomware. “Phishing attacks are one of the most common and damaging ways for hackers to access your systems,” Mr. Nachbahr explains. “Your employees should be the frontline defense against attack – your ‘human firewall’. Ongoing employee training, education, and support allows them to recognize social engineering attacks and thwart costly episodes before they begin.” Preventative measures include: • Web filters and controls that restrict access to phishing links • Multi-factor authorizations for wire transactions • Limits on payment amounts that a single employee can authorize Continued on page 16 The cost when cyber criminals strike Cost of a data breach: $180 per PII record stolen3 Loss of customer loyalty: 25% of customers say they will leave after a data breach6 19 days in length5 $274,200 average cost of related downtime4 Cost of ransomware attack downtime: Fraud by the numbers1 % of companies experiencing fraud: Check Fraud Wire Fraud 39% 66%
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