2. 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. • Further enforce authorization through online banking platforms which require additional authentication for wire transfers through assigned user ID and password logins, requestor authentication, and dual approvals. 3. 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 • Cloud backup for restoration following a malicious software attack • Intrusion detection software to identify suspicious network activity 4. Synthetic identity fraud is another risk to dealers today. Imposters use fake information to create fictitious identities, combining stolen identity information to create new credit files. These new synthetic identities allow criminals to qualify for a loan to buy vehicles, putting dealerships at risk for losses. Background checks verifying customer identity offer the best protection. Check Fraud Wire Fraud 39% 66% Fraud by the Numbers1 % of companies experiencing fraud: 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: The Cost When Cyber Criminals Strike 20
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