[BreachExchange] Protecting your business against fraud

[Audrey McNeil]

http://www.mortgagesolutions.co.uk/better-business/2016/03/24/68035/

The prominence of the internet has changed the way companies of all sizes
conduct their business. It has opened the doors for many SMEs to streamline
their processes and generate additional opportunities in areas which
previously might have appeared out of reach. However, it is not without
some downsides, a major one being the growth in the prominence of cyber
crime.

Last summer a government security breaches survey found that nearly
three-quarters of small organisations reported a security breach in the
last year. This is a real concern, as is the variety and scale of the scams
which are currently in the offing.

In early 2016, reports emerged about some cases of conveyancing fraud. In
these instances criminals were said to have hacked into emails sent between
solicitors and clients. The fraudsters, posing as the solicitor, then sent
emails with instructions to transfer the money from property transactions
to a rogue account. The funds then disappeared.

This is obviously a terrible scenario for the borrowers in question. It
also leaves solicitors, lenders and even intermediaries in a vulnerable
position as nobody wants this to happen to their valued clients. After all,
the aim of any professional or respectable lending institution is to best
protect their clients and provide as seamless a transaction as possible.

As a lender it’s absolutely vital to have a fraud prevention strategy in
place. Plus a substantial, and active fraud team alongside a raft of
resources for individual and business borrowers. But, as an intermediary,
what more could you be doing?

The first prudent step is to ensure your business is fully protected,
including the data you have in your possession. The lengths at which cyber
criminals go to shouldn’t be underestimated.

If any clients are set to transfer funds online it might be worth
highlighting the need to ensure that they have adequate security measures
installed on their personal computers.

Clients could also be made aware that changes to any payment details
attached to the transaction should be treated with suspicion. For example,
if they are sent an unencrypted email or asked for personal data by email,
or anything that feels even remotely dubious, then they should pick up the
phone and verify it directly with the party in question.

Such cases are still extremely rare and the vast majority of property deals
do go through without a hitch. However, it’s evident that all links in this
particular chain need to be as vigilant as possible to ensure that they as
protected as possible. The modern mortgage market demands that the advice
process incorporates a wider arch than ever. The inclusion of cyber
security and anti-malware protection will not only help safeguard your
business but also provide an additional layer of protection for your
clients and subsequently cement your long-term relationship with them.
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