Cybersecurity Fraud Prevention Week is this week and Innovative Network Systems, Inc. is a proud supporter.
What is Cybersecurity Fraud Awareness Week?
For over 21 years, the Association of Certified Fraud Examiners (ACFE) has dedicated time and resources to raise awareness of employee business fraud. This year, the Cybersecurity Fraud Awareness Week campaign is held on November 14 – 20th. The focus is to prevent and educate international communities on deliberate acts of fraud to deprive their employer of property or money.
Why is INSI Involved in the Cybersecurity Fraud Awareness Week?
INSI takes cybersecurity very seriously, and we invest countless hours each year educating our clients and the community through webinars, training opportunities, how-to documents, and anti-fraud information throughout the year. After all, most of these thefts happen with the use of IT.
As a trusted partner in the IT business, we feel we have seen it all. For example, one of our clients shared that an executive took thousands of dollars through fraudulent expense reports and invoices. In addition, we have also seen employees break into the webserver to change website prices to $1 for spite. Further, we were brought in when a disgruntled IT employee left a backdoor open to the Electronic Medical Records, (EMR) so they could steal the patient database for their new employer.
Common Fraud Schemes
The Cybersecurity Fraud Awareness Week website states that the primary reasons for committing fraud include financial pressure, opportunity, and rationalization. Specifically, an employee may be stressed if they live beyond their financial means, such as illegal habits or overspending. Opportunity is when an unscrupulous employee perceives a way to commit fraud and then takes advantage of it. Last, rationalization is when an employee convinces themselves that the company owes them something or they are temporarily borrowing it. The most common types of fraud include:
- Stealing Cash – The employee removes cash from the business before it enters the accounting system. Examples include recording a sale for a lower amount than the actual cost or pocketing an unrecorded amount.
- Payment Tampering Schemes – The employee fraudulently diverts payments to themselves or a friend.
- Billing Schemes – The fraudster diverts payments to their personal bank account.
- Expense Reimbursement Schemes – The perpetrator fraudulently overstates actual expenses or creates fictional expense forms. Good examples of this usually include client entertainment or business travel.
- Payroll Schemes – The employee makes a false claim on their payroll. Examples include commissions or timeslips.
- Inventory Fraud Schemes – When the employee either uses office supplies for personal use or orders excess inventory and resells it to a third party.
Cybersecurity Fraud Awareness Advise
INSI advises you to take cybersecurity fraud awareness seriously. Of course, it is not always clear who will or will not steal from the company. That’s why we suggest you perform a background check on all employees. Interestingly, over 77 million Americans hold a criminal record which accounts for roughly one-third of adults in the United States. And those are just the ones who were caught! However, many red flags might indicate someone is at risk of stealing, including:
- Living Beyond Their Means
- Financial Difficulties
- Close and Personal Relationships with Vendors or Customers
- Territorial of Their Job Responsibilities
- Irritability, Suspicious Behavior, or Defensiveness
- Shrewd or Unscrupulous Behavior
While these indicators are red flags, it also applies to many honest people. So, exercise caution and be careful not to jump to conclusions while you do your cybersecurity fraud awareness check. As an IT support provider, we at INSI, do background checks on all of our engineers to ensure our client’s data is safe. (Source: https://www.fraudweek.com/)
About INSI, The Best IT Support Provider in Atlanta
For over 25 years, Innovative Network Systems (INSI) has offered an integrated approach to IT support and cybersecurity for small and medium-sized businesses in the Atlanta area. Their 100% local, college-educated, and experienced engineers provide a range of services from basic monitoring to fully Managed IT services. The INSI IT support model gives their clients the exact level and type of service they want while also providing greater accountability and reduced ongoing IT support costs. INSI options include cloud, cybersecurity, backups, cabling, wireless, business phones, strategic IT planning, and much more.
About the Author
Deborah Frazier is the author of IT Outsourcing Secrets – A Small Business Guide to Compare IT Support Companies. With nearly 20-years’ experience consulting small and medium-sized businesses on their IT support needs, she brings a wealth of knowledge to INSI as Head of Marketing and Sales. If you like this article and would like to get notified when a new article is posted, click here.
