What fraud measures can you take?

In an increasingly digital world, business fraud is a growing threat to companies. Fraudulent activities, including financial fraud, data breaches and employee misconduct, can result in significant financial losses and damage to a company's reputation. Proactively adopting anti-fraud measures can help reduce the risk of fraud.

Every year, Allianz Trade Benelux conducts a survey on business fraud. Our 2024 survey shows that Belgian and Dutch companies continue to be victim to fraud and scams with great regularity: 69% of companies had to deal with fraud attempts in the last 2 years. Increasing digitalization and the rise of artificial intelligence are making fraud even more difficult to detect.

All too often, companies begin to take an interest in fraud only when they have fallen victim to it. At this stage, only reactive measures can be taken to limit the impact and ensure that this case cannot happen again, for example by dismissing the fraudster in question.

But this is not enough. Fraud must be combated preventively. Discover here below the measures to take to reduce the risk of fraud:

1. Be vigilant
   If you notice something strange, be cautious. Do not open any suspicious link from companies or people you do not know. Show the same distrust of the websites you visit.
2. Give a call
   If you receive a suspicious e-mail asking you information about your company, call to check if the request is justified. Your financial institution will never contact you by email to request personal or confidential information.
3. Know your suppliers
   The e-mail should not be your only means of communication with your suppliers and other partners or employees. Arrange other forms of contact with them. Get to know them well. This will allow you to identify earlier a request that does not fit with the habits of a supplier.
4. Assign payment limits
   The limits granted to employees with little experience should be lower. Even if you are busy, do not try to avoid any work by assigning your employees higher limits. Assign appropriate financial limits and reevaluate them regularly.
5. Apply dual approval
   Make sure at least two persons authorize the payments. This two-fold approval mechanism will protect your company. The check from a second person allow identifying errors or attempt of fraud that can be costly to companies.
6. Check your bank accounts regularly
   If you closely follow the activity of your bank accounts, any fraudulent operation will immediately raise your awareness. Keep in mind that even if the policy of your financial institution is to reimburse any amount related to an unauthorized transaction, it may take time for reporting incidents. If you suspect any fraud, notify your bank immediately.
7. Update your software
   An outdated software cannot adequately protect any information. Install an antivirus software and update it regularly, create backup copies and make use of external technology experts.
8. Raise awareness among your employees
   Make sure your employees know the threats that currently exist and tactics used by fraudsters. Offer them training on the techniques and policies related to anti-fraud campaign. Regularly remind employees of the importance of being vigilant. These reminders are a highly effective way of preventing fraud.
9. Provide a procedure to follow in case of fraud
   Provide a procedure to follow and communicate it to all employees. In case of fraud, it will avoid panic reactions and allow your employees to act calmly, without haste and according to the established procedure.

Although these anti-fraud measures can reduce the risk of fraud, it is impossible to eliminate it entirely. A fraud insurance provides additional protection against the financial consequences of business fraud.

Whether the fraud originates from inside or outside your company, the financial losses can have a far-reaching effect. With our fraud insurance, you can protect your company from financial loss due to both internal and external fraud. This insurance covers not only financial loss, but also damage to systems and reputation. Moreover, you benefit from the expertise of specialists to help you prevent fraud.