In this so-called Cyber Era, new—and particularly aggressive—forms of online fraud are being perpetrated. With one such scheme, called “Executive Impersonation,” a fake email, seeming to come from a high-ranking company executive, is sent to an employee with the authority to transfer large sums of money, requesting such a transfer.
To avoid this type of fraud, companies need to educate and train employees responsible for transferring money about the different kinds of schemes and how to avoid them. Companies should assess policies and procedures for requesting, initiating and approving payments and money transfers,and identify weaknesses in the wire/money transfer process that could be exploited.
Awareness, training and a written internal control policy that employees review regularly, are the best strategies for preventing online fraud.