Fraud Is Evolving Faster Than Ever, and Businesses Are Feeling the Impact
In a recent Chamber Conversation, Nick Ferrer, treasury management sales director at Ameris Bank, the Chamber’s premiere Pioneer member, outlined the most serious fraud threats facing businesses today. These include check fraud, ACH scams, business email compromise, ransomware, and the rapid rise of AI-driven attacks.
“The fraud landscape is not a very easy topic to breach. The bad guys are working harder to defraud us. The number one thing that is the threat to all of us is the technology, and fraud will become more and more difficult to mitigate and prevent,” Ferrer said.
Ferrer says 79 percent of organizations experienced attempted or actual fraud last year. Checks remain the biggest target, accounting for more than 63 percent of cases, while more than 60 percent of businesses face business email compromise. Ransomware attacks are also rising sharply, with year-over-year growth exceeding 100 percent.
From Ferrer’s perspective, the key risk is technology.
“The fraudsters are using technology to defraud us and our companies. The very quick rise of artificial intelligence fraud will become more and more difficult to mitigate and prevent.”
Small businesses are particularly vulnerable. Ferrer emphasizes that employees should be empowered to question unusual emails or requests.
“If you see something, if you feel something, follow that Spidey sense. Never click anything in an email unless you’re absolutely positive you know where it’s coming from.”
Organizations should also have clear fraud policies and processes. Many victims report not knowing the procedure when fraud occurs. ACH fraud, for example, is more secure than checks but requires quick monitoring — businesses often have as little as 48 hours to dispute suspicious transactions. Ferrer encourages tools like ACH filters and debit blocks, as well as secure communication with vendors.
“If you don’t have a way to send a secure email, pick up the phone.”
Reporting incidents promptly is also crucial.
“I’m not an expert at fraud because it moves too quickly. I’m a student of fraud. What was there two days ago has already evolved.”
12 Risk Mitigates Every Business Should Perform
Ferrer highlights 12 practical steps businesses can take to reduce fraud risk:
Initiate background checks on all employees and contractors
Have a fraud plan and test it routinely with simulations and drills
Conduct an assessment to know how money leaves your business
Leverage bank account design structure to increase risk controls
Mandate process controls including dual control and segregation of duties
Manage employee access based on necessary job functions
Isolate a computer for banking and payment initiation
Inspect bank accounts daily and reconcile frequently
Use fraud prevention services like Positive Pay, Payee Positive Pay, ACH blocks and filters, firewalls, spam filters, anti-virus scans
Pick up the phone to authenticate all requests
Notify the bank and law enforcement if you are under attack
Cultivate a risk management culture to further ensure controls
For more information on protecting your business, visit the Ameris Bank Fraud Prevention Resource Center.