As you evaluate opportunities to introduce greater automation into your payables processes, it’s important to put risk mitigation measures in place to protect your vital assets. The following seven practical steps will go a long way to helping reduce potential exposure to attempts to compromise your payables by fraudsters:
1. Employee education is critical. A thorough understanding of security procedures and policies will make it far more difficult for perpetrators to infiltrate the payables function. Employees should be trained on how to identify “Red Flag” threats, so they can alert appropriate authorities.
2. Implement multiple approval levels based on the transaction type and amount and the user making a purchase.
3. Utilize data-rich reporting to help monitor spending and identify unexplained increases in purchases or questionable suppliers. Monitoring statements will reveal fraud early, allowing you to take action.
4. Implement strong authentication practices, and always be sure to clear logins and passwords, especially if using a public computer.
5. Be alert for phishing - always verify a site is secure (indicated by https://) when entering card info
6. Verify your business address with both the post office and your banks; notify card companies prior to a change in address.
7. Be vigilant - never click on links or attachments from unknowns senders. Make sure anti-virus software is updated and be sure to set privacy controls on social media sites.
Employee awareness is key to fighting fraud. And putting effective fraud controls in place can help you protect your payables operations.