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  • Nicole Dixon

Updated: Jun 18


Wire & Online Banking Fraud Prevention Tips

We all love the convenience of online banking and because so many transactions can

be completed with a click of a button. However, banking online comes with some

challenges that we must always stay ahead of as we are on the go. With the recent

increase of online bank fraudulent activities in the news, I want to share our tips to

protect yourself while banking online.

1. Education is key!

a. Understanding email scams and educating your employees is critical to

protect your financial assets.

2. Keep your contact information current.

a. Your bank can contact you quickly in the event they see suspicious activity

on your account.


3. Use strong passwords & multi-factor authentication

a. Create a password that is long and does not include your name.

b. Use a multi-factor to enhance your personal and company security by

requiring users to identify themselves by more than a username and

password. Examples are 1) Password, 2) Text code, and/or 3)

authenticator (Google and Microsoft).


4. Allow push notifications

a. Your bank can contact you quickly in the event they see suspicious activity

on your account.

5. Protect your devices

a. Keeping your phone, tablet, and computer up to date with the latest

browsers and operating systems helps protect against vulnerabilities that

hackers can exploit.


6. Know which third parties have access to your account information

a. There may be risks with sharing your information with third-party money

management apps and websites.

7. Know the red flags that signal a scam

a. Know who and why you are sharing your personal/business information to

reduce your risk of a scam. If you provide your information or money to a

scammer, there is often little we can do to get your money back.


8. Verify the Person You are Doing Business with:

a. A common cause of wire fraud is due to lack of identity verification at critical

points within this transaction.The best preventative measure is to gather and

share contact information early in the transaction cycle. [For example, when

small business owners sit down to sign a contract or loan origination document to

secure financing (throwing out examples), it would be important to get the full

names, current addresses, email, cell phone numbers of the party involved. As

more information is gathered, not only does it allow you to securely store the

proper contact information, but it also allows you to start educating yourself on

the risk of wire fraud occurring.


9. Review bank transactions weekly/monthly

a. Reviewing your bank transactions on a weekly/monthly basis will help to

eliminate fraud by catching these activities early and taking action. Always

look at the small amounts coming out of your account because over time

they will add up. If you extend credit to employees, ensure to put a limit on

how much can be spent daily, weekly, and monthly.


10. Implement dual & triple internal controls

a. Implementing dual or triple controls within the business can reduce the risk of

online fraud. You will be able to trace each step of the activity. The ideal

suggestion is to have one person initiate the transaction, a second person

approves the transaction, and the third person finishes it. A recommended

application to implement dual and triple controls is Bill.com.