Fraud Awareness: Hidden Risks in Routine Transactions

Routine payment and purchasing decisions can introduce risk when verification steps are rushed or bypassed. As part of our ongoing client education efforts, we’re sharing practical reminders that focus on common pressure points in everyday business transactions.

Urgent Vendor Payment Changes

Trend: According to the FBI’s Internet Crime Complaint Center (IC3) 2024 Annual Report, Business Email Compromise was among the most costly fraud schemes reported last year, resulting in nearly $2.8 billion in losses nationwide.

Takeaways:

• Always verify requests to update payment instructions by contacting known vendor representatives using contact information already on file.
• Avoid relying on phone numbers, links, or contact details provided in an email or message requesting the change.
• Independent verification through established channels remains one of the most effective safeguards.

Mail Theft & Check Fraud

Trend: FinCEN reports that check fraud has more than doubled in recent years. Of stolen checks, roughly one-third are used to create fraudulent templates, while nearly two-thirds are altered and fraudulently deposited.

Takeaways:

• Track outgoing check payments and confirm receipt.
• When checks clear, verify that funds were deposited by the intended payee and to the correct account.

Related: Learn how to implement best practices to help protect yourself and your loved ones from check fraud, here: Check Fraud: Secure Your Mail to Protect Yourself

Deals Too Good to Be True

Trend: The IC3 also reports that approximately 83% of fraud-related losses last year were cyber-enabled, with spoofing cited as the most commonly reported cybercrime.

Takeaways:

• Be cautious of urgency, unfamiliar sellers, or unusually favorable offers.
• When possible, confirm the legitimacy of vendors, business entities, and products before completing purchases.

Looking Ahead

Consistently applying these practices can help reduce exposure without disrupting day-to-day operations.

Additional guidance and resources are available in TRB’s Security Resource Library.