New: A Statement on Fraud from Our Chairman & CEO
Read Michael Scaief’s perspective on today’s fraud environment and why fraud prevention has become a shared responsibility for every individual, family, and business.
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A member of your accounting team receives a phone call from someone claiming to be from the bank.
The caller claims to be calling about suspicious activity on the account. The caller knows the business owner’s name, what branch they do business with, and explains that immediate action is needed to help protect the account. They ask the employee to verify a one-time passcode to confirm their identity or send the employee a link to begin a transaction dispute.
The employee believes they are helping protect the business. In reality, they are providing the fraudster with the access they were looking for.
Businesses invest significant resources protecting their financial accounts. Online banking controls, fraud monitoring, cybersecurity, and payment security all play an important role.
Fraudsters understand those protections, which is why many fraud schemes focus on something else: the employees who have the authority to access accounts, approve transactions, or change payment instructions. The important thing to remember is that knowing your business or your employees doesn’t prove someone is legitimate. Strong verification procedures remain one of the most effective ways to prevent fraud.
Modern fraud begins long before the phone rings. A fraudster may already know the business owner’s name, which employees have responsibility for online banking, who normally approves payments, which vendors the business works with, where the business banks, or even recent company announcements posted online.
Company websites, professional networking sites, public business records, and social media can help them understand how a business operates before they ever make contact. They may learn who owns the business, who manages accounting, who approves payments, or who is responsible for treasury management.
By the time a phone call or email reaches the right employee, the fraudster may already know enough about the business to make the request feel routine. Employees are often trying to do exactly what they believe is expected of them. That is why well-defined procedures are just as important as strong technology.
Modern fraud begins long before the phone rings. A fraudster may already know the business owner’s name, which employees have responsibility for online banking, who normally approves payments, or which vendors the business works with.
That preparation helps make an unexpected request seem consistent with normal business operations. A caller may reference information that is accurate, use familiar terminology, or claim they are helping protect the business from fraud.
Knowing details about your business, however, is no longer proof that someone is who they claim to be. Verification should remain part of the process, even when a request appears familiar or urgent.
Access additional resources and practical lessons to help support your employees and safeguard you business at TRB's Fraud Prevention Resource Center.
Learn MoreTechnology is an important part of fraud prevention, but employees make financial decisions every day that technology cannot make for them. Clear procedures help employees respond consistently when unexpected requests occur.
Consider practices like:
Employees should understand that taking time to verify an unexpected request is part of protecting the business, not slowing it down.
Strong fraud prevention depends on more than secure systems. It also depends on employees who understand when to pause, verify, and follow established procedures before taking action.
Businesses that establish clear verification procedures and make fraud awareness part of everyday operations are better prepared to recognize suspicious requests before money moves or account access is compromised.
The bank protects the account, but the business protects the people with access to it.
