Regions hosted a hybrid event for business owners from across Alabama. Larger companies. Smaller companies. Some were present in the room in downtown Birmingham while others joined by videoconferencing from other cities.
What all these companies have in common is they understand fraud can affect any organization. So, they took advantage of a free service from Regions Bank designed to alert them to common scams- while giving them advice and guidance on how to avoid becoming a victim.
Christian White, who oversees commercial banking for Alabama, Mississippi, the Florida Panhandle, and Chattanooga, opened the session highlighting the bank’s dedication to fraud education and prevention.
“Fraud is disruptive, costly, and evolving. While we can’t eliminate all fraud, we’re committed to helping our clients mitigate risks through education and the right tools,” White said.
The event, titled “How to Safeguard Your Organization from Fraud,” featured expert insights from Jeff Taylor, Senior Vice President of Fraud Forensics and Payment Strategy at Regions, and Key Yeilding, who leads Treasury Management for the Southeast. Together, they explored emerging fraud trends, real-world scenarios, and practical solutions businesses can implement.
A Rising Threat Landscape
Taylor dove into alarming statistics from recent surveys, including data from the Association for Financial Professionals (AFP) and the FBI’s Internet Crime Complaint Center (IC3). The AFP report revealed 80% of businesses reported being fraud victims in 2023, with fraud attacks increasing across all business sizes. IC3 reported a staggering $12.5 billion in internet crime losses in 2023, up 22% from the previous year.
“This isn’t just about large corporations; fraudsters are indiscriminate,” Taylor emphasized. “They target any organization—large or small—seeking opportunities to steal funds or sensitive data.”
Taylor highlighted three dominant attack vectors:
- Check Fraud: A resurgence in check fraud is driven by organized theft targeting U.S. Postal Service workers and mailboxes. Fraudsters use stolen checks to create counterfeit versions or “wash” existing checks with chemicals to alter payee and amounts.
- Ransomware: This attack method locks businesses out of their networks until a ransom is paid. Fraudsters often gain access through phishing emails, infected links, or malicious attachments. Taylor warned even paying a ransom may not guarantee safety, as fraudsters often steal and resell data.
- Business Email Compromise (BEC): BEC attacks, where fraudsters impersonate executives, vendors, or trusted advisors, remain the most frequent threat. Taylor detailed cases where fraudsters spoof email addresses or infiltrate legitimate email threads to deceive businesses into transferring funds to fraudulent accounts. This is most recognizable when the emails from your “co-workers” include phrases like, “Would you kindly…”. Language that is not typically used by people you are familiar with is a red flag.
Evolving Tactics: AI and Deepfake Technology
A major focus of the discussion was how fraudsters leverage advanced tools like artificial intelligence. Taylor explained how AI enables them to create highly convincing phishing emails and even realistic deepfake audio or video to impersonate trusted individuals.
“AI is reshaping the fraud landscape,” Taylor said. “Fraudsters are using tools like ChatGPT to craft flawless, persuasive emails. They’re also exploiting social media content to create convincing impersonations, like spliced audio for scams targeting grandparents.”
Proactive Prevention Strategies
Regions Bank urged businesses to adopt a layered defense approach, combining technology with employee training and sound governance. Key strategies included:
- “Stop, Call, Confirm” Protocol: This simple yet effective process encourages employees to pause and verify payment requests directly with the sender via a trusted contact method. The fast way to verify is to call a trusted source and verify if the email/request is legitimate.
- Positive Pay: By verifying checks against an issued file, this tool helps businesses detect and reject fraudulent transactions.
- Robust IT Practices: Regularly updating software, securing passwords, and monitoring networks for vulnerabilities are critical. Taylor also stressed the importance of using different, complex passwords for each platform.
- Employee Awareness and Training: Yielding emphasized the importance of ongoing education to help employees recognize phishing attempts and suspicious activity. Fraud evolves constantly, and training needs to keep pace.
The Importance of Planning
Taylor encouraged businesses to develop comprehensive fraud governance plans. “You don’t want to wait until a fraud event happens to figure out how to respond,” Taylor warned. “Know your risk tolerances, establish clear protocols, and ensure your team is prepared.”
He also advised reviewing cybersecurity insurance policies to ensure adequate coverage, particularly for human-error-related losses like BEC incidents.
Closing
Regions Bank reaffirmed its commitment to protecting businesses, with White and Yeilding urging attendees to leverage the bank’s fraud prevention tools and expertise.
“This is an uphill battle,” Taylor said. “Fraudsters are organized and well-funded. We need to be equally organized in our defenses. Education, awareness, and the right tools are the keys to staying ahead.”
As fraud grows more sophisticated, the message from Regions Bank is clear: Businesses must remain vigilant, proactive, and informed to safeguard their assets and operations.
Baylor Frazier is a digital and radio sales specialist for YHN Media Group. For advertising opportunities through our portfolio of publications, you can contact him directly at [email protected].
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